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is there a direct link between lower cls= lower scores?

as i am in the credit repair process, i tend to use my cards with lower limits. i am concerned that eventhough my cards have a stopless payment history, and i pay a lot per month...i think i may be better off using my debit card because of the utilization issue? the cards are currently reported with the following balances:
 
national city: $480 of $600 cl
 
wells fargo: $450 of $500cl
 
capital one: $600 of $500cl
 
capital one: $650 of $600cl
 
capital one: $1,995 of $2,000cl
 
 
should i continue to use them and just worry about the payment history? my main focus has been paying off old accounts that are charged-off like Amex. but it seems like they are already charged-off so maybe i should worry about the utilization on the new accounts?
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Re: is there a direct link between lower cls= lower scores?


CreditDrama85 wrote:
as i am in the credit repair process, i tend to use my cards with lower limits. i am concerned that eventhough my cards have a stopless payment history, and i pay a lot per month...i think i may be better off using my debit card because of the utilization issue? the cards are currently reported with the following balances:
national city: $480 of $600 cl
wells fargo: $450 of $500cl
capital one: $600 of $500cl
capital one: $650 of $600cl
capital one: $1,995 of $2,000cl
should i continue to use them and just worry about the payment history? my main focus has been paying off old accounts that are charged-off like Amex. but it seems like they are already charged-off so maybe i should worry about the utilization on the new accounts?





looks like you may want to pay down both cap one's that are over the limit. If you are not paying in full each month then definitely stick to a debit card for now and focus on paying balances down.

If you actually PIF then try to pay as you go. For example on Fridays I pay what is owed online. This helps for a "Large" amount not to post to CR's. It works. I went from good on utilization to GREAT! I am currently at 2%. You just have to watch what is reporting.

But again if you are not PIF'ing then definitely switch to the debit card and PAY, PAY, Pay those cards down.

HTH
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Re: is there a direct link between lower cls= lower scores?

Stop charging now. Or at least pay online every week every bit you've put on them. Two Cap One cards are over the limit, and the third is maxed. You're going to have the axe fall soon if you don't reduce them drastically.

Simply switching to a debit card without serious and immediate balance reductions on your CC's isn't going to help.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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Re: is there a direct link between lower cls= lower scores?

[ Edited ]
The charged-off accounts that show a balance are killing your util, continue paying those. Also, I would try to pay down your Cap1 cards and see if you could combine them into 1. Cap 1 is pretty good about doing that. That'll give you one card with a decent CL


Message Edited by ralbusta on 08-09-2008 04:43 PM
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Re: is there a direct link between lower cls= lower scores?

i think the charge-off stats us what is hurting , not that there is a balance. Amex has it reported as high balance/ cl of $3,783 ; current balance: $528; payment terms: 1 month; status: account closed at consumers request, charge-off.
 
then there is another amex account with a high balance of $3,001 and a current balance of $0 and it says "paid account/was a charge-off".
 
i think these Amex accounts is what the problem is. both of them are from Dec 2005. are they still effecting my score?
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Re: is there a direct link between lower cls= lower scores?

They are affecting your score, both in terms of UTIL and the CO status.
 
Get them PIF, and ask AMEX to particpate in the Oasis program. That will return the accounts to good standing and clean history.
 
In terms of UTIL you definitely need to get your current CCs paid down below 10%. Stop using them so much. Pay them down and only have one maybe two report a small balance every month.
6/16/08 EQ-632
8/1/08 TU-717 EQ-690 EX-696
9/6/08 EQ-711
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Re: is there a direct link between lower cls= lower scores?

i had great history with amex before the charge offs. and they offered me the option on the charge cards to revolve any balance greater than $200. i always paid more than the minimum.
 
then, one day i got a letter saying my accounts were being reviewed for cancellation. naturally i just closed them to avoid the "closed by cred grantor" notation. amex did not honor the revolving status that i had had for 1 year at that time, and demanded payment in full. that is how the accounts became a charge off.
 
i did call and inquire about the oasis program. i got a lady that was very rude and told me that that program was by solicitation only and that if i wasnt invited the answer was no.
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Re: is there a direct link between lower cls= lower scores?



CreditDrama85 wrote:
as i am in the credit repair process, i tend to use my cards with lower limits. i am concerned that eventhough my cards have a stopless payment history, and i pay a lot per month...i think i may be better off using my debit card because of the utilization issue? the cards are currently reported with the following balances:
 
national city: $480 of $600 cl
 
wells fargo: $450 of $500cl
 
capital one: $600 of $500cl
 
capital one: $650 of $600cl
 
capital one: $1,995 of $2,000cl
 
 
should i continue to use them and just worry about the payment history? my main focus has been paying off old accounts that are charged-off like Amex. but it seems like they are already charged-off so maybe i should worry about the utilization on the new accounts?


Pay those balances down, you are over the limit on 2 of the cap ones and maxed on the other. Actually you are maxed out on all of your cards. I would hit those with some big time payments before they possibly get nervous and close you down.

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