topic Re: need advice on my secured credit cards in Credit Cards

need advice on my secured credit cards

falcon7xx — Mon, 14 Oct 2019 02:17:58 GMT

I recently just got approved my an Amex Gold Card. I wanted to know if it was a good idea or a bad idea to close any of my secured cards below in my signature. They were opened over a year ago. I basically use the NFCU credit card and the Merrick all the time. Also I am at about 120 days with my NFCU card so i was thinking about asking for a CLI, but i did not want to jeporadize the Amex card.

Re: need advice on my secured credit cards

KJinNC — Mon, 14 Oct 2019 02:32:45 GMT

Per conventional wisdom on this forum, you get a score bump if you have three open revolvers. If you close them all, you will have zero open revolvers (Gold Card is a charge card) and will probably lose some points from that. I doubt it would be drastic but it would be negative. So, it depends what your goals are, if you are willing to lose some points to simply your life, that is probably ok. But for maximum score, I think you'd want to keep some of them for now. I don't know anything about those specific cards including whether they unsecure or how they handle CLIs. JMO and good luck!

Re: need advice on my secured credit cards

falcon7xx — Mon, 14 Oct 2019 02:46:51 GMT

@KJinNC wrote:
Per conventional wisdom on this forum, you get a score bump if you have three open revolvers. If you close them all, you will have zero open revolvers (Gold Card is a charge card) and will probably lose some points from that. I doubt it would be drastic but it would be negative. So, it depends what your goals are, if you are willing to lose some points to simply your life, that is probably ok. But for maximum score, I think you'd want to keep some of them for now. I don't know anything about those specific cards including whether they unsecure or how they handle CLIs. JMO and good luck!

I am still looking at score being the most important. I have no issue keeping the cards open. I just do not want to create any issues canceling a card later on and having my AAOA go down.

Re: need advice on my secured credit cards

Anonymous — Mon, 14 Oct 2019 02:55:29 GMT

don't close any cards right now. to improve your scores use a low utilization and azeo strategy. the usbank card will eventually unsecure into a very nice card and navy will start giving you a bigger limit.

Re: need advice on my secured credit cards

falcon7xx — Mon, 14 Oct 2019 03:07:43 GMT

@Anonymous wrote:
don't close any cards right now. to improve your scores use a low utilization and azeo strategy. the usbank card will eventually unsecure into a very nice card and navy will start giving you a bigger limit.

for some reason I thought the US Bank cannot go to an Unsecured card from Secured. I was thinking you need to app for a new card with them.

Re: need advice on my secured credit cards

Anonymous — Mon, 14 Oct 2019 04:18:49 GMT

Don’t close. Just wait. Patience is the key

Re: need advice on my secured credit cards

falcon7xx — Mon, 14 Oct 2019 13:01:34 GMT

I have had the us bank secured card for about 14 months now. Any idea on when or how you get it unsecured. It’s been PIF every month and no lates.

Re: need advice on my secured credit cards

spiritcraft1 — Mon, 14 Oct 2019 13:54:11 GMT

Have you tried the Discover prequal? You can likely replace say the GreenDot with something better at this point. Depending on Util and DTI you will likely be due that second NFCU card as well soon.

Re: need advice on my secured credit cards

falcon7xx — Mon, 14 Oct 2019 14:12:28 GMT

I had a CO with Discover 2 years ago, so Discover is out of the question for a few years until they forgive me for the CO.

Re: need advice on my secured credit cards

KJinNC — Mon, 14 Oct 2019 14:17:30 GMT

There are secured cards you could get that are better than some of your current cards, but at this point, I am not sure it's worth it, because you are nearly within striking distance of getting decent unsecured credit cards. I think I might hold steady until you can start prequalifying or getting preapprovals for some standard unsecured cards. That said, what I would consider better secured cards would include Discover (I know you have a CO issue there), Citi, TD Bank, and probably Bank of America. Probably leaving some out. I doubt the benefits of those cards would be worth the hit to AAoA you'd take to switch.

To answer a question you didn't ask, but may be wondering, you won't lose any account age if you close cards/accounts until they fall off your credit reports in ~10 years, by which time it'll be such a different situation that it might not matter much.

Good luck!

Re: need advice on my secured credit cards

spiritcraft1 — Mon, 14 Oct 2019 15:09:19 GMT

@falcon7xx wrote:
I had a CO with Discover 2 years ago, so Discover is out of the question for a few years until they forgive me for the CO.

DW had same issue... 6 years and still no forgiveness. Prequal even said so!

When was the last time you had a CLI, graduation from NFCU? If over 91 days and 3 statements, I would burn a TU INQ for the second card of your choice attempt. I bet that would be an easier task than a CLI on what was a secured card. That has been the case with me and especially the Wife. Income and DTI matters though as may your DC date (personally no data on that). FNBO also has a good secured card if geographically able. A local CU may work as well.

If I may ask, who else got burned? We all have a list as rebuilders!

Re: need advice on my secured credit cards

falcon7xx — Mon, 14 Oct 2019 15:23:49 GMT

I burned Chase, Discover, and BofA I paid off but I had a few delinquencies over 90 days with. Other than that everyone has got paid off. I am a private client with Chase but that’s doesn’t seem to matter at the moment. I could go for my 2nd Card with NFCU. I was looking at US Bank cards and they don’t seem to have any killer offers. Are they worth calling and seeing if I can graduate to an unsecured with or is it more patience on my part that’s needed.

Re: need advice on my secured credit cards

spiritcraft1 — Mon, 14 Oct 2019 16:06:08 GMT

@falcon7xx wrote:
I burned Chase, Discover, and BofA I paid off but I had a few delinquencies over 90 days with. Other than that everyone has got paid off. I am a private client with Chase but that’s doesn’t seem to matter at the moment. I could go for my 2nd Card with NFCU. I was looking at US Bank cards and they don’t seem to have any killer offers. Are they worth calling and seeing if I can graduate to an unsecured with or is it more patience on my part that’s needed.

So goes it! Chase may come around in time. No idea about USB but it may be a a hard pull to inquire about that one. It seems that the second card with NFCU is the easier one to get. Again, depending on DTI it could be a nice limit. A new NFCU card takes about 45 days to show up on reports and would likely be a TU FICO 09 pull. I don't think a new NFCU card is going to freak out AMEX but a larger limit would help you if NFCU came through. The More Rewards and Flagship have nice bonuses currently.

Re: need advice on my secured credit cards

falcon7xx — Mon, 14 Oct 2019 17:59:59 GMT

My DTI is around 17% right now. I believe that’s I relatively low.

Re: need advice on my secured credit cards

Anonymous — Mon, 14 Oct 2019 21:39:56 GMT

@falcon7xx wrote:
My DTI is around 17% right now. I believe that’s I relatively low.

for rebuilding that's not low. if you want to rebuild your score fast, keep the util at 5% or less, per card. and ideally just let one card report a balance. that means your overall util will be even lower than 5%. you can pay cards down before the statement closing date to accomplish it. for example, you can spend $5k through a card with a $500 limit by paying it down repeatedly, but at the end let it report $25.

you should pull all 3 of your reports and make a list of the baddies, figure out when each one will drop off, they are affecting your score the most. if you could have any of them removed early that's your best bet.

Re: need advice on my secured credit cards

spiritcraft1 — Mon, 14 Oct 2019 21:47:22 GMT

@Anonymous wrote:
@falcon7xx wrote:
My DTI is around 17% right now. I believe that’s I relatively low.
for rebuilding that's not low. if you want to rebuild your score fast, keep the util at 5% or less, per card. and ideally just let one card report a balance. that means your overall util will be even lower than 5%. you can pay cards down before the statement closing date to accomplish it. for example, you can spend $5k through a card with a $500 limit by paying it down repeatedly, but at the end let it report $25.

you should pull all 3 of your reports and make a list of the baddies, figure out when each one will drop off, they are affecting your score the most. if you could have any of them removed early that's your best bet.

He was listing DTI not Utilization.

Re: need advice on my secured credit cards

falcon7xx — Tue, 15 Oct 2019 13:41:11 GMT

@spiritcraft1 wrote:
@falcon7xx wrote:
I burned Chase, Discover, and BofA I paid off but I had a few delinquencies over 90 days with. Other than that everyone has got paid off. I am a private client with Chase but that’s doesn’t seem to matter at the moment. I could go for my 2nd Card with NFCU. I was looking at US Bank cards and they don’t seem to have any killer offers. Are they worth calling and seeing if I can graduate to an unsecured with or is it more patience on my part that’s needed.
So goes it! Chase may come around in time. No idea about USB but it may be a a hard pull to inquire about that one. It seems that the second card with NFCU is the easier one to get. Again, depending on DTI it could be a nice limit. A new NFCU card takes about 45 days to show up on reports and would likely be a TU FICO 09 pull. I don't think a new NFCU card is going to freak out AMEX but a larger limit would help you if NFCU came through. The More Rewards and Flagship have nice bonuses currently.

Why do you say a new NFCU card with a higher limit will help my credit? Just wondering this out of curiousity. Also my TU Fico 09 score is lower than my 08 score. Will this have any effect with NFCU or since I am a current NFCU it won't matter as much?

Re: need advice on my secured credit cards

spiritcraft1 — Tue, 15 Oct 2019 15:48:15 GMT

@falcon7xx wrote:
Why do you say a new NFCU card with a higher limit will help my credit? Just wondering this out of curiousity. Also my TU Fico 09 score is lower than my 08 score. Will this have any effect with NFCU or since I am a current NFCU it won't matter as much?

It may or may not give you any iniial boost but the larger CL will help as it ages. It will help with future approvals etc. If you have any old CO's on your report, you will get a score boost as those are counted in any utilization calculation. Both DW and I had significant score boosts with our second cards as it helped with UTI since we had CO's and CA's reporting.

As for FICO 09, what is that score? NFCU also has an internal score which is being boosted by your nRewards turned GoRewards history.

Re: need advice on my secured credit cards

falcon7xx — Tue, 15 Oct 2019 14:09:34 GMT

@spiritcraft1 wrote:
@falcon7xx wrote:
@spiritcraft1 wrote:
@falcon7xx wrote:
I burned Chase, Discover, and BofA I paid off but I had a few delinquencies over 90 days with. Other than that everyone has got paid off. I am a private client with Chase but that’s doesn’t seem to matter at the moment. I could go for my 2nd Card with NFCU. I was looking at US Bank cards and they don’t seem to have any killer offers. Are they worth calling and seeing if I can graduate to an unsecured with or is it more patience on my part that’s needed.
So goes it! Chase may come around in time. No idea about USB but it may be a a hard pull to inquire about that one. It seems that the second card with NFCU is the easier one to get. Again, depending on DTI it could be a nice limit. A new NFCU card takes about 45 days to show up on reports and would likely be a TU FICO 09 pull. I don't think a new NFCU card is going to freak out AMEX but a larger limit would help you if NFCU came through. The More Rewards and Flagship have nice bonuses currently.
Why do you say a new NFCU card with a higher limit will help my credit? Just wondering this out of curiousity. Also my TU Fico 09 score is lower than my 08 score. Will this have any effect with NFCU or since I am a current NFCU it won't matter as much?
It may or may not give you any iniial boost but the larger CL will help as it ages. It will help with future approvals etc. If you have any old CO's on your report, you will get a score boost as those are counted in any utilization calculation. Both DW and I had significant score boosts with our second cards as it helped with UTI since we had CO's and CA's reporting.

As for FICO 09, what is that score? NFCU also has an internal score which is being boosted by your nRewards turned GoRewards history.

its 670 currently. Also I had no idea CO were calculated against your utilization!

Re: need advice on my secured credit cards

spiritcraft1 — Tue, 15 Oct 2019 15:48:47 GMT

@falcon7xx wrote:

As for FICO 09, what is that score? NFCU also has an internal score which is being boosted by your nRewards turned GoRewards history.
its 670 currently. Also I had no idea CO were calculated against your utilization!

Yes, it can be killing your scores actually. Depending on amounts of course.