@Chris679 wrote:
@NRB525 wrote:
@swtprncess281 wrote:
Can someone assist me with a path forward on my credit cards? I'm wondering how I maximize my score with my credit cards as they stand? Should all accounts always report a zero balance or should each be zero'd out like every other month? My scores are in my signature and I'm trying to get them to Amex range.
Account Name Opened Balance Limit Capital One Apr-03 $3.00 $600.00 Capital One Mar-07 $329.00 $600.00 Capital One Sep-08 $0 $600.00 TD Bank USA/Target Credit Sep-08 $0 $500.00 Macy's Dec-08 $0 $100.00 Jarad Mar-09 $0 $800.00 Comenity Bank Buckle May-10 $0 $350.00 Comenity Bank Limited May-10 $0 $450.00 Comenity Bank Ann Taylor May-10 $105.00 $2,310.00 Comenity Bank NY&Co May-10 $0 $820.00 Best Buy Rewardzone May-10 $0 $300.00 Comenity Bank Victoria Secret Jun-10 $0 $450.00 Merrick Bank Jun-10 $597.00 $1,300.00 Barclays Bank Delaware Aug-14 $1,010.00 $1,700.00 Comenity J. Crew Nov-14 $0 $300.00 Comenity Bank Express NEXT Nov-14 $0 $500.00 Navy Federal Credit Union CashRewards Nov-14 $0 $10,000.00 This is a decent set of cards, balances are in control. You have no balances on the store cards. You might consider closing several of them.
Keep the Credit Cards open, especially the older Capital One cards.
You aren't using the NFCU Cash Rewards line/card? Can you do a balance transfer to that? If so, transfer $500 from the Barclays Bank Delaware account. This puts a slight load on the NFCU account (you owe the money anyway, just using it more effectively in your balances). Not only that, but you aren't showing ANY utilization on the NFCU item, which I think is not helping your scores. This $500 transfer would put a 5% balance on that account, and start showing some payment activity. Pay it slowly.
Moving the $500 from Barclays changes that account from 60% utilization (quite high in FICO scoring) to 30%, a much better level. Then continue to pay it down slowly.
Pay the Merrick Bank to $400 or lower, this puts it from 45% util to 30% util. You could even BT $200 to NFCU to get this Merrick balance down. Then continue to pay this down slowly.
Pay the 2007 CapOne account to $200 and then continue to slowly pay it down.
The main focus of the above suggestions is to get each card at 30% or lower utiliziation, but STILL LEAVE A BALANCE that you are paying off slowly (at least minimum payments) over time. Credit building takes time, and it takes showing payments. I think you've got the foundation to show good payment history, although I can't say how long it will take to raise scores. The other consideration is, AMEX probably wants to see consistent, on time payments and by using all these accounts in that way, hopefully your story will read well for them, even if you are only in the mid-high 600s at the time you app.
Good luck!
There is no need to pay anything off slowly, doIng that is just throwing away money in interest. Pay off everything right away and let at least 1 card report a small balance each month. Your credit report shows only "paid as agreed" wether you actually make a payment or not.
I think if you are communicating to AMEX through your payments, it is a different strategy than just optimizing FICO score. AMEX doesn't just look at FICO, they look at payment history, payment pattern. Do I have a definite quote source for that? No, but it seems to be their result, their YMMV adjustments to different applicants.
@Chris679 wrote:
@NRB525 wrote:
@Chris679 wrote:
@NRB525 wrote:
@swtprncess281 wrote:
Can someone assist me with a path forward on my credit cards? I'm wondering how I maximize my score with my credit cards as they stand? Should all accounts always report a zero balance or should each be zero'd out like every other month? My scores are in my signature and I'm trying to get them to Amex range.
Account Name Opened Balance Limit Capital One Apr-03 $3.00 $600.00 Capital One Mar-07 $329.00 $600.00 Capital One Sep-08 $0 $600.00 TD Bank USA/Target Credit Sep-08 $0 $500.00 Macy's Dec-08 $0 $100.00 Jarad Mar-09 $0 $800.00 Comenity Bank Buckle May-10 $0 $350.00 Comenity Bank Limited May-10 $0 $450.00 Comenity Bank Ann Taylor May-10 $105.00 $2,310.00 Comenity Bank NY&Co May-10 $0 $820.00 Best Buy Rewardzone May-10 $0 $300.00 Comenity Bank Victoria Secret Jun-10 $0 $450.00 Merrick Bank Jun-10 $597.00 $1,300.00 Barclays Bank Delaware Aug-14 $1,010.00 $1,700.00 Comenity J. Crew Nov-14 $0 $300.00 Comenity Bank Express NEXT Nov-14 $0 $500.00 Navy Federal Credit Union CashRewards Nov-14 $0 $10,000.00 This is a decent set of cards, balances are in control. You have no balances on the store cards. You might consider closing several of them.
Keep the Credit Cards open, especially the older Capital One cards.
You aren't using the NFCU Cash Rewards line/card? Can you do a balance transfer to that? If so, transfer $500 from the Barclays Bank Delaware account. This puts a slight load on the NFCU account (you owe the money anyway, just using it more effectively in your balances). Not only that, but you aren't showing ANY utilization on the NFCU item, which I think is not helping your scores. This $500 transfer would put a 5% balance on that account, and start showing some payment activity. Pay it slowly.
Moving the $500 from Barclays changes that account from 60% utilization (quite high in FICO scoring) to 30%, a much better level. Then continue to pay it down slowly.
Pay the Merrick Bank to $400 or lower, this puts it from 45% util to 30% util. You could even BT $200 to NFCU to get this Merrick balance down. Then continue to pay this down slowly.
Pay the 2007 CapOne account to $200 and then continue to slowly pay it down.
The main focus of the above suggestions is to get each card at 30% or lower utiliziation, but STILL LEAVE A BALANCE that you are paying off slowly (at least minimum payments) over time. Credit building takes time, and it takes showing payments. I think you've got the foundation to show good payment history, although I can't say how long it will take to raise scores. The other consideration is, AMEX probably wants to see consistent, on time payments and by using all these accounts in that way, hopefully your story will read well for them, even if you are only in the mid-high 600s at the time you app.
T
Good luck!
There is no need to pay anything off slowly, doIng that is just throwing away money in interest. Pay off everything right away and let at least 1 card report a small balance each month. Your credit report shows only "paid as agreed" wether you actually make a payment or not.
I think if you are communicating to AMEX through your payments, it is a different strategy than just optimizing FICO score. AMEX doesn't just look at FICO, they look at payment history, payment pattern. Do I have a definite quote source for that? No, but it seems to be their result, their YMMV adjustments to different applicants.
It is always best to PIF and avoid interest charges. I think it is irresponsible to advise someone to do otherwise. It is pretty widely accepted that American Express frowns upon making min payments. Personally I think that can get overblown but you are suggesting that they would prefer to see customers carry balances and pay over time. I don't think there will be many who agree on this. No one is looking at the payment amounts on your credit report unless there is a balance and want to see if it is being paid off.
True, each person must decide how much debt they want to have and how much interest is too much.
The cards in the original post have balances, so taking that existing model, the best next step is to ensure they are each under 30%. The balances (as noted above) are also on 0% APR offers, which is a different situation than running up charges on a 19% card. If on a 0% offer, it is an excellent time to show "payment history".
AMEX likely does frown on making minimum payments, but you'll note my suggestion was not to make minimum payment but to pay slowly, to allow the payments to register.
And I do think it makes a difference when a lending officer looks at a credit history to see payments. The bank is a business, and they are looking for an opportunity to make loans that will result in payments over time and interest income back to the bank, whatever that lending institution is. To not play to this business model is to miss some relationship building.
I don't deny that having no balance and having only one show a balance is a good way to go, I just think it is too much analysis and account management for the average person, who just wants to be able to pay over time. There is benefit to the time value of money, particularly for certain purchases that cannot be PIF, that is why people pay insterest charges.
To ignore this time value of money, and to think everything can be PIF, is to miss the major reason credit exists in the first place.
Cheers!