topic Re: I need advice on what I should do with my credit in Credit Cards

I need advice on what I should do with my credit

Np1791 — Fri, 08 Dec 2017 18:56:18 GMT

Hello everyone! I love this website because it has taught me so much but now I need to see how I'm doing and what my next steps should be. I feel like I should close some of my cards but I want some advice first. This is my current credit profile

Citi Costco-0/8,500 Aug 29th 2016
Discover IT-6,500/7,000 (lots of christmas shopping but it's all on 0%) Nov 29th 2016
Amex Blue Delta-0/5,000 Jun 7th 2017
Amex Everyday-0/5,000 Dec 23rd 2016
Amex Blue Cash Preferred-0/3,000 Mar 13th 2017
Chase Amazon Prime-0/3,500 Mar 20th 2017
Citi BestBuy-0/800(had it at one point at three thousand and I closed it then reapplied when I had a lot of inquiries and new accounts) Sept 29th 2017
JcPenney-0/600 Oct 26th 2017
Kohl's-0/300 Oct 26th 2017
Blispay-909.87/4,000 Mar 10 2017
CapOne BuyPower-200/3,000 Jun 12th 2017
Ashley Furniture-2,731/7,500 Aug 9th 2017 (not for everyday use so I don't sweat the balance. Minimum payments for the next 18 months)
CareCredit-2,525/12,000 Oct 23rd 2017 (don't really count this one either because I see it as more of a loan than a card. 18 months of 0%)
37,666.38 auto loan May 15th 2017 3.49% 84months
35,208.92 auto loan May 19th 2017 5.74% 84months

I feel like I want to close JcPenney , Kohl's, and BestBuy. Also thinking about closing the BuyPower and Blispay cards since those won't grow. I want to know how you guys think I'm doing and if you have any comments on my plans and also if you have any suggestions. Thank you.

Re: I need advice on what I should do with my credit

Anonymous — Fri, 08 Dec 2017 18:45:35 GMT

Yep, Kohls, JCP and BestBuy

Re: I need advice on what I should do with my credit

Anonymous — Fri, 08 Dec 2017 19:12:28 GMT

These are what I would personally keep and the rest I would close (I would be on the fench with the Chase Amazon, it doesn't seem to grow limit wise, but it is nice if you have amazon prime) :

Citi Costco-0/8,500 Aug 29th 2016
Discover IT-6,500/7,000 (lots of christmas shopping but it's all on 0%) Nov 29th 2016
Amex Blue Cash Preferred-0/3,000 Mar 13th 2017--> I love the BCP, but I'm not sure if it makes sense to have MR's and cash back. If it was me I would probably put the ED and the Delta limits on this card to make it $12500 (or $13000, whatever Amex allows you to do).
Ashley Furniture-2,731/7,500 Aug 9th 2017 (not for everyday use so I don't sweat the balance. Minimum payments for the next 18 months)
CareCredit-2,525/12,000 Oct 23rd 2017 (don't really count this one either because I see it as more of a loan than a card. 18 months of 0%)
37,666.38 auto loan May 15th 2017 3.49% 84months
35,208.92 auto loan May 19th 2017 5.74% 84months

Re: I need advice on what I should do with my credit

Np1791 — Fri, 08 Dec 2017 19:59:50 GMT

Well I currently have 65K miles on the Delta so that one won't be getting closed until I use them first lol but I see what you're saying. I hardly shop with the Amazon card to be honest. I hate the fact that the chase one doesn't give special finance options like the Synchrony one. That is why I didn't use it for any of my Amazon purchases this Christmas.

Re: I need advice on what I should do with my credit

K-in-Boston — Fri, 08 Dec 2017 20:07:46 GMT

Fortunately all of your opening dates are pretty close together so you're not stuck with a lackluster card that you can't close for the sole reason of being your oldest card. In 10 years a few months won't make that much of a difference in account age.

As for the Delta, your SkyMiles are stored in your SkyMiles account not with Amex and they never expire. You never want to close a Membership Rewards earning card with points on it unless you have another MR earning card, but with cobranded cards like Delta and Starwood you're fine. If you want SkyMiles no sense in closing that one, and you can always transfer Membership Rewards to SkyMiles with at least a 1:1 ratio. If you don't shop at JCP or Best Buy, certainly those could go. If you don't shop at Kohl's, certainly that one as well - but if you do shop there, don't be disheartened by the low credit limit. Almost everyone starts at $300, then goes to $700, $1500 and $3000 in 3-6 month increments.

As for the rest of the cards, we'd really need to know what you spend money on and whether you prefer cash back or travel rewards to make suggestions. Also keep in mind that while it's at 0%, your Discover looks maxed out to lenders and will certainly ding your scores.

Re: I need advice on what I should do with my credit

Np1791 — Fri, 08 Dec 2017 20:17:19 GMT

Yeah that definitely makes sense, account age on those cards doesn't matter as much. Oh I didn't know that at all! is there a way that I can confirm that? not saying that I don't believe you but I am planning for a trip sometime in July next year and I would hate to lose all of those miles. I don't necessarily need the skymiles card since I can just as easily build cash back and put the tickets on the card and then redeeming my cash back on it. I do shop at Best Buy but I also have their points membership thing or whatever so I get "cash back" regardless. Kohl's and Jcpenney every now and then. I'm not a huge shopper but I do shop at the typical department stores along with groceries stores and Costco. A lot of eating out and starbucks and Amazon. I don't think I like the Kohl's, Jcpenney, and Amazon cards because they don't offer special financing.

Re: I need advice on what I should do with my credit

Np1791 — Fri, 08 Dec 2017 20:21:25 GMT

I am aware of my Discover card being near the limit. I have had it like that before and it was fine with them and my other lenders. I tend to pay back fast. Discover started at 1K and I would always be close to the limit and then 2k, 4,500, 7K and I keep showing them love. On my next check I'm going to give them a 700 dollar payment. It should be paid off by march I believe.

Re: I need advice on what I should do with my credit

simplynoir — Fri, 08 Dec 2017 20:26:30 GMT

@Np1791 wrote:
Yeah that definitely makes sense, account age on those cards doesn't matter as much. Oh I didn't know that at all! is there a way that I can confirm that?

Your Skymiles are tied to the Skymiles number that is printed on your card or you can also see it when you login to your Delta account online. Closing your AMEX will not affect the Skymiles accrued but you can keep it open if it will make you feel better; nothing can beat a feeling of security.

Re: I need advice on what I should do with my credit

RicHowe — Fri, 08 Dec 2017 20:34:23 GMT

@Np1791 wrote:
Hello everyone! I love this website because it has taught me so much but now I need to see how I'm doing and what my next steps should be. I feel like I should close some of my cards but I want some advice first. This is my current credit profile
Citi Costco-0/8,500    Aug 29th 2016
Discover IT-6,500/7,000 (lots of christmas shopping but it's all on 0%)   Nov 29th 2016
Amex Blue Delta-0/5,000   Jun 7th 2017
Amex Everyday-0/5,000   Dec 23rd 2016
Amex Blue Cash Preferred-0/3,000 Mar 13th 2017
Chase Amazon Prime-0/3,500 Mar 20th 2017
Citi BestBuy-0/800(had it at one point at three thousand and I closed it then reapplied when I had a lot of inquiries and new accounts) Sept 29th 2017
JcPenney-0/600 Oct 26th 2017
Kohl's-0/300 Oct 26th 2017
Blispay-909.87/4,000 Mar 10 2017
CapOne BuyPower-200/3,000 Jun 12th 2017
Ashley Furniture-2,731/7,500 Aug 9th 2017 (not for everyday use so I don't sweat the balance. Minimum payments for the next 18 months)
CareCredit-2,525/12,000 Oct 23rd 2017 (don't really count this one either because I see it as more of a loan than a card. 18 months of 0%)
37,666.38 auto loan May 15th 2017 3.49% 84months
35,208.92 auto loan May 19th 2017 5.74% 84months
I feel like I want to close JcPenney , Kohl's, and BestBuy. Also thinking about closing the BuyPower and Blispay cards since those won't grow. I want to know how you guys think I'm doing and if you have any comments on my plans and also if you have any suggestions. Thank you.

Holy Smokes!

You have:

$12,865.87 in revolving credit card debt

$72,875.30 in installment debt

$85,741.17 total in non morgage debt and recurring household expenses

Please understand I am not judging and really it's none of my business, but I am afraid that unless you are NETTING about $400k ($750,000 Gross) a year you are in over your head. I certainly hope that is the case.

To answer your question, I would cut anything that does not put you more than 30% over utilization.

Re: I need advice on what I should do with my credit

dlm0820 — Fri, 08 Dec 2017 20:41:25 GMT

You have two car notes for 84 months, almost 1 maxed out card and you are wondering which cards you should close?

Priorities.

Re: I need advice on what I should do with my credit

Np1791 — Fri, 08 Dec 2017 20:59:18 GMT

Oh okay thank you.

Re: I need advice on what I should do with my credit

Np1791 — Fri, 08 Dec 2017 21:07:45 GMT

I do realize that I have a lot of credit card debt however two of those are not cards for everyday use and are on 0% terms for 18 months that will get paid off in the middle of next year. As far as the Discover card goes it was mostly Christmas shopping and I have had no trouble in paying it off fast in the past and it won't be an issue now either. I appreciate your input and I do not take it offensively. I do not make that much but I am very efficient with my money and I have been able to make all payments on both my credit cards and loans. I will keep the utilization percentage in mind.

Re: I need advice on what I should do with my credit

Np1791 — Fri, 08 Dec 2017 21:13:44 GMT

I do have two car notes and that is what they are notes. Meaning that there is a minimum payment that is due and I at the time of purchasing the vehicles thought about my ability to repay them. Which for your information was a top priority for me as I have 0 missed payments on my file. I also decided to put all of the purchases on Discover because I know that they have no issues with me doing so as I have done so in the past. I am able to pay everything back and I will do so. Now will you actually answer my question or will you just low key judge me and my "priorities."

Re: I need advice on what I should do with my credit

K-in-Boston — Fri, 08 Dec 2017 21:27:20 GMT

Let's please remember to remain Friendly, Supportive and Respectful. Different people have different capabilities of carrying debt.

OP, I would certainly suggest that once you've decided on which cards to close down, come join us over in the garden thread and let those accounts age a bit. While they're not astronomical in interest, refinancing those loans through a credit union such as PenFed could possibly save you thousands, but it may be difficult to do so with the current age of your accounts.

Re: I need advice on what I should do with my credit

yfan — Fri, 08 Dec 2017 21:49:16 GMT

@Np1791 wrote:
I do have two car notes and that is what they are notes. Meaning that there is a minimum payment that is due and I at the time of purchasing the vehicles thought about my ability to repay them. Which for your information was a top priority for me as I have 0 missed payments on my file. I also decided to put all of the purchases on Discover because I know that they have no issues with me doing so as I have done so in the past. I am able to pay everything back and I will do so. Now will you actually answer my question or will you just low key judge me and my "priorities."

Don't get offended. People are, believe it or not, trying to help. The credit picture is bigger than credit cards. You did begin by asking for broad stroke advice.

I think it's awesome that you have never had a late payment. But I wouldn't get over-confident and assume nothing will ever change for you. It also doesn't tell us anything about whether/how much interest you have paid to credit card companies, your income, your age or the length of your credit history, all of which are factors in assessing risk. I am going to assume your scores are fine, since your car notes seem to be at moderate interest rates. The amount of non-mortgage debt you are carrying is in fact substantially high, and will continue to remain high even when $6500 of it is paid off.

To that extent, I would advise that any extra money you have that would otherwise be going to your 0% cards go to paying down the principles of your car notes while the cards are still at 0.

What cards you close should depend solely on what you have use for. Cards do not need to be hung onto beyond their usefulness.

Re: I need advice on what I should do with my credit

Np1791 — Fri, 08 Dec 2017 22:00:52 GMT

@yfan wrote:
@Np1791 wrote:
I do have two car notes and that is what they are notes. Meaning that there is a minimum payment that is due and I at the time of purchasing the vehicles thought about my ability to repay them. Which for your information was a top priority for me as I have 0 missed payments on my file. I also decided to put all of the purchases on Discover because I know that they have no issues with me doing so as I have done so in the past. I am able to pay everything back and I will do so. Now will you actually answer my question or will you just low key judge me and my "priorities."
Don't get offended. People are, believe it or not, trying to help. The credit picture is bigger than credit cards. You did begin by asking for broad stroke advice.

I think it's awesome that you have never had a late payment. But I wouldn't get over-confident and assume nothing will ever change for you. It also doesn't tell us anything about whether/how much interest you have paid to credit card companies, your income, your age or the length of your credit history, all of which are factors in assessing risk. I am going to assume your scores are fine, since your car notes seem to be at moderate interest rates. The amount of non-mortgage debt you are carrying is in fact substantially high, and will continue to remain high even when $6500 of it is paid off.

To that extent, I would advise that any extra money you have that would otherwise be going to your 0% cards go to paying down the principles of your car notes while the cards are still at 0.

What cards you close should depend solely on what you have use for. Cards do not need to be hung onto beyond their usefulness.

I know that I did ask for that and it was more of that one guy putting "priorities" at the end in a smart ass kind of way. That kind of ticked me off. I haven't paid much interest if any at all. Any card that I have carried a balance on has been a zero percent card. My credit history isn't very long as I am only 21 years old soon to be 22 in February. Scores dipped a little since I got the big auto loans but they are anywhere between high 600s and low 700s. I do know that even after I pay off my Discover card I will still be carrying heavy debt because of the auto loans but I do plan on making double payments once I get rid of the credit card debt. That is a good thing to keep in mind and I am glad you said that because the cards I listed are not useful to me.

Re: I need advice on what I should do with my credit

yfan — Fri, 08 Dec 2017 22:17:24 GMT

Just curious, why 2 auto loans? Are you sharing responsibility for the loans with a significant other who drives the other vehicle?

Re: I need advice on what I should do with my credit

Np1791 — Fri, 08 Dec 2017 22:24:04 GMT

@yfan wrote:
Just curious, why 2 auto loans? Are you sharing responsibility for the loans with a significant other who drives the other vehicle?

One is mine and the other is my moms. Both under my name only. I also pay for both. Mothers day gift.

Re: I need advice on what I should do with my credit

HeavenOhio — Fri, 08 Dec 2017 23:10:16 GMT

The OP didn't express concerns about being able to pay off debt. As a matter of fact, she has reasonable target dates in mind. So at this point, I'm not particularly concerned about the overall amount.

However, because the amount of debt is substantial, I wouldn't close any more than the three cards originally mentioned. They have low limits, and they don't help overall utilization much. However, be sure you want to close vs. finding yourself in a position where you decide to apply for the same card again in the relatively near future.

One general suggestion is to try to pay substantially more than the minimum on cards where you're carrying balances. While paying the minimum supposedly meets the card's terms, that doesn't stop lenders from getting cranky and taking adverse action. Synchrony and Comenity are examples of banks that get particularly cranky. If you have a deferred interest situation for 18 months, I'd aim for 17 fairly equal payments. Paying the minimum is something you can get away with now and then, but I wouldn't make it a regular thing.

My last suggestion is to garden for a while and let the dust settle. You've done a remarkable job at getting good cards in a short period of time. But now it's time to let them age and hopefully let their limits grow.

Re: I need advice on what I should do with my credit

Np1791 — Sat, 09 Dec 2017 00:34:07 GMT

@HeavenOhio wrote:
The OP didn't express concerns about being able to pay off debt. As a matter of fact, she has reasonable target dates in mind. So at this point, I'm not particularly concerned about the overall amount.

However, because the amount of debt is substantial, I wouldn't close any more than the three cards originally mentioned. They have low limits, and they don't help overall utilization much. However, be sure you want to close vs. finding yourself in a position where you decide to apply for the same card again in the relatively near future.

One general suggestion is to try to pay substantially more than the minimum on cards where you're carrying balances. While paying the minimum supposedly meets the card's terms, that doesn't stop lenders from getting cranky and taking adverse action. Synchrony and Comenity are examples of banks that get particularly cranky. If you have a deferred interest situation for 18 months, I'd aim for 17 fairly equal payments. Paying the minimum is something you can get away with now and then, but I wouldn't make it a regular thing.

My last suggestion is to garden for a while and let the dust settle. You've done a remarkable job at getting good cards in a short period of time. But now it's time to let them age and hopefully let their limits grow.

I'm actually a guy lol but I know that my name is unisex so I won't hold it against you. I completely get what you're saying about closing and then reapping for them and I don't think I will do that for Kohl's or JcPenney but maybe for BestBuy I would after a long while of gardening. I have heard that the bestbuy card doesn't really grow. I will definitely keep that in mind while dividing my payments.Thank you for your awesome advice. I appreciate all of it and I will keep it in mind as I continue on my credit journey.