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New Visitor
Posts: 2
Registered: ‎04-30-2009
0

get a new credit card, or wait?

Not sure if I should just stick with these 3 cards, or pay off Merrick (can pay in full in June), cancel the card, and find a better one.

 

Merrick Bank $755 balance/$950 limit 24% interest

Capital One   $450 balance/$500 limit16% interest

First Premier  $0 balance/$400 limit     10% interest

 

 

Yes, I know...the revolving debt needs to come down. 

 

credit scores:

TU 596 4/30/2009

EQ 561 4/30/2009

 

Any suggestions would be greatly appreciated!

Senior Contributor
Posts: 4,214
Registered: ‎09-12-2008

Re: get a new credit card, or wait?

What are your open dates?

 

If you PIF, then APR won't affect you.  You can use it as a "debit" card and PIF each month.  Closing an account with only 3 accounts usually is not a great strategy unless there are other substantial fees, like annual fee, program fee, statement fees, etc.

 

Yes, PIF in June, then don't run the balances up unless it is something you can pay cash for at statement.

 

 

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
Frequently Requested Threads * FICO High Achievers  *  FICO Score Estimator


09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
New Visitor
Posts: 2
Registered: ‎04-30-2009
0

Re: get a new credit card, or wait?

The merrick bank and capital one accounts have both been opened for appx 2 years, while the premier bank card is only 3 months old.

 

Merrick bank refused to lower my interest rate or raise my limit (I called them this morning), but from what I've read on the forums they've been treating everyone this way.They are charging me a $48 annual fee. All three of these cards have an annual fee...they're post bankruptcy training wheel cards.

 

So if my score goes up 20 - 40 points and I'm eligible for a better card, I should still keep the merrick card for the sake of account length of history? I don't mind the annual fee if the card is helping my score right now. Beggars can't be choosers. 

 

Thanks for your solid advice John!

Senior Contributor
Posts: 4,214
Registered: ‎09-12-2008

Re: get a new credit card, or wait?

If Merrick is your oldest account, and is beyond 2 years, I would continue to pay the AF for another couple years just to extend the TL on your CR.  Remember that it will purge off your CR 10 years from close.  So, if you wait another 2 years before considering closing, you have 12 more years of it being a reference TL and adding to AAoA.

 

Just stop keeping a balance and the APR is moot point.  24% is not where you want to park them :smileyindifferent:

 

For now, the CL is not the factor, it is the TL, OPEN account with payment history and aging.  Just think back to when you got the account....you were plenty pleased then, right?  So don't forget its value, which was "building back" value.  Eventually it will not be your general use account, it will only serve as your "oldest account" and AAoA benefactor.

 

Put your phone bill auto pay on it, then put in the SD.  Just be sure to PIF.  :smileyhappy:

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
Frequently Requested Threads * FICO High Achievers  *  FICO Score Estimator


09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549

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