topic Re: Store card app spree - Damage control in Credit Cards

Store card app spree - Damage control

MyLoFICO — Thu, 25 Feb 2016 20:34:57 GMT

I just got through reading a thread from back in 2015 that has like 43 pages. It was a back office worker at a bank. Lots of info in one place. I read all 43 pages. I got done and went for a short walk. I came back and can’t remember where I found it, but it is not needed. I just wanted to reference it for my question.

I have 2 older credit cards. Cap1 plat (PC'd to QS1) and a credit union Visa. I have a new QS1 and a Barclays Rewards. Those cards are fine.

I went on an app spree before doing enough reading and ended up with a bunch of store cards. Some of them I will use and want to keep (Lowes, Amazon and Walmart and maybe Target since its not Synchrony). However, about half of them can go. Let’s get this out of the way, why did I apply for them? I thought it would help and I was undereducated. Oh, and I liked aping and getting the “A” word. Stupid, yes. I know that now.

I know I took the HP and I know it has to age off. No questions there. If I close them one at a time I will take small hits but I would rather have those hits while I am gardening and waiting for the inq’s to age off. They will continue to report for 10 years but I now know Prime lenders will not look upon them favorably. I don’t want to wait until the inq’s age off to start dropping them unless it would be better. I want to be able to hit up some prime cards when my inq’s are gone. So, should I start closing them? If how, how often? I have 4-5 I think that I want to close.

Re: Store card app spree - Damage control

Skye12329 — Thu, 25 Feb 2016 21:23:48 GMT

I would honestly wait for those accounts to hit 1 or better 2 year mark. The damage is already done, lenders will see the new accounts regardless. But as long as they are open you can help thicken your credit and AAOA possibly by keeping them open for a little bit. Your aaoa now will take a hit but will improve with the age of those accounts.

Re: Store card app spree - Damage control

SunriseEarth — Thu, 25 Feb 2016 21:38:59 GMT

@MyLoFICO wrote:
I just got through reading a thread from back in 2015 that has like 43 pages. It was a back office worker at a bank. Lots of info in one place. I read all 43 pages. I got done and went for a short walk. I came back and can’t remember where I found it, but it is not needed. I just wanted to reference it for my question.

I have 2 older credit cards. Cap1 plat (PC'd to QS1) and a credit union Visa. I have a new QS1 and a Barclays Rewards. Those cards are fine.

I went on an app spree before doing enough reading and ended up with a bunch of store cards. Some of them I will use and want to keep (Lowes, Amazon and Walmart and maybe Target since its not Synchrony). However, about half of them can go. Let’s get this out of the way, why did I apply for them? I thought it would help and I was undereducated. Oh, and I liked aping and getting the “A” word. Stupid, yes. I know that now.

I know I took the HP and I know it has to age off. No questions there. If I close them one at a time I will take small hits but I would rather have those hits while I am gardening and waiting for the inq’s to age off. They will continue to report for 10 years but I now know Prime lenders will not look upon them favorably. I don’t want to wait until the inq’s age off to start dropping them unless it would be better. I want to be able to hit up some prime cards when my inq’s are gone. So, should I start closing them? If how, how often? I have 4-5 I think that I want to close.

I disagree with the statement regarding Prime lenders and store cards. Store cards have payment history and demonstrate UTIL, and those are the two most important factors in your FICO. There's no problem with pruning credit products that no longer serve a need. However, you want to make sure you're making a good decision.

Given your current scores and high INQs on all CRs, I doubt closing store cards will make your profile improve. I would continue working on any baddies, let your new accounts age, and let the INQs age off. If you have CCs that aren't of use to you, SD them for now.

Re: Store card app spree - Damage control

Anonymous — Thu, 25 Feb 2016 21:39:33 GMT

They're open, right? Take advantage of rewards and specials, keep them clean, don't carry any balances, and they will work in your favor for a while.

Re: Store card app spree - Damage control

kdm31091 — Thu, 25 Feb 2016 22:35:50 GMT

There's really not much you can do at this point in terms of damage control. The damage is done -- the cards are open, the HPs have happened and the AAOA dings.

I'd avoid closing them too quickly. Let them display a history for awhile, then close them one by one.

Re: Store card app spree - Damage control

MyLoFICO — Thu, 25 Feb 2016 22:49:49 GMT

They are all SD'd already. I use my QS1 for the bills so I get the CB and now my new secured Discover will be my daily card just so it sees usage. I actually cannot afford to use the others unless something happens like my washer or dryer goes out. Not yet anyway. My job is on shakey ground so I don't want to incur any CC debt that would hinder my regular bills being paid in the event I have to go on unemployment.

I lost my way halfway through the spree and switched from cards I CAN use to cards I knew in the back of my mind I never will. I feel stupid but lesson learned. I guess I will let them age, I mean, it's not like they can do more damage, right? Any harm in letting them age to closure by the creditor?

Re: Store card app spree - Damage control

Chris679 — Fri, 26 Feb 2016 02:11:54 GMT

Re: Store card app spree - Damage control

Anonymous — Fri, 26 Feb 2016 03:37:10 GMT

@Anonymous wrote:
They're open, right? Take advantage of rewards and specials, keep them clean, don't carry any balances, and they will work in your favor for a while.

Re: Store card app spree - Damage control

myjourney — Fri, 26 Feb 2016 03:52:25 GMT

@MyLoFICO wrote:
I just got through reading a thread from back in 2015 that has like 43 pages. It was a back office worker at a bank. Lots of info in one place. I read all 43 pages. I got done and went for a short walk. I came back and can’t remember where I found it, but it is not needed. I just wanted to reference it for my question.

I have 2 older credit cards. Cap1 plat (PC'd to QS1) and a credit union Visa. I have a new QS1 and a Barclays Rewards. Those cards are fine.

I went on an app spree before doing enough reading and ended up with a bunch of store cards. Some of them I will use and want to keep (Lowes, Amazon and Walmart and maybe Target since its not Synchrony). However, about half of them can go. Let’s get this out of the way, why did I apply for them? I thought it would help and I was undereducated. Oh, and I liked aping and getting the “A” word. Stupid, yes. I know that now.

I know I took the HP and I know it has to age off. No questions there. If I close them one at a time I will take small hits but I would rather have those hits while I am gardening and waiting for the inq’s to age off. They will continue to report for 10 years but I now know Prime lenders will not look upon them favorably. I don’t want to wait until the inq’s age off to start dropping them unless it would be better. I want to be able to hit up some prime cards when my inq’s are gone. So, should I start closing them? If how, how often? I have 4-5 I think that I want to close.

I know which thread your looking for ....I got ya!!!!

http://ficoforums.myfico.com/t5/Credit-Cards/Ask-A-Back-Office-CC-Company-Employee-ANYTHING/td-p/3815867

Question how old are these cards just curious?

Re: Store card app spree - Damage control

Anonymous — Fri, 26 Feb 2016 03:52:23 GMT

@MyLoFICO wrote:
They are all SD'd already. I use my QS1 for the bills so I get the CB and now my new secured Discover will be my daily card just so it sees usage. I actually cannot afford to use the others unless something happens like my washer or dryer goes out. Not yet anyway. My job is on shakey ground so I don't want to incur any CC debt that would hinder my regular bills being paid in the event I have to go on unemployment.

I lost my way halfway through the spree and switched from cards I CAN use to cards I knew in the back of my mind I never will. I feel stupid but lesson learned. I guess I will let them age, I mean, it's not like they can do more damage, right? Any harm in letting them age to closure by the creditor?

Totally understand. Im in the same boat. I have pottery barn and walmart that I dont really want because I dont want too many store cards but the pull is already done and it helps pad my utilization so I have already cut them up and paid them off but not closed them since Im applying for a mortgage soon. Ugh I wish I had not got stuck on in store card land.

Re: Store card app spree - Damage control

Anonymous — Fri, 26 Feb 2016 05:07:33 GMT

Find an AU. Also take into consideration that every lender is different 10 years of sporadic use in capital onees eyes is not as good as three solid years of heavy spending and paying off.

That is like a clean driving record for someone who has spent half his life in prison. of course it's a clean driving record and his insurance rates are awesome

Re: Store card app spree - Damage control

MyLoFICO — Fri, 26 Feb 2016 12:11:42 GMT

@myjourney wrote:
@MyLoFICO wrote:
I just got through reading a thread from back in 2015 that has like 43 pages. It was a back office worker at a bank. Lots of info in one place. I read all 43 pages. I got done and went for a short walk. I came back and can’t remember where I found it, but it is not needed. I just wanted to reference it for my question.

I have 2 older credit cards. Cap1 plat (PC'd to QS1) and a credit union Visa. I have a new QS1 and a Barclays Rewards. Those cards are fine.

I went on an app spree before doing enough reading and ended up with a bunch of store cards. Some of them I will use and want to keep (Lowes, Amazon and Walmart and maybe Target since its not Synchrony). However, about half of them can go. Let’s get this out of the way, why did I apply for them? I thought it would help and I was undereducated. Oh, and I liked aping and getting the “A” word. Stupid, yes. I know that now.

I know I took the HP and I know it has to age off. No questions there. If I close them one at a time I will take small hits but I would rather have those hits while I am gardening and waiting for the inq’s to age off. They will continue to report for 10 years but I now know Prime lenders will not look upon them favorably. I don’t want to wait until the inq’s age off to start dropping them unless it would be better. I want to be able to hit up some prime cards when my inq’s are gone. So, should I start closing them? If how, how often? I have 4-5 I think that I want to close.
I know which thread your looking for ....I got ya!!!!
http://ficoforums.myfico.com/t5/Credit-Cards/Ask-A-Back-Office-CC-Company-Employee-ANYTHING/td-p/3815867

Question how old are these cards just curious?

That's it! They are 1-2 months old.

Re: Store card app spree - Damage control

MyLoFICO — Fri, 26 Feb 2016 12:14:23 GMT

@Anonymous wrote:
Find an AU. Also take into consideration that every lender is different 10 years of sporadic use in capital onees eyes is not as good as three solid years of heavy spending and paying off.

That is like a clean driving record for someone who has spent half his life in prison. of course it's a clean driving record and his insurance rates are awesome

lol. Good analogy.

Re: Store card app spree - Damage control

Anonymous — Fri, 26 Feb 2016 12:31:34 GMT

Let them age while your waiting for the INQ to fall off. A solid 2 year payment history vs a 1-2 mo payment history will look better in a manual review after 2 years. Plus some store cards have some good deals. Then after 2 years start slimming them down little by little. Just my .02

Re: Store card app spree - Damage control

MyLoFICO — Fri, 26 Feb 2016 13:13:03 GMT

@Anonymous wrote:
Let them age while your waiting for the INQ to fall off. A solid 2 year payment history vs a 1-2 mo payment history will look better in a manual review after 2 years. Plus some store cards have some good deals. Then after 2 years start slimming them down little by little. Just my .02

I can do that, it's only 22 months away. Of all the cards I have listed in my signature I would drop these at the 2 year mark, in this order.

Fingerhut

PP Smart Connect

Discount Tire

Chevron/Texaco

Kohls

Old Navy

Before I did that I would CLI my others to compensate for the loss in UTIL padding. I just realized I do have 3 MC’s and 2 Visa’s. Not prime mind you, but not store cards either.

Re: Store card app spree - Damage control

Anonymous — Fri, 26 Feb 2016 13:15:33 GMT

That's what I'm doing. I even have a surge and total card that's a beginner card with AF of 125. I'm keeping them and letting them age. There about a year old now. I never use them but I get the payment history. Close to the 2 year mark I'll close those out, then I'll start on my store cards. I'm keeping a few of them tho. Amazon, Walmart ( free TU FICO), overstock, and maybe another that I actually use or find benefit in having. By the 2 year mark my other cards will have grown and so the UTI won't hurt. The CLI's on other good cards will replace what I close.

Re: Store card app spree - Damage control

MyLoFICO — Fri, 26 Feb 2016 13:18:56 GMT

Every app I filled out I told myself i would use those cards, and I would. If they were the only card I had to use. But, I have rewards cards that I would obviously pick first so there is no need for these others. I like Targets card though. It's red. I have to keep that one lol.

Re: Store card app spree - Damage control

takeshi74 — Fri, 26 Feb 2016 13:36:43 GMT

@MyLoFICO wrote:
I know I took the HP and I know it has to age off. No questions there. If I close them one at a time I will take small hits but I would rather have those hits while I am gardening and waiting for the inq’s to age off. They will continue to report for 10 years but I now know Prime lenders will not look upon them favorably. I don’t want to wait until the inq’s age off to start dropping them unless it would be better.

The "prime lender" thing isn't an issue. "Prime" isn't relevant to creditors or cards despite how it is constantly misused. It is relevant to consumers. Unless the accounts are consumer finance accounts they're considered revolvers just like any other revolver. You've already done the damage by apping but certainly close out what isn't of use to you. Consider the info in the Closing Credit Cards thread linked in the Helpful Threads sticky when making your decision for each card. Definitely keep this in mind in future and decide before apping.

Inquiries are a small factor despite the obsession over them. It's not just the inquiries that matter but your AAoA and the new accounts. Closing won't make a new account no longer a new account.

I'd +1 the comment that closing isn't really going to help you score wise but, again, no point in keeping accounts that are of no use to you. Go ahead and close whatever you don't need. You're not going to be apping for anything in the near future anyway so short term scoring impact really doesn't matter.

@Skye12329 wrote:
But as long as they are open you can help thicken your credit and AAOA possibly by keeping them open for a little bit. Your aaoa now will take a hit but will improve with the age of those accounts.

Read the Closing Credit Cards thread. Closed accounts on reports factor into AAoA.

@MyLoFICO wrote:
Any harm in letting them age to closure by the creditor?

Doesn't matter. You just have to make sure that you don't run up revolving utilization, pay late, etc and that you actively monitor all open accounts for fraud.

@MyLoFICO wrote:
Before I did that I would CLI my others to compensate for the loss in UTIL padding. I just realized I do have 3 MC’s and 2 Visa’s. Not prime mind you, but not store cards either.

While revolvling utilization padding is nice, you can always pay down balances prior to report date. However, again, you're not going to be apping for anything in the near future so obsessing over revolving utilization won't provide much meaningful benefit. Just make sure you're paying every statement balance in full and keeping it under 30%.

"Prime" does not matter and with that usage it's highly subjective anyway. Stop worrying over "prime" and store cards. Again, a revolver is a revolver unless you have consumer finance revolvers.

Re: Store card app spree - Damage control

Anonymous — Fri, 26 Feb 2016 13:24:25 GMT

Lol. Well you have less than me and probably others on here.

Re: Store card app spree - Damage control

MyLoFICO — Fri, 26 Feb 2016 13:41:07 GMT

@takeshi74 wrote:
@MyLoFICO wrote:
I know I took the HP and I know it has to age off. No questions there. If I close them one at a time I will take small hits but I would rather have those hits while I am gardening and waiting for the inq’s to age off. They will continue to report for 10 years but I now know Prime lenders will not look upon them favorably. I don’t want to wait until the inq’s age off to start dropping them unless it would be better.
The "prime lender" thing isn't an issue. "Prime" isn't relevant to creditors or cards despite how it is constantly misused. It is relevant to consumers. Unless the accounts are consumer finance accounts they're considered revolvers just like any other revolver. You've already done the damage by apping but certainly close out what isn't of use to you. Consider the info in the Closing Credit Cards thread linked in the Helpful Threads sticky when making your decision for each card. Definitely keep this in mind in future and decide before apping.

Inquiries are a small factor despite the obsession over them. It's not just the inquiries that matter but your AAoA and the new accounts. Closing won't make a new account no longer a new account.

I'd +1 the comment that closing isn't really going to help you score wise but, again, no point in keeping accounts that are of no use to you. Go ahead and close whatever you don't need. You're not going to be apping for anything in the near future anyway so short term scoring impact really doesn't matter.

@Skye12329 wrote:
But as long as they are open you can help thicken your credit and AAOA possibly by keeping them open for a little bit. Your aaoa now will take a hit but will improve with the age of those accounts.
Read the Closing Credit Cards thread. Closed accounts on reports factor into AAoA.

Yes, thank you. Lesson definitely learned. lol. No more app sprees for me. 3 at most and not at the same time. The cards I want won't have the spree thing. I should read more and app less. With 42 total account (25 open and 17 closed) Thankfully my AAoA is still 4yrs 4 mos. CK shows 3yrs 8 mos but nobody cares about CK. lol