need some help rebuilding my credit

[dangerdave]

OK.  I've read through the forums and I'm even starting to get used to the lingo.  I have a few questions that I can find specific answers so I thought I'd throw this out there and let you guys give me some direction...  I need it.

I have 4 negatives that I'll need to work on. A couple medical and a couple collections.  I think I have enough information to go after those.

Right now I need some help with revolving accounts.  Below is what I have...

Household bank - CL - 500.00 Bal 201.56 12/04
Cap One - CL - 1,000 bal 80.46 12/03
Cap one - CL - 500 - bal 399.52 8/05
Midas card CL 800.00 bal 0

AU on wife's discover 4500 8/10

I just applied for a discover card for my wife and she got approved for 4500 and added me as an AU

1. Does it help me that I'm an AU on her account? Does that effect my ratio of debt vs. available credit (UTIL)

2. Does the midas card even count as a revolving card since it is not a cc.  Should I just leave it as paid and put it in the sock drawer?

3. The 3 other lines of credit I'm working on paying down.  Is it smart to pay them to 0 and put them away or should I keep a 9% to 12% util on them?  Use them once a month for small items that I can pay off at the end of the month?  Can 0% util be a bad thing?

I think that it for now but any questions or suggestions would be very helpful.  I'm new to this and I'm in for the long haul so that for the help and guidance.

DAvid

[Creditaddict]

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@dangerdave wrote:

OK.  I've read through the forums and I'm even starting to get used to the lingo.  I have a few questions that I can find specific answers so I thought I'd throw this out there and let you guys give me some direction...  I need it.

I have 4 negatives that I'll need to work on. A couple medical and a couple collections.  I think I have enough information to go after those.

Right now I need some help with revolving accounts.  Below is what I have...

Household bank - CL - 500.00 Bal 201.56 12/04
Cap One - CL - 1,000 bal 80.46 12/03
Cap one - CL - 500 - bal 399.52 8/05
Midas card CL 800.00 bal 0

AU on wife's discover 4500 8/10

I just applied for a discover card for my wife and she got approved for 4500 and added me as an AU

1. Does it help me that I'm an AU on her account? Does that effect my ratio of debt vs. available credit (UTIL)

2. Does the midas card even count as a revolving card since it is not a cc.  Should I just leave it as paid and put it in the sock drawer?

3. The 3 other lines of credit I'm working on paying down.  Is it smart to pay them to 0 and put them away or should I keep a 9% to 12% util on them?  Use them once a month for small items that I can pay off at the end of the month?  Can 0% util be a bad thing?

I think that it for now but any questions or suggestions would be very helpful.  I'm new to this and I'm in for the long haul so that for the help and guidance.

DAvid

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1. The au will help with your util a lot.

2. The midas card as long as a credit line is reported to credit it will help you. some store cards only report highest balance though which depending how much you have had on it before, will help.

3. I would pay them all to 0 and then use them and keep them below 9% and pay when statement comes in full so you don't pay interest.  If you need to use more of your CL, just make an extra payment before the statement cuts to bring balance below 9%

[RobertEG]

The AU card counts in your scoring the same as if was your own card.  A big benefit.  Without it, your % util would be 36%, while with it, your % util is 11%.

While no one knows the details of the FICO scoring algorithm, it is my understanding that store cards dont have as much impact as major bank cards.

With what you have reported, my most immediate acction would be to reduce util of Cap1 card #2,  At 80% current util, it is impacting your score to a significant level.

As for usage of your cards, I would use each once every few months just to assure its remainder in your CR.  You dont have to carry a balance, just use them and pay them.

As for maintaining 0% vs. 9%, that is a very fine tuning of your scoring.  It is not material until around two months until you are ready to apply new credit.

I would not be too concerned about that issue from month to month until it matters.

[dangerdave]

Thanks for the helpful info!

David