Rebuilding Your Credit

[JasonBourneOfCredit]

Jan, 2010 I couldnt get approved and had to get a secured cc to get life back on track.

Now I just got my first unsecured Orchard. I heard low credit limits can hold you back so should I cancel this secured card? My only other revolving is a store card, $800cl and a Orchard $300cl.

At what point do you cancel these low limit secured cards?

thanks

[Gotons]

What type of card is it and how long have you had it?

Most (I think...) will allow you to graduate your secured card to an unsecured card if it's treated well.  You might want to call the bank that you have the secured card with and see if they graduate it to unsecured.

**EDIT**

Just saw it was in Jan of 2010.  You might want to give them a call to see if they do graduate and how long you have to wait from the day you opened the card.

[JasonBourneOfCredit]

The card is with Public Savings Bank. No, unfortunately, it does not graduate. Its strictly secured.

[RobertEG]

The only advantage to closure is to avoid annual fees.  That does not appear to be an issue in your case.

Low credit limit cards are still revolving accounts  FICO does not score CL, it scores your % util of its CL.  The problem with low CL cards is that it is much easier to drive up their % util.

Just keep their % util down, and keep them open

IF you were to close both, you would have no revolving credit.  Not advisable.  Especially if you dont have installment lines of open credit.   Then you might end up with no FICO score at all.

[JasonBourneOfCredit]

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RobertEG wrote:

The only advantage to closure is to avoid annual fees.  That does not appear to be an issue in your case.

Low credit limit cards are still revolving accounts  FICO does not score CL, it scores your % util of its CL.  The problem with low CL cards is that it is much easier to drive up their % util.

Just keep their % util down, and keep them open

IF you were to close both, you would have no revolving credit.  Not advisable.  Especially if you dont have installment lines of open credit.   Then you might end up with no FICO score at all.

---

I have no problem keeping util down. I enjoy it, as a game, only charging around $10-15/month to keep it optimum. I dont actually need the card. Just using it to buid the score. Thing is, I just read somewhere that having low limits is hurting my score.

[RobertEG]

And I once read somewhere that ancient interrestial aliens supplied the knowhow to build the pyramid at Gaza, and that pet rocks can be your friend.

To forgo lower CL cards in credit rebuilding, when it is s fact that % util, and not the CL, is what FICO scores, is to me, just really bad advice.

They can help you move from a "thin" to a "thick" credit file, and meanwhile demonstrate, along the way, timely payment of revolving credit from month to month.

[JasonBourneOfCredit]

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RobertEG wrote:

And I once read somewhere that ancient interrestial aliens supplied the knowhow to build the pyramid at Gaza, and that pet rocks can be your friend.

To forgo lower CL cards in credit rebuilding, when it is s fact that % util, and not the CL, is what FICO scores, is to me, just really bad advice.

They can help you move from a "thin" to a "thick" credit file, and meanwhile demonstrate, along the way, timely payment of revolving credit from month to month.

---

This information is from, whats supposed to be, a reputable site. Freecreditreport.com

LINKY>>

http://s42.photobucket.com/albums/e303/wr200/?action=view&current=lowlimits.jpg

How bout them aliens?

[MarineVietVet]

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JasonBourneOfCredit wrote:

---

RobertEG wrote:

And I once read somewhere that ancient interrestial aliens supplied the knowhow to build the pyramid at Gaza, and that pet rocks can be your friend.

To forgo lower CL cards in credit rebuilding, when it is s fact that % util, and not the CL, is what FICO scores, is to me, just really bad advice.

They can help you move from a "thin" to a "thick" credit file, and meanwhile demonstrate, along the way, timely payment of revolving credit from month to month.

---

This information is from, whats supposed to be, a reputable site. Freecreditreport.com

LINKY>>

http://s42.photobucket.com/albums/e303/wr200/?action=view&current=lowlimits.jpg

How bout them aliens?

---

The recommendations from sites that sell FAKO scores (like FCR) are generally to be ignored just as much as the scores themselves.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".