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Which Choice is the Right One? You decide

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Anonymous
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Which Choice is the Right One? You decide

Hello,

 

My name is Beth, I'm 27 year old got my first card 5 year ago and have been working on my credit score for the last year. (please look below for all my current scores and cards information)

 

I want to get Lasik done on my eyes and I need help deciding on how to pay for it. The bill would be 3.4k for both eyes which is a great price, and I asked and the price will not expire so I have time to make a decision.

 

Things I want to do:

 

***Increase the CL on My American Express Cash card from 13k to an even 20k or higher? (had it increased from 6.5k to 13k on 08/2015) the wait time is up and i can try to increase my CL again.

 

****Take out a loan to help my Account Mix currently have 5 Revolving Credit, 1 Student loan. I got an from Discover personal loans offer that expires on 3/29/2016 for up-to 30k with 6.99% to 18.99%. Which I would take out a loan for 3k and I did research would be 8.99 APR and I plan to pay it off in less than a year and there is no prepayment penalties. WOOT

 

**** Get a new Card, Current CC offers i got in the mail:

Citi Simplicity Card 12.99% APR 0 % for 21 months (no late fees, no penalty rate and no annual fee not a problem for me because i always pay my account on time ) I like the 21 months free APR if I pick this card I won't need a new card for almost 2 years Smiley Very Happy  Expires: 3/15/2016

 

Ctit Double Cash Card 13.99% APR 0% for 18 months (earn 1% unlimited cash back on every purchase you make, then earn an additional 1% cash back on payments) so 2 % back not bad but i don't ever go over 50 bucks on my new cards a month  Expires: 3/15/2016

 

Citi ThankYou Preferred Card 14.99% for 0 for 18 months (2x ThankYou  Points per dollar spent on purchases for dining at restaurants and entertainment. 1x ThankYou Point per $1 spent on other purchases)  I could add this card to my fandango account and get points when i go to the movies  Expires: 2/15/2016

 

Please note: I still have 0% APR on American Express EveryDay CL:5k till 05/2016 so I don't know if I should wait then get a new card?

 

Choices:

 

  1. Put the full amount on AMEX Cash Card for 3.4k and pay 10.49 APR 15% of my cards  utilization (not get a new card waiting till after may and not getting a loan or increase on my card)  
  2. The Doctors office told me about CareCredit for 0% APR for 24 months, but i read they have really bad customer service and i don't want to add them as new credit card that I can only use on medical stuff.
  3. Get the loan from Discover for 3k and pay it off in less then a year at 8.99 APR, which will help me with my Account Mix. Smiley Very Happy (not get a new card waiting till after may and not increase on my card) 
  4. Put the 3.4k on my American Express EveryDay CL:5k  at 0 APR till may then 17.24% but i use more than 60% of my cards utilization.
  5. Get new card and hope the CL is high enough to not hurt my utilization
  6. This is the big one, i would try to do this all in one day: Increase my CL on my AMEX card, ask for the loan and apply for one of the Citi cards and then my scores will drop like a rock, but i would need to use for my score for another 2 years
  7. What do you think there is another choice I just haven't thought of it that why I came to MyFico.

*I know most of these changes will drop or increase my score I just want the best option that help me in the long run when I try to buy a house in 3 years (think of the advice you would give yourself 5 year ago about your credit score.) I don't care if drops because I not planning on buying a car for another 2  year or a house for 3-4 years. I am ok with taking a hit so my scores can become stronger.  

 

Thank you for taking the time to read and help me, also sorry for any spelling or grammar mistakes.

 

Free Scores via Site: AMEX (760), Credit (774), Credit Karma (768), Discover (765), Mint (724)

 

Student Loan Start:12,700 Current:6,400 APR:3.4%| Opened: 10/2010

BOA Power CL:1.5k  APR:17.24%| Opened: 07/2011

Amex Blue Cash CL:13k  APR:10.49%| Opened: 07/2014

Discover IT CL:3550k  APR:12.24%| Opened: 10/2014

Amex EveryDay CL:5k  APR:17.24%| Opened: 02/2015 says 2014 on report

BOA Better Balance CL:1.5k  APR:13.24%| Opened: 04/2015

 

0 Late Payment

6% Debt to Limit Ratio

9 mo. Youngest Account - 63 mo. Oldest Account

5 Revolving Credit -1 Student - 0 Auto/Mortgage

5 Total Inquiries

 

Paid Score: CreditCheckTotal FICOScore8 Experian {771}, Transunion {773}, Equifax {765} Update: 2/5/16

Factors helping your score: No missed payments, Low credit usage, Recent credit card use, No collection or PR

Factors hurting your score: Short credit history

 

Message 1 of 3
2 REPLIES 2
takeshi74
Senior Contributor

Re: Which Choice is the Right One? You decide


@Anonymous wrote:

I know most of these changes will drop or increase my score I just want the best option that help me in the long run when I try to buy a house in 3 years (think of the advice you would give yourself 5 year ago about your credit score.)


Revolving utilization doesn't have a long term impact.  If your revolving utilization increases enough you'll see a score decrease.  If it decreases enough you'll see a scoring increase.  Revolving utilization is determined based on balances and limits as indicated on your reports at time of consideration.

 


@Anonymous wrote:

Take out a loan to help my Account Mix currently have 5 Revolving Credit, 1 Student loan.


Credit Mix is typically 10%.

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

Don't open an account just for scoring purposes.  Open one based on your financial needs.  If you have a student loan you already have an installment and adding another won't provide much, if any benefit.

 


@Anonymous wrote:

Put the 3.4k on my American Express EveryDay CL:5k  at 0 APR till may then 17.24% but i use more than 60% of my cards utilization.


 How long would it take you to pay it down?  Short term high utilization generally isn't an issue.  It's prolonged high utilization that can lead to adverse action.  You'd see a scoring impact from the high utilization but your scores will recover as you utilization decreases.

 


@Anonymous wrote:
  1. This is the big one, i would try to do this all in one day: Increase my CL on my AMEX card, ask for the loan and apply for one of the Citi cards and then my scores will drop like a rock, but i would need to use for my score for another 2 years
  2. What do you think there is another choice I just haven't thought of it that why I came to MyFico.

Try the AmEx CLI.  We can't tell you what you'd qualify for whether it's the CLI or a new card.  It all depends on what your credit profile and income qualify for.

 


@Anonymous wrote:

Free Scores via Site: AMEX (760), Credit (774), Credit Karma (768), Discover (765), Mint (724)  


Always keep the specific scoring model in mind as well as relevance to creditors/products.  The EX FICO 8 provided by AmEx is only relevant to creditors/products that use that specific score.  CK's TU and EQ Vantagescores are only relevant to creditors/products that use those scores.  Discover provides a TU FICO 8.  I don't recall what Credit.com and Mint provide.

 


@Anonymous wrote:

Paid Score: CreditCheckTotal FICOScore8 Experian {771}, Transunion {773}, Equifax {765} Update: 2/5/16 


Also keep in mind that a FICO 8 is a FICO 8.  If you're already getting an EX FICO 8 from AmEX and a TU FICO 8 from Discover then the only benefit CCT is providing as far as scores are concerned is the EQ FICO 8.

Message 2 of 3
stellar
Established Contributor

Re: Which Choice is the Right One? You decide

Well I think it's better to pay 0 interest rather than throw money away on interest.  So any of the Citi cards or the Carecredit card would be my choice.  You already have a loan so you don't really NEED a loan to help your credit mix.  I think with your scores you would get enough of a limit to keep the utilization low.

Message 3 of 3
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