Rebuilding / Boosting Score Plan

Anonymous · ‎12-21-2014

Hello all,

I've learned so much by reading some posts from the community. I wanted to ask about my particular situation. I'm currently in the 610 - 660 credit score range and I have recently gone on an app spree which I was approved for a new Amazon Visa / Walmart / Target / Pier 1 and Macys cards. I am paying off some remaining old medical collection accounts in January / February (total $1,500). I'm not going to apply for any more cards. My question is, how should I use my new cards to boost my score? Should I charge something each month and PIF once I receive the statement? Should I not use them at all? Any advice would be appreciated. I do have two other cards, one with Capital One and another with Credit One (both have a balance of $800 each) - the goal is to pay off and close the Credit One as they have an annual fee. Then I will work on paying off the Capital One, but will keep it open. I'm also an AU on a couple of my husbands cards.

Any advice for my situation would be appreciated.

Anonymous · ‎12-21-2014

If you could balance transfer the CreditOne and close it, Im sure it'd help you out w Interest.

Anonymous · ‎12-21-2014

I can transfer it to my new Amazon Chase Visa card, but I wasn't sure if that was the right thing to do. Ideally, I probably can't have it PIF until Spring 2015.

Anonymous · ‎12-21-2014

What is the APR on both?

Anonymous · ‎12-21-2014

Credit One 23.90% with an an annual fee (paid monthly $8.25)

Amazon Chase Visa 22.24%

Should I transfer the balance (which is now $650 - payment posted) to the Chase card? My credit limit is $2k on the Chase with nothing on it. Will I get another hit for closing the Credit One account? The annual fee is steep - it's my only card with one and now that I am approved for other cards, I feel like I don't need it anymore.

Imperfectfuture · ‎12-21-2014

Nixon was referring to 0% intro rate cards. You COULD apply for a quicksilver one with capital one, and they will give you a decent starting limit (indicate balance transfer) since you already have a cap one card. If you can handle another app, and maybe contact the EO office of cap one for manual review, you can transfer the balance over to the new card. You can also talk to them about other options in cards with 0% interest rate.

Signature needs updating

takeshi74 · ‎12-22-2014

Instead of trying to figure out specifics out of the blue you should look at the general strategies and then use that information to determine your tactics. The standard factors are:

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

Utilization (Amounts Owed) is really where you have the most control with the accounts. You don't want to exceeed 30% reporting. For optimal scoring the recommendation is allow only one balance to report at 10% or less. However, you don't need optimal scoring unless you're applying for something and looking to eke out every possible point.

Your derogs will tend to have a bigger impact (they affect your Payment History which is the biggest slice above) so you really need to focus on addressing those.

@Anonymous wrote:
Will I get another hit for closing the Credit One account?

Don't overlook the sitckies. This thread is linked in the Helpful Threads sticky:

http://ficoforums.myfico.com/fico/board/message?board.id=creditcard&thread.id=117125&jump=true

Anonymous · ‎12-22-2014

Trade one AF card for another with no significant bonus ?

Anonymous · ‎12-22-2014

@takeshi74 wrote:
Instead of trying to figure out specifics out of the blue you should look at the general strategies and then use that information to determine your tactics. The standard factors are:
http://www.myfico.com/crediteducation/whatsinyourscore.aspx

Utilization (Amounts Owed) is really where you have the most control with the accounts. You don't want to exceeed 30% reporting. For optimal scoring the recommendation is allow only one balance to report at 10% or less. However, you don't need optimal scoring unless you're applying for something and looking to eke out every possible point.

Your derogs will tend to have a bigger impact (they affect your Payment History which is the biggest slice above) so you really need to focus on addressing those.

@Anonymous wrote:
Will I get another hit for closing the Credit One account?
Don't overlook the sitckies. This thread is linked in the Helpful Threads sticky:
http://ficoforums.myfico.com/fico/board/message?board.id=creditcard&thread.id=117125&jump=true

Thank you so much for this information. This has answered all of my questions!

Anonymous · ‎12-22-2014

@Imperfectfuture wrote:
Nixon was referring to 0% intro rate cards. You COULD apply for a quicksilver one with capital one, and they will give you a decent starting limit (indicate balance transfer) since you already have a cap one card. If you can handle another app, and maybe contact the EO office of cap one for manual review, you can transfer the balance over to the new card. You can also talk to them about other options in cards with 0% interest rate.

This was a good idea. I never thought of applying for another Capital One card. I did the application for the Quicksilver card online and was instantly approved. I was told that I have to wait for the card to arrive in the mail and then I can transfer the balance and it's 0% interest until September 2015. Plenty of time to get it paid off. I will then be MORE than happy to cancel my Credit One card. Thank you!