Swapping debt

[Anonymous]

Up until a few weeks ago I had 5 revolving accounts with 1 carrying a balance with 90% util (9k balance 10k CL). My FICO scores were 720 TU, 700 EQ and 690 EX and my average age of accounts was 2 years.

After a little app spree I picked up 9 additional credit cards and 1 signature loan. I understand 9 is a lot (my only regret is nothing picking up a store card) but the plan is to close a few around the 6 month mark. The quantity and selection of accounts that will be closed will depend on the luv shown to me at that point.

The signature loan is for 5k and will go towards the 9k revolving account. The remaining 4K was BT'd to 2 of the newer cards with 0% APR. The 2 cards have only 2k CL's so they are maxed out, but one will be paid in full before the end of the month and the other is the Citi PP card. I was told having a high util on the PP card was OK because of the type of card it is, however i'm starting to feel otherwise after browsing this forum. What do ya'll think?

The intent of the loan was to change the debt from revolving to installment. I'm hoping for a jump in my scoring due to this change and due to the drop in util.

I figured all the new accounts wouldn't hurt much because I only had an average age of 2 years prior to the app spree. Based on my calcs the new average will be 1.2 years. Probably the biggest positive I see from all the new accounts will be 5 to 10 years from now when I apply for new credit my FICO score doesn't take a hit due to a significant drop in average age.

I plan to apply for a mortgage 1 year from now so I've given myself enough time for my average age to get back to 2. I've also been having lots of luck B*ing my TU inquiries down to 1. EQ is at 11 and im hoping those will fall off in time as well. My EX is at 26, however only 7 is within the past 12 months.

So what do you all think of my situation? Did I cripple myself or do you think i'm in decent condition as long as I sit back and do nothing but watch?

Message Edited by souper on 06-11-2008 08:00 PM

[Anonymous]

A year from now, I would say not so crippled. If your 2 new maxed out cards are the same interest rate pay each in 1/2 to care about score, or if you don't care about score, just pay the one in full to skip the annoyance of having more monthly payments.

Don't App any more and 1 year from now all inquiries will no longer matter. They stay on report for 2 years, but only affect scores for 1 year!

So yes, Sit Back, Do Nothing and Wait for the points to go UP!

[Anonymous]

Inquiries decay rather quickly. Now, an app spree that size with all those new accounts did decrease your average age of accounts. By how much depends on your existing credit history.

I always recommend people do their app sprees as early in their credit history as they can while still getting good deals.

[Anonymous]

Yea, my average age dropped from 2.2 years to 1.2... so it wasn't too bad. I have a young history so I figured it was best to get in now rather than later.

Do you think I will gain any of the points I lost by paying off that high util account? I typically have one or two cards carrying a low balance (gas/groceries cards) so they aren't all at 0 balance.

I'm not too worried about the inquiries however that 26 on EX is a thorn in my side.