Credit Cards

[HelpMyScoreNow]

I had a Chase card that carried a $4360 balance.  I wrote a check today for the total amount.  Was that the right thing to do?  This is the only card I have (others are open, but I don't use).  Should I use it monthly as long as I PIF each month?  I have two stupid medical collections ($27 and $54) and will be using the HIPPA letters ASAP.

I currently have a mortgage (144k), car (21k) , equity line (19k) and student loan (9k).  The mortgage is being covered by my tenants, so I don't have that monthly mortgage payment right now.  All other bills are paid electronically and are never late.  

I had a 760 2 years ago....I would like to get to 700 as quickly as possible.  ADVICE??? 

2/02/09 TU-635, EQ-634

3/09/09 TU-636, EQ-635 

[slarano]

Congrats on paying that off! I have a similar balance on a Chase card, but don't have the means to pay off in full just yet.

Anyway, you should keep around a 7% utilization on two cards, to show that you're still active, and thus, a viable asset to credit card companies.

[PayingTheBills]

Not sure where that 7% util is coming from, there is no magic number. 

IMO, let one of your cards report a small balance, $5 or so, but less than 9% for sure, and pay the rest in full every month.  Try to use each card every 4-6 weeks at least, in order to keep them active.

[HelpMyScoreNow]

7% on two cards?  Well, I was an idiot and closed all of my credit cards at once.  I got a little freaked out with all of the revolving credit and the guy I got my car loan through acted like it was a good idea. OYE...the Chase card is the only one that I consider usable.  The other is a $6500 empire carpet and a 3500 Lowes.  Oh what to do..what to do.

But THANKS for the congrats.  I have to admit, I used my whole tax refund ;-) 

[greyhound2007]

Congrats, IMO paying it off was the smart thing to do. Good Luck Vicki 

[VEEnVEGAS]

As much as I hate advising anyone to apply for new credit cards I think it might not be a bad idea for you to wait for a score bump from the paid off Chase card and then app for one good, prime card.

Right now with the craziness of CLD and rate jacking I just wouldn't want to have all my credit in one basket. Pretty sure the carpet card and Lowes aren't something you could use everyday.

If you could re-open a card that you have a good relationship and some history with that would be even better. Not usually a good idea to close your cards no matter what the car dealer told you.

Message Edited by VEEnVEGAS on 03-09-2009 06:01 PM

[slarano]

I base my target suggestion of 7-10% utilization from the percentage of FICO scores at the top of the FICO range. I agree, there is no magic number, but setting a good one doesn't hurt.

I agree with the poster suggesting to open a new card or to contact one of the companies you have a good relationship with, to see if you can re-open an older account. I wouldn't recommend closing a card to anyone who has any amount of self control, and it seems like if a car salesman can talk you into doing something drastic with your credit, you have more than enough potential to control your own credit. 

Good luck!

[HelpMyScoreNow]

I am not THAT big of a loser to allow a car salesman to convince me what to do.  He was a bank loan officer, who apparently had no idea what he was talking about.  Good idea about trying to open an old account.  I will wait until I get my bump and see if one of my old faithfuls will give me my card back.  Its just scary when you walk around with thousands of dollars of revolving credit and they just sit there with zero balances.  Oh well...I have learned!

[haulingthescoreup]

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HelpMyScoreNow wrote:

Its just scary when you walk around with thousands of dollars of revolving credit and they just sit there with zero balances.

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From my current EQ report (the full one, from the bureau):

Revolving: 11 accounts
$0 balance
$103,012 available
$103,012 credit limit
0% debt to credit ratio
$0 monthly payment amount
0 accounts with a balance



Get used to the feeling of having power over your credit. It's a great, great feeling.

(And yes, I generally have one account reporting 10 or 20 bucks. This is a fluke, resulting from a gap in reporting dates.)