Need Advice-debt/credit ratio

[Anonymous]

I am trying to fix my credit, and have had perfect credit history for two years now with all payments made ontime.  However, in trying to pay my credit cards off over the past two years, most of them were closed including the ones I still owe on.  My credit report says they were (closed at consumer's request.)  I'm not totally sure about this because I never asked them to close any of the accounts I paid off.  My current credit score is 657 up from 549 a year and a half ago.  I am in the process of getting one charge off removed (which I settled 2010), and have payment plans set up for three other credit cards.  My credit report as follows states:

Credit Available:

$4,279

% of Credit Available*:

51%

Total Credit Limit:

$8,454

Capital One keeps sending me a pre-approved notice.  I owe Discover 4000 and have kept repeatedly trying to get a lower interest rate to pay off sooner and have been denied.  I only have ever had 60 days past due once in 2010.  As you can see, since most of my credit cards were closed (which had high credit limits $5000-$10000), I no longer have that high credit ratio in my favor.  Would it benefit me to apply for capital one, also while doing a balance transfer from Discover.  Discover is an open card, so my credit limit of $5500 will remain intact if I balance transfer. 

The other question I have is about credit inquiry's... I was recently approved for a Barclay card with $2600 CL.  Will another hard inquiry hurt my score if I apply for the capital one?  I do have recent inquirys in the past two years on my account such as:

VERIZON WIRELESS
( New phone carrier)	Inquiry Date	7/28/2012
	Business Type	Wireless Telephone Service Provider

KROLL FACTUAL DATA/060
(Mortgage Re-finance)	Inquiry Date	5/24/2012
(Spouse primary)	Business Type	Mortgage Reporters

MIDFLORIDA CREDIT UNIO
(Credit Union App.)	Inquiry Date	4/27/2012
(Spouse primary)	Business Type	Credit Unions

BANK OF AMERICA
(Payment plan was	Inquiry Date	11/28/2010
set up for cc)	Business Type	Bank Credit Cards

Barclay was very recent in September but it doesn't appear on my credit report yet.  I am not sure what is too many credit inquiries and if all of these are hard inquires.  Just wondering if applying for Capital One to do a balance transfer would benefit me at all since Discover isn't willing to work with me to lower my current interest rate of 29.99%

[Jutz]

Ugh.  That discover APR is ugly.  But the CL isn't.  The Cap1 pre approval is probably their standard Platinum card.  If I had to guess it won't be large enough of a CL to take your Discover balance, let alone put a dent in your utilization.  Unfortunately, I think the best plan is the one you already know...agressively pay down the Discover.  I wouldn't bother opening the Cap1 because it will hit you with an inquiry, lower you AAoA and (probably) not help your UTIL all that much.  It's not a card that grows with you either, so even long term it's not amazing.

What's your current total UTIL on revolvers?  Agressively pay it down over the next few months and you'll see steady gains in your score.  The new Barclay's card will help too.

Edit:  I should add, Verizon Wireless should only be a soft inquiry, and shouldn't be factored into your scoring.

[Shogun]

The inquiries don't hurt that much, you're probably taking a pretty good hit on your AAoA for new accounts.   I too would suggest paying down that Discover hard and heavy.  You get the util down and you will get a good bump.  Good Luck.

[rckstrscott]

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@Anonymous wrote:

I am trying to fix my credit, and have had perfect credit history for two years now with all payments made ontime.  However, in trying to pay my credit cards off over the past two years, most of them were closed including the ones I still owe on.  My credit report says they were (closed at consumer's request.)  I'm not totally sure about this because I never asked them to close any of the accounts I paid off.  My current credit score is 657 up from 549 a year and a half ago.  I am in the process of getting one charge off removed (which I settled 2010), and have payment plans set up for three other credit cards.  My credit report as follows states:

Credit Available:

$4,279

% of Credit Available*:

51%

Total Credit Limit:

$8,454

Capital One keeps sending me a pre-approved notice.  I owe Discover 4000 and have kept repeatedly trying to get a lower interest rate to pay off sooner and have been denied.  I only have ever had 60 days past due once in 2010.  As you can see, since most of my credit cards were closed (which had high credit limits $5000-$10000), I no longer have that high credit ratio in my favor.  Would it benefit me to apply for capital one, also while doing a balance transfer from Discover.  Discover is an open card, so my credit limit of $5500 will remain intact if I balance transfer. 

The other question I have is about credit inquiry's... I was recently approved for a Barclay card with $2600 CL.  Will another hard inquiry hurt my score if I apply for the capital one?  I do have recent inquirys in the past two years on my account such as:

VERIZON WIRELESS
( New phone carrier)	Inquiry Date	7/28/2012
	Business Type	Wireless Telephone Service Provider

KROLL FACTUAL DATA/060
(Mortgage Re-finance)	Inquiry Date	5/24/2012
(Spouse primary)	Business Type	Mortgage Reporters

MIDFLORIDA CREDIT UNIO
(Credit Union App.)	Inquiry Date	4/27/2012
(Spouse primary)	Business Type	Credit Unions

BANK OF AMERICA
(Payment plan was	Inquiry Date	11/28/2010
set up for cc)	Business Type	Bank Credit Cards

Barclay was very recent in September but it doesn't appear on my credit report yet.  I am not sure what is too many credit inquiries and if all of these are hard inquires.  Just wondering if applying for Capital One to do a balance transfer would benefit me at all since Discover isn't willing to work with me to lower my current interest rate of 29.99%

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Cap1 is not going to give you anything above, maybe at the most, a 2k limit.. plus at the best you will get what, a 17.99% with those scores? Not enough to offset an active paydown..

Just pay off the Discover.. you have a 657FICO with 49 percent util.. you will have a close to 700 once you get to below 10 percent util in my estimation..

Once you pay down the util, and then build the barclays and age it, you could probably apply for a real solid card

-scott

[Anonymous]

Thanks so much for the advice!!