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Manage Three Credit Cards

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Anonymous
Not applicable

Manage Three Credit Cards

Hello the experts,
Here is my situation:
For 10 months I started working on my credit score: I started with a Chase Freedom for CL of $ 700 (today $ 2800), then I was approved for CapitalOne for 3 months (CL $500), and last week I tried Amex (Gold Delta SkyMiles) and I was approved with CL $ 5000 (I take Delta Airline as the preferred company for me).
My credit score is : TU 698 , EQ 702 and EX 697.
I think I will be able to request an increase of CL from March 2018.
I ask your opinions and your advice to manage well these three cards?
Do you think that CapitalOne will be useless for me? and so you advise me to close it?
if by obligation for a month, I will exceed the 30% of my CL, will that cause me a problem with my credit score?
What future credit card do you recommend or I will try to increase my CL without asking for a new credit card.

Thanks in advance

Message 1 of 21
20 REPLIES 20
Anonymous
Not applicable

Re: Manage Three Credit Cards

If you're looking to maximize your FICO scores, you'll want to implement the AZEO (All Zero Except One) technique, which means allowing 2 out of 3 of your credit cards to report a $0 balance while the 3rd reports a small balance.  You want this small balance to be 8.9% or less of the total credit limit.  This is usually easiest to accomplish with your largest limit card, as up to 8.9% can be a greater number over a smaller limit card, but it doesn't matter which card you use.

 

What matters is what balance reports to the bureaus, not how much of your limit you use.  Typically your statement balance is what gets reported.  So, for example, if your payment due date is the 17th and then on the 21st you typically have your new statement generated, whatever balance is on that statement is typically what will report to the bureaus.  If you use 30% of your credit limit on any card, that doesn't mean that 30% will necessarily report to the bureaus.  It all depends on the timing, when you spend/pay, etc.  Allowing 30% of your limit to report on any single card will adversely impact your score compared to allowing 8.9% or less to report. 

 

What type of Capital One card did you get?  If it's a standard Platinum, see if you can product change it to a QuickSilver, which would give you 1.5% back on all purchases.  That would make it more useful than your Freedom for everyday spend (non-category). 

 

If those are genuine FICO scores that you mentioned, you're on the cusp of achieving excellent scores.  With another 30-40 points, you're going to be in a great place where growing your cards will become much easier.  If you're not currently doing AZEO and depending on where your current utilization sits, you may not be far off from 730-740 scores right now if you just tweak a few things.

Message 2 of 21
HeavenOhio
Senior Contributor

Re: Manage Three Credit Cards


@Anonymous wrote:

Typically your statement balance is what gets reported.


OP, one of your cards is a Chase card. They report the statement balance as BBS mentioned. They also report zero whenever you pay to zero. I woudn't rely on this card to be the one to report the "small" balance because you're likely to zero it out at some point. All cards reporting zero will ding your score.

 

Also, FICO rewards you for less than half of your cards reporting a positive balance. That's impossible to achieve with less than three cards. For that reason, I wouldn't close anything right now.

Message 3 of 21
Anonymous
Not applicable

Re: Manage Three Credit Cards

The folks on this thread can help you best if you also tell them:

 

(a)  Do you have any derogatory marks on your reports?  This would include things like lates, collections, chargeoffs, public records, liens, bankruptcies, etc.

 

(b)  Do you have any open installment accounts?  Typically loans of any kind, though auto leases and consumer finance accounts are also examples.

 

PS.  You should certainly keep your Cap One account.

Message 4 of 21
Anonymous
Not applicable

Re: Manage Three Credit Cards

A) —> No
B) —> not yet
Okay for Cap One
Message 5 of 21
Anonymous
Not applicable

Re: Manage Three Credit Cards

You are the best thanks Smiley Happy
Message 6 of 21
Anonymous
Not applicable

Re: Manage Three Credit Cards

Yes you right about Chase .. thanks everyone
Message 7 of 21
Anonymous
Not applicable

Re: Manage Three Credit Cards

Since you do not yet have a loan of any kind, you should strongly consider implementing the Share Secure Loan Technique:

 

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Adding-an-installment-loan-the-Share-Secu...

 

You only need to read the first 2-3 posts of that thread.

Message 8 of 21
Anonymous
Not applicable

Re: Manage Three Credit Cards

Taking on a SSL as CGID suggests above typically yields one around 30 FICO points.  Doing that would put the OPs scores essentially to the excellent range, which should open many more credit-related doors.

Message 9 of 21
Anonymous
Not applicable

Re: Manage Three Credit Cards

Hey Guys
I received two letters this morning of pre-approval from BBVA Compass Clearpointsand CITI bank Double Cash .. what do you think the experts? (do not forget that I already have 12 INQ in my reports)
Message 10 of 21
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