Should I close my loan shark credit cards for a major bank secured credit card?

[money_talks]

From what I've read and learned, FICO does not have a virtual memory of past performance with UTL. From what I gather your scores are in the high 500s, correct? It all depends on what you want to apply for. IME, lenders are more apt to approve individuals with higher scores, 620 being the min.

I guess where I am going with this is, after my FP balance reports to the credit bureaus, I will have a new score with a lower Util since last month.

For example:

July 1st score = 588

-Credit One Util = 95%

-FP Util = 25%

August 1st score = 600 (just using this as an example)

-Credit One Util = 9%

-FP Util = 0%

 Sept 1st score = 600 or higher than 600??

-Credit One Util = 9%

-FP Util = 0%

Hope I am being clear on what I'm asking. If you are saying FICO has no memory of past performance for Util, then if when I check my score on Sept 1st and everything remains the same in my credit report as on August 1st, will the score remain at 600 then? In that case, I should not wait to apply, right?

Thanks!

[lhcole77]

The score could go up between August and September as accounts age and more positive payment history is reported.

In all honesty, though, a score of 588 or 600 seems too low to qualify for a decent card.

Back to original question though, you could qualify for a secured card from a bank or credit union, though it's not guaranteed.

Have you tried any pre approval sites?

[money_talks]

I have not tried any pre-approval sites. Do these inquiries affect my score?

Is there a thread in this forum where I can find those sites?

Thanks!

[lhcole77]

Check Citi, Cap 1, BofA, Chase and Barclays

It will not affect credit to check for pre approvals

[money_talks]

My FP payment posted so now I have a $0 balance.

I posted a thread for the question below. It should help many other people in the same situation.

One thing I am concerned about though.

FP will charge the monthly fee when the statement closes. Does FP allow you to make a payment beyond a $0 balance? I want the card to report a $0 balance to the credit bureaus. Otherwise it will show I have a $6.50 balance due to the monthly fee.

[Creditaddict]

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@money_talks wrote:

My FP payment posted so now I have a $0 balance. One thing I am concerned about though.

FP will charge the monthly fee when the statement closes. Does FP allow you to make a payment beyond a $0 balance? I want the card to report a $0 balance to the credit bureaus. Otherwise it will show I have a $6.50 balance due to the monthly fee.

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close it now, they should credit back the fee... worse case it reports $6.50, next month it will update $0

[OptimalCS]

IMO you should keep these cards until your baddies age. Then you will be able to get better card offers (cards with no AF and unsecured)

FP and CO are not great cards but they do their jobs. I had both at one point and dumped them when my scores got better.

[money_talks]

close it now, they should credit back the fee... worse case it reports $6.50, next month it will update $0

Based on the advice received in this thread, I've decided to close the FP until I get a secured card from a major bank. Credit One might get the axe down the road.

IMO you should keep these cards until your baddies age. Then you will be able to get better card offers (cards with no AF and unsecured)
FP and CO are not great cards but they do their jobs. I had both at one point and dumped them when my scores got better.

In addition to the advice in this thread, I've read a lot of FP and Credit One "Should I close this card" threads. It seems the general consensus is that once these shark cards have helped you re-establish good credit and also give you the opportunity to get better cards, you should close them. The comment that best sums this up is the following:

Alcibiades wrote: The problem is that these card companies don't want to grow with you as your credit gets better, so you essentially have to kick them out as quickly as possible. It doesn't make much sense, for example, to have banks like First Premier and Household charging peope $25 for $100 credit limits when banks like Chase, Discover, etc are giving the same individuals thousands in new credit. The First Premiers of the world should quickly adjust their fees, credit limits, etc as your credit improves. Instead, their goal is to extract every possible penny out of you until you shred their cards.

Comment posted in:

http://ficoforums.myfico.com/t5/Credit-Cards/FINALLY-fired-First-Premier-Bank-D/td-p/951034/page/2

[money_talks]

Update:

Applied for for a BOA unsecured card today in person. The banker printed out a page that reads "Your credit application is in process. Provide applicable printable customer handout. Inform customer to call 1-800-546-6649 to check on the status of their application at least 2 hours after they apply. For best service, advise them to call Monday-Friday, 9am-7pm Eastern time"

Is this normal when applying at BOA? Is this a good thing or bad thing as far as getting approved?

[myjourney]

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@money_talks wrote:

Update:

Applied for for a BOA unsecured card today in person. The banker printed out a page that reads "Your credit application is in process. Provide applicable printable customer handout. Inform customer to call 1-800-546-6649 to check on the status of their application at least 2 hours after they apply. For best service, advise them to call Monday-Friday, 9am-7pm Eastern time"

Is this normal when applying at BOA? Is this a good thing or bad thing as far as getting approved?

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What time is it there?