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Established Contributor
CruzImperial
Posts: 863
Registered: ‎07-04-2012

Re: What to do....what to do???

Edit: if you are getting a mortgage, try not to close them yet. Old accounts do make a difference sometimes and the bank will be able to see where you started and where you are now:smileyhappy:
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shorrttyycm1
Posts: 392
Registered: ‎03-29-2011

Re: What to do....what to do???

O...will it matter how low the card limit is? Does even having it make some lenders cautious? Ik it sounds silly but i keep thinking that when i app they see merrick and orchard and it some how bias their decision to approve or at what limits :-()

Starting Score: 530
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Valued Contributor
navigatethis12
Posts: 1,881
Registered: ‎01-24-2012

Re: What to do....what to do???


CruzImperial wrote:
Since those are very tiny limits and your other cards are huge, I'd personally close them down. Anyone approving you in the future would be likely to grant you higher limits if you do imo

This is not always true. I have US Bank, Chase, and American Express at 1000 and First National Bank of Omaha granted a 10000 limit. Citi gave 5000 and 6500.

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shorrttyycm1
Posts: 392
Registered: ‎03-29-2011

Re: What to do....what to do???

Wow, that's a huge difference. I always thought the rule of thumb was smaller limits gets smaller limits? i guess its one of those ymmv things?

Starting Score: 530
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navigatethis12
Posts: 1,881
Registered: ‎01-24-2012

Re: What to do....what to do???


shorrttyycm1 wrote:
Wow, that's a huge difference. I always thought the rule of thumb was smaller limits gets smaller limits? i guess its one of those ymmv things?

Well, like you, I have multiple other cards with higher limits. No one, but the lenders, really know what they do to determine a credit limit. If you have a nice long history, with perfect payment history, and no inquiries, you are more likely to get a higher limit. Do not forget that income is also a facotr they take into consideration. I would close them only because of the annual fee. Maybe you can ring and try to get the annual fee waived? I believe someone said they were able to do that with Orchard Bank.

Frequent Contributor
shorrttyycm1
Posts: 392
Registered: ‎03-29-2011

Re: What to do....what to do???

Great i will give it a try...thnx for advice much appreciated!!

Starting Score: 530
3-2013Score: TU 680 EQ 683 EXP 679 FAKO
Current Score (lender pull): TU 693 EQ 649 EXP 699 Lender Pull
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Senior Contributor
drkaje
Posts: 3,482
Registered: ‎07-25-2008

Re: What to do....what to do???

Here's the thing: NavFed is really generous with its limits so they aren't really useful in judging creditworthiness. Please don't take that the wrong way but I've read tons of posts here where they gave people $5-6K limits where normal lenders would only trust them with secured.

 

Personally, I'd close any AF cards and garden for a year or more. From what we've read here, some lenders dislike re-builder credit card companies like Merrick. The good payment history will remain on record 10 years. Since they were only opened a few months apart the AOAA probably won't be affected too much.


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Frequent Contributor
shorrttyycm1
Posts: 392
Registered: ‎03-29-2011

Re: What to do....what to do???

Not offended...NFCU is generous and I have definitely benefited in that aspect..& cs is OUTSTANDING. but back to the post...
that's pretty much what i thought, like having merrick could actually hurt me on apps? I wish i knew for sure but as someone else posted u just dnt know.

Starting Score: 530
3-2013Score: TU 680 EQ 683 EXP 679 FAKO
Current Score (lender pull): TU 693 EQ 649 EXP 699 Lender Pull
Goal Score: 700


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Senior Contributor
Open123
Posts: 3,970
Registered: ‎02-23-2011

Re: What to do....what to do???


shorrttyycm1 wrote:
Not offended...NFCU is generous and I have definitely benefited in that aspect..& cs is OUTSTANDING. but back to the post...
that's pretty much what i thought, like having merrick could actually hurt me on apps? I wish i knew for sure but as someone else posted u just dnt know.

Two things:

 

1.  AF cards *only* make sense if you value the rewards or need it for a purpose, such as rebuilding.

 

2.  Some issuers--namely Amex--may decline an application if they see certain subprime creditors, such as First Premier.

 

All things being equal, there is *no* reason I can think to pay a fee for a small limit card once the rebuilding process is underway.  The sooner you purge them, the better off you will be in the future.

Senior Contributor
drkaje
Posts: 3,482
Registered: ‎07-25-2008

Re: What to do....what to do???


shorrttyycm1 wrote:
Not offended...NFCU is generous and I have definitely benefited in that aspect..& cs is OUTSTANDING. but back to the post...
that's pretty much what i thought, like having merrick could actually hurt me on apps? I wish i knew for sure but as someone else posted u just dnt know.

I'm glad you understood the intent!

 

I've seen a few threads where people were really confused about why company X wouldn't match their NFCU limits.

 


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