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Member
nigel11
Posts: 15
Registered: ‎12-30-2009
0

Next move .... if any

Current Situation / Accounts

 

Orchard Bank               Opened 02/2007             Limit $700 / $0 Balance

 

Credit One Bank          Opened 08/2007             Limit $1325 / $0 Balance

 

Chase                            Opened 09/2007             Limit $3500 / $0 Balance  -- account closed by them when they switched from wamu

 

Dell                                Opened 06/2008             Limit $6500 / $0 Balance

 

Capital One                  Opened 07/2008              Limit $1500 / $0 Balance

 

Capital One                  Opened 08/2009              Limit $1500 / $0 Balance

 

Wal Mart                        Opened 09/2010              Limit $ 700 / $0 Balance

 

Car Loan                       Opened 06/2007              $6000 Balance

 

I also have an 8 year old bankruptcy.

 

Was wanting to hear everyone's ideas on what to do next.  I just recently ( 1 month ago ) got done paying off my last few cards with balances and was thinking I would like to close the old starter cards.  I was also considering opening 2 new ( actually good ) cards, 1 strictly for internet use and the other for everyday use.  

 

Questions

 

What cards should I cancel?

 

How soon after paying everything off should I start looking at new cards?

 

I am planning on purchasing a new car at the end of the year, will it hurt anything to be applying for credit cards over the next few months?

 

 

 

Almost forgot, thanks to everyone that contributes to these forums.  This is a pretty cool community.

Valued Contributor
clocktick
Posts: 1,603
Registered: ‎12-07-2008
0

Re: Next move .... if any

[ Edited ]

Do any of your current cards have a AF?  How long will your BK be on your reports, 10 years?

 

Some cards (Citi, I think) have virtual account numbers you can use for online purchases so there's no risk of someone getting your actual card number - definitely something to look into, unless you wanted an online card for other reasons.  What kind of cards are you looking for and why (rewards, 0% interest, future balance transfers, etc.)?

11/30/08 TU 648 EX 672 EQ 656 SEPT 2014 TU 787 EX 789 EQ ???
Amex BCP $24.1K/Clear $8.5- Sallie Mae $27.5 -Cap One QS $7.5 - Chase Freedom $7.5/United $5k/CSP $20k/Ink- Citi DP $9.5/Dividend $13k/HHHx2 $15k/16.4/Reserve $4.5k Best Buy $1940 HD $1701- Discover IT $15k - Elan $8k GEMB Lowes $20k - Macy's $2k - Kohl's $800




Starting Score: 648
Current Score: 736
Goal Score: 765


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Moderator Emeritus
llecs
Posts: 32,869
Registered: ‎08-04-2007
0

Re: Next move .... if any

[ Edited ]

Be sure to read fused's Closing Credit Cards .

 

Congrats on the debt paydown!

 

Is there a reason why you'd want to close any CCs (e.g. fees, etc)?

 

If I had that going, and if I financed a car, then I personally would wait until after the car to get the CC. New credit can sometimes ding some and you wouldn't want to jeopardize a lower car APR because of a new CC. Though I'd also consider opening a new CC or two, maybe from a CU, after the car purchase. If I had that I'd also consider closing Orchard and Credit One to start, but I'd also wait until after the car.

 

ETA...clocktick is a faster typer.

Super Contributor
DI
Posts: 5,744
Registered: ‎01-28-2008
0

Re: Next move .... if any

Although its your oldest card, I'd cancel the Orchard if you pay an AF.  Other than that things look nice.  You're doing an exceptional job managing your credit post BK.    I'd wait another year or two before adding more accounts.  That'd give your BK more time to age.  Do you really need a new car at the end of the year?  Are you planning to finance?  If you cannot get a really low APR on the new car loan, I'd wait until the BK is gone.

Member
nigel11
Posts: 15
Registered: ‎12-30-2009
0

Re: Next move .... if any

Clocktick --  The two cards that have AF's are the Orchard Bank and the Credit One Bank cards.  Unfortunately they are also my oldest two cards.  And yes my bankruptcy will be on my reports for 10 years, only two more to go:smileyhappy:  I had my eye on a decent rewards type card as I have zero intention of carrying balances so interest rate does not matter ( hopefully ).

 

llec -- Thanks for the link to closing credit cards

 

DI -- No I don't need a new car, heck nobody needs one.  But that sure doesn't stop me from really wanting one, though I am sure my practical side will have talked me out of it come time to purchase.  Though I have been ranting about getting out of my car and back into a SUV now for years so maybe there is a chance that my friends and family are sick of it to the point where they will chip in on the new SUV:smileywink:

 

So the consensus seems to be to wait to close or open any new credit cards until after I purchase a car?  If I decide that I won't be purchasing a new car, are there any other factors that should cause me to wait to close Orchard and Credit One?  After reading the Closing Credit Cards sticky from llec it seems like it should be okay since they are paid down to $0.

 

Thanks for such quick advice everyone.

Member
nigel11
Posts: 15
Registered: ‎12-30-2009
0

Re: Next move .... if any

Also wanted to say that the main reason for getting two new cards is for my own peace of mind.  I do a lot of internet shopping and I would feel more comfortable using a credit card as opposed to my debit card that I use now.  Same goes for real life I suppose.  I know they say that the debit card offers the same protections as a credit card as far as fraudulent charges are concerned, but atleast with the credit card the money isn't missing out of my bank account and I have time to dispute it.

 

So I guess that is a long winded way of saying that I am in no particular hurry for the new credit cards, just wanted a little more securit / peace of mind and also maybe the rewards that some of them have.

Super Contributor
DI
Posts: 5,744
Registered: ‎01-28-2008
0

Re: Next move .... if any

 


nigel11 wrote:

Clocktick --  The two cards that have AF's are the Orchard Bank and the Credit One Bank cards.  Unfortunately they are also my oldest two cards.  And yes my bankruptcy will be on my reports for 10 years, only two more to go:smileyhappy:  I had my eye on a decent rewards type card as I have zero intention of carrying balances so interest rate does not matter ( hopefully ).

 

llec -- Thanks for the link to closing credit cards

 

DI -- No I don't need a new car, heck nobody needs one.  But that sure doesn't stop me from really wanting one, though I am sure my practical side will have talked me out of it come time to purchase.  Though I have been ranting about getting out of my car and back into a SUV now for years so maybe there is a chance that my friends and family are sick of it to the point where they will chip in on the new SUV:smileywink:

 

So the consensus seems to be to wait to close or open any new credit cards until after I purchase a car?  If I decide that I won't be purchasing a new car, are there any other factors that should cause me to wait to close Orchard and Credit One?  After reading the Closing Credit Cards sticky from llec it seems like it should be okay since they are paid down to $0.

 

Thanks for such quick advice everyone.


Everytime I get new car fever, I take my SUV to get it cleaned and shined.  After that, I feel like I'm driving a new car. 

Member
nigel11
Posts: 15
Registered: ‎12-30-2009
0

Re: Next move .... if any



Everytime I get new car fever, I take my SUV to get it cleaned and shined.  After that, I feel like I'm driving a new car. 



Well thats not fair, you already have your SUV.  Though good point on cleaning my car, it could really use it.

 

Sorry to get off topic.

Moderator Emeritus
beamMEup
Posts: 4,470
Registered: ‎12-31-2008
0

Re: Next move .... if any


nigel11 wrote:

Also wanted to say that the main reason for getting two new cards is for my own peace of mind.  I do a lot of internet shopping and I would feel more comfortable using a credit card as opposed to my debit card that I use now.  Same goes for real life I suppose.  I know they say that the debit card offers the same protections as a credit card as far as fraudulent charges are concerned, but atleast with the credit card the money isn't missing out of my bank account and I have time to dispute it.

 

So I guess that is a long winded way of saying that I am in no particular hurry for the new credit cards, just wanted a little more securit / peace of mind and also maybe the rewards that some of them have.


So, nigel, Can you earmark one of your current cards (i.e. one of your Cap One's) for internet shopping?  And earmark another (maybe the other Cap One) for your go-to real life spending?

And, if you're taking votes, I'd cast my vote for closing the AF cards.  You'll still have four cards open - that's plenty.  Opening a new cc isn't going to give you any FICO points and you may lose a few. 

 

And I love DI's idea of going in for a nice car wash when you get new car fever - smart!  For me, I look at my spreadsheet everytime I get car fever and it helps to get me excited about value-to-loan and such.  I love the concept of being car debt-free.  It makes my toes tingle!

Just puttin' syrup on something, don't make it pancakes.
Moderator Emeritus
beamMEup
Posts: 4,470
Registered: ‎12-31-2008
0

Re: Next move .... if any

Hey nigel,

 

I just read through your previous posts from last fall.  Looks like you've made great strides in paying down your cards since then.  So, I wonder what your FICO score currently is - I know you posted it back then.  It will be fun, after you know the accounts have reported the zero utilization to see what your score is sitting at.

 

And, of course, for best FICO scores, remember to let all accounts but one report a zero balance; with the remaining account reporting less than 9%.

 

Your Walmart card is a GEMB, so they are likely to give you CLI's after every fourth statement cuts.  That's potentially 3 CLI's a year from them.  Might be worth working them as you move forward.

Just puttin' syrup on something, don't make it pancakes.

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