After attending a mattress seminar today in NYC, and seeing the presentations of all the leading mattress companies, I decided to see what kind of response I would get by app'ing for a Tempur-Pedic line of credit, backed by Wells Fargo. I also did so because I don't have any history with Wells Fargo and wanted to get in the game with them, even if it's just with an account like this. I was approved for a $4.2K CL, and though I don't have any immediate plans on purchasing through them, I'd like to hear your opinions on the account. I've been using smaller cards to help build my credit over the past 3 or so years (for example, two very low limit cards (one Mastercard, one Discover) through HSBC that have typically stayed at $0 balance), but am wondering if it would be better to close these accounts now (since they carry annual fees) assuming they hurt my overall available credit limit. I know keeping accounts open and at $0 balance with a small purchase or two to stay active then PIF is the way to go, but when comes the point that a small rebuilder card like what I mentioned above hurts my chances of getting more prime CC's. I'm by no means at the level I want to be at (713 TU as of last week), but I don't want to plateau either.
myFICO Starting Scores: TU 643 03.10.09 EX 676 01.09.09 EQ 638 05.24.09
simonlarano wrote:After attending a mattress seminar today in NYC, and seeing the presentations of all the leading mattress companies, I decided to see what kind of response I would get by app'ing for a Tempur-Pedic line of credit, backed by Wells Fargo. I also did so because I don't have any history with Wells Fargo and wanted to get in the game with them, even if it's just with an account like this. I was approved for a $4.2K CL, and though I don't have any immediate plans on purchasing through them, I'd like to hear your opinions on the account. I've been using smaller cards to help build my credit over the past 3 or so years (for example, two very low limit cards (one Mastercard, one Discover) through HSBC that have typically stayed at $0 balance), but am wondering if it would be better to close these accounts now (since they carry annual fees) assuming they hurt my overall available credit limit. I know keeping accounts open and at $0 balance with a small purchase or two to stay active then PIF is the way to go, but when comes the point that a small rebuilder card like what I mentioned above hurts my chances of getting more prime CC's. I'm by no means at the level I want to be at (713 TU as of last week), but I don't want to plateau either.
I would apply and get replacement cards before I close them. Once you get your replacement cards, hurry up and close any AF cards.
(As you said you are building not re-building, I am assuming you have a thin file but no baddies. Anything I say after this line uses this assumption)
I would first try to app for something like chase freedom and a store card like GEMB (JCP/Walmart).
Once you have your chase/GEMB cards, you should add a third card (some master card for variety).
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