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Mega Contributor
LS2982
Posts: 15,434
Registered: ‎04-09-2011
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Re: Should I close these cards.....struggling to understand utilization...PLEASE help???


Missy_Bell wrote:

I am recovering from a Chapter 7 that was filed in mid 2009.  I have been very successful in rebuilding my credit and now have options. Yippie!!

 

I have a card with Credit One Bank with a $700 limit which I opened up in early 2010 when I was struggling with credit issues. The monthly fee for this card is $8.25 plus a min. interest charge of $1...So, I bitterly pay $9.25 in fees whether I use this card or not. I pay off any outstanding balance immediately and do not owe a balance at this time on this card. I was recently approved for a $500 card with Citibank and it has no fees.....I was thinking I should close the Credit One card to avoid paying fees now that I have the Citibank card. But I am concerned that closing the Credit One card will hurt my score since it is older than the Citibank card. Please advise what I should do. 

 

I also have a secured card with NFCU with a $500 credit limit also opened in early 2010.  I have another card with NFCU with a $3000 limit opened in 2011 that now has a $1516 balance. I was thinking of having the $500 secured account closed and applying the $500 deposit to the  $1516 balance which would be reduce it to about $950 after the recent payment I just made.  I would appreciate help in figuring this out as well. 

 

I do not have a clear understanding of utilization and all of that and I would appreciate any help you guys can give me.  You have been awesome in helping me rebuild my credit thus far after my BK and I thank you so much!!!!! 

 

 

 

 


Shut down Credit One!!! They are not worth the fees!!

 

You should keep your overall Util. around 1-9% for the best possible FICO point increases.




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Senior Contributor
bichonmom
Posts: 3,318
Registered: ‎05-05-2011
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Re: Should I close these cards.....struggling to understand utilization...PLEASE help???

It sounds like you closed the secured Credit One, which ITA. The fees are astronomical. I hate that CCCs are punitive towards rebuilders like that.

 

Re the NFCU, I'd talk to them about graduating it to an unsecured CC. If I recall correctly, Navy doesn't graduate their secured cards, but I'm not 100% sure. If it can graduate, then I'd keep it open. If not, then I think you can go ahead and close it and apply the deposit to your other Navy card.

 

The one thing that I think is important to address is that you're carrying a 50% balance on Navy. I'm not sure if this is a cumulative balance that you're paying down monthly, or if it just your monthly charges that you will be PIF by the due date. One of the hardest hits to your FICO is util. You need to keep your CCs at zero balances, with only one reporting @<9% for the best FICO. (That's 9% of the ONE CC you have a balance on, not 9% of your total CL for all of your CCs.)

 

Also, if you start carrying balances, you're going to find other CCs won't approve you -- if and when you decide you want to app for a new CC. Also, your current CCs will be softing you and it is important for them to see that you're handling your credit responsibly. They get nervous when they see high balances, especially since you only have a couple of CCs.

 

You have Citi @ $500, Navy @ $500 and Navy @ $3000 w/a $1500 balance. That is VERY high util, not just for the single Navy card, but for your overall util. Your total CL is $4k. $1500 is nearly 40% util. That's a lot, especially since you're so recently out of a BK. If you want to get CLIs and build a portfolio of prime CCs, you should focus on getting your util down.

 

 

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Edits, funky spacing and spelling due to my iPad not getting along with the forum editor!

Established Contributor
amercnchopz34
Posts: 839
Registered: ‎10-28-2011
0

Re: Should I close these cards.....struggling to understand utilization...PLEASE help???


bichonmom wrote:

It sounds like you closed the secured Credit One, which ITA. The fees are astronomical. I hate that CCCs are punitive towards rebuilders like that.

 

Re the NFCU, I'd talk to them about graduating it to an unsecured CC. If I recall correctly, Navy doesn't graduate their secured cards, but I'm not 100% sure. If it can graduate, then I'd keep it open. If not, then I think you can go ahead and close it and apply the deposit to your other Navy card.

 

The one thing that I think is important to address is that you're carrying a 50% balance on Navy. I'm not sure if this is a cumulative balance that you're paying down monthly, or if it just your monthly charges that you will be PIF by the due date. One of the hardest hits to your FICO is util. You need to keep your CCs at zero balances, with only one reporting @<9% for the best FICO. (That's 9% of the ONE CC you have a balance on, not 9% of your total CL for all of your CCs.)

 

Also, if you start carrying balances, you're going to find other CCs won't approve you -- if and when you decide you want to app for a new CC. Also, your current CCs will be softing you and it is important for them to see that you're handling your credit responsibly. They get nervous when they see high balances, especially since you only have a couple of CCs.

 

You have Citi @ $500, Navy @ $500 and Navy @ $3000 w/a $1500 balance. That is VERY high util, not just for the single Navy card, but for your overall util. Your total CL is $4k. $1500 is nearly 40% util. That's a lot, especially since you're so recently out of a BK. If you want to get CLIs and build a portfolio of prime CCs, you should focus on getting your util down.

 

 


Should u let the 9% actually show past the statement date?

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FrugalRican
Posts: 2,876
Registered: ‎02-02-2012
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Re: Should I close these cards.....struggling to understand utilization...PLEASE help???


amercnchopz34 wrote:

bichonmom wrote:

It sounds like you closed the secured Credit One, which ITA. The fees are astronomical. I hate that CCCs are punitive towards rebuilders like that.

 

Re the NFCU, I'd talk to them about graduating it to an unsecured CC. If I recall correctly, Navy doesn't graduate their secured cards, but I'm not 100% sure. If it can graduate, then I'd keep it open. If not, then I think you can go ahead and close it and apply the deposit to your other Navy card.

 

The one thing that I think is important to address is that you're carrying a 50% balance on Navy. I'm not sure if this is a cumulative balance that you're paying down monthly, or if it just your monthly charges that you will be PIF by the due date. One of the hardest hits to your FICO is util. You need to keep your CCs at zero balances, with only one reporting @<9% for the best FICO. (That's 9% of the ONE CC you have a balance on, not 9% of your total CL for all of your CCs.)

 

Also, if you start carrying balances, you're going to find other CCs won't approve you -- if and when you decide you want to app for a new CC. Also, your current CCs will be softing you and it is important for them to see that you're handling your credit responsibly. They get nervous when they see high balances, especially since you only have a couple of CCs.

 

You have Citi @ $500, Navy @ $500 and Navy @ $3000 w/a $1500 balance. That is VERY high util, not just for the single Navy card, but for your overall util. Your total CL is $4k. $1500 is nearly 40% util. That's a lot, especially since you're so recently out of a BK. If you want to get CLIs and build a portfolio of prime CCs, you should focus on getting your util down.

 

 


Should u let the 9% actually show past the statement date?

You can pay it off the day after or even the day right before the due date, just as long as you PIF before the due date.

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