topic Re: Should I close all my credit and start over...? in Credit Cards

Should I close all my credit and start over...?

Anonymous — Sat, 30 Nov 2019 16:40:40 GMT

Basically the title says it all. About 7 months ago I didn't know what a 5/24 was. Or the difference between a sub prime card or a store card. Points? What are those? I didn't know anything really. I only had a few cards left from over the years.

Victoria Secret $1,000.

Kohl's $700.

Target RedCard $500.

Capital One $300.

I had late payments on the Target and Capital One. I had 2 30 day late's on the Target and 5 late's on Capital One (2=60 & 3=30).

These cards are from 2013. My last late's were May 2017. Most these late payments fall off early and mid 2021.

I started thinking I could "outsmart" the credit game and I closed my Capital One card thinking I could eliminate my late payments. I guess we all know how that turned out. Lol!

Then one day I am sitting here and I feel incomplete. I feel like I am missing so much in life. I keep getting YouTube video's popping up in my feed like "how to get a monster CL" or "Best CC's in 2019". So I decided to apply for some credit.

First I called Discover. I was approved for an $8500 Discover IT card.

Hung up with them and called Chase. They gave me a $5000 CSR card.

Then I called AMEX. They gave me an AMEX ED card for $1k.

I didn't really want much else but I couldn't stop. I was riding a wave and just kept dialing.

I called Credit One and they gave me a $1k Visa. (I had a $350 card with them and I closed it in 2016)

Then I called Finger Hut and they gave me $350.

2 days later I drive down to NFCU and open a savings and checking. I immediately apply for their Plat card and CLOC. I received both for $500 each.

Also 2 months ago I was reading about the NFCU SSL. Yup... I did that one for $3010 and paid it down to $253. Next payment is like 2024 or something like that.

When I applied for all these cards I was in the process of moving a business and opening another one... Sooooo I maxed out all the cards except Finger Hut. When I applied for FH they didn't tell me a limit or anything. They said a card was being mailed. It arrived and when I seen the limit I called and told them I didn't want it. It's on my credit report as opened and closed in the same month.

I was at 99% utilization after the 1st month. Lol... Ok. I know. Not funny. Once summer passed and I was done with my relocation I decided to start trying to get these cards paid off. All of them are paid except Disco which I owe $2600 on. My statement date is the 25th and I will pay it off by the next statement date.

After I went on the app spree/binge I started reading here. I realized Credit One was a huge mistake (I told you I didn't know anything about credit and nobody told me this is a builder/rebuilder card). So was the Finger Hut (I didn't know it could show up on my credit report since I never used it). Now I am trying to clean up my credit report...

Should I close the Credit One? CHASE? Disco?

I use 100% of all available credit on all my accounts every month. And I pay in full on the due dates (except Disco. Dec will be the first month it has been paid in full. I charge about $3 to 5k every month on the Disco and pay that amount off every month but there is always a $2 to $3k balance).

I also take cash advances from my cards which now I read raises a red flag and I will never get a CLI. My Disco card gives me $1700 and my Chase gives me $1k. I take it every month. Sometimes a couple times a month. Sometimes I pay back in 24 hours and sometimes I pay back by my due date. It was always just an easy option for me and I didn't know credit card companies flag you as risky for doing this. I guess I won't be taking anymore cash advances. Lol!

As you can see I have a ton of new and poorly managed credit in the last 7 months. Which ones should I close? How can I best clean up this mess (I know time is the the main option) so my profile don't look so bipolar? Since I took cash advances should I close Disco and Chase and start over with them in a year or 2?

My Average age of credit is now 26 months. My youngest is the NFCU SSL which is 2 months.

I wrote this last night to ask advice of this community but I also wrote it to kind of distract myself from applying for more credit. I almost app'd for an Amazon store card and a Walmart card. I had both in 2012 and in 2015 I went through a divorce. I was late on every single card I owned at the time. Lowes, TJMAX, Walmart, Amazon, Chevron, Macy's, JCP's and my first Credit One card. I was 60 days late on all of them. I paid them in full but they closed All of them except for Walmart. Walmart was $1k limit and they reduced it to $100 after being late. I never used it and eventually it was closed. Now... On all those accounts I was late on I wrote letter's to the Presidents and CEO's and asked for goodwill adjustments. All the late payments were removed. Target and Capital One said no. They said no 1000 times already. LOL! HEEEELP!!!

Re: Should I close all my credit and start over...?

Jannelo — Sat, 30 Nov 2019 17:29:06 GMT

Stop! I'm dizzy. Reading your post was a wild ride, but then halfway through it appeared you were learning from your bad mistakes. But then I hit the part where you barely held yourself back from applying for more credit cards recently and asking should you close Chase and Discover. Say what? No, you shouldn't close them and start over. I think you are becoming manic over this. There are many experienced and knowledgeable people on here who I hope will come on and give you great advice. Please follow it.

Re: Should I close all my credit and start over...?

Anonymous — Sat, 30 Nov 2019 18:26:14 GMT

"Hung up with them and called Chase. They gave me a $5000 CSR card."

Impossible. A CSR has a minimum $10,000 credit limit.

Re: Should I close all my credit and start over...?

Anonymous — Sat, 30 Nov 2019 18:11:06 GMT

So, you’ve learned what 5/24 is. You’ve leaned what prime and subprime is. You’ve learned the effects of lates. But yet you want to know if you should just close all of your cards?

You have your utilization pegged at 100% and take cash advances more often than some people use a card, but yet you’ve had no AA on a thin, dirty file that has numerous inquiries and new accounts on it?

Chase, whom typically proves to be selective with their approvals gives you a $5,000 card while you utilization is at 100%?

Re: Should I close all my credit and start over...?

Traveler101 — Sat, 30 Nov 2019 17:32:20 GMT

You really need to take a chill pill. Credit apps are not like vitamins, One a day! Sit on what you have. Weed out what doesnt work and keep your oldest open. You will do more harm to your credit by the road you are on

Re: Should I close all my credit and start over...?

CreditCuriosity — Sat, 30 Nov 2019 18:13:58 GMT

Posts have been removed and or edited. If you notice your post missing there is a reason for it. please keep this post FSR and if you think it needs looked at vs. snark comments please alert a moderator vs. making the situation worse.

I will be watching this and seeing where this posts goes and make a decision about whether it has merit to continue to live or not.

Re: Should I close all my credit and start over...?

PointsBonus — Sat, 30 Nov 2019 18:54:13 GMT

@CreditOverMoney

A wise friend once told me "Time fixes everything". With that being said, my humble advice would be, sit tight, use your cards and pay them off, KEEP = CHASE,AMEX, DISC and Vic, Vic "can" grow. The rest....up to you, But I personally had Credit and Capital One with those low limits, but I closed them after AMEX.

Now, your wondering why you should keep ? Simple, time is the BEST medicine for Credit, I mean, TIME with no inq or new accounts (me wayyyyy over 5/24 lol). So, lock all three of yoru bureaus, do not apply for anything, get in the garden, use your cards and pay them off, and i bet 18-24 months from now, you will not recognize your credit score !

Best of luck on your journey !

Re: Should I close all my credit and start over...?

Anonymous — Sat, 30 Nov 2019 21:05:47 GMT

@Jannelo wrote:
Stop! I'm dizzy. Reading your post was a wild ride, but then halfway through it appeared you were learning from your bad mistakes. But then I hit the part where you barely held yourself back from applying for more credit cards recently and asking should you close Chase and Discover. Say what? No, you shouldn't close them and start over. I think you are becoming manic over this. There are many experienced and knowledgeable people on here who I hope will come on and give you great advice. Please follow it.

You're dizzy? Im drunk off it. Lol! When I was typing it I was like "wow this is nuts". Lol

Re: Should I close all my credit and start over...?

Anonymous — Sat, 30 Nov 2019 21:06:31 GMT

@Anonymous wrote:
"Hung up with them and called Chase. They gave me a $5000 CSR card."

Impossible. A CSR has a minimum $10,000 credit limit.

I don't know what the minimums are for what cards but you're correct... I have the Preferred. I just had to go online and look. Lol

Re: Should I close all my credit and start over...?

Anonymous — Sat, 30 Nov 2019 21:07:11 GMT

@Anonymous wrote:
"Hung up with them and called Chase. They gave me a $5000 CSR card."

Impossible. A CSR has a minimum $10,000 credit limit.

So should I try for the CSR then? Lol! J/K!

Re: Should I close all my credit and start over...?

Anonymous — Sat, 30 Nov 2019 21:07:53 GMT

@Traveler101 wrote:
You really need to take a chill pill. Credit apps are not like vitamins, One a day! Sit on what you have. Weed out what doesnt work and keep your oldest open. You will do more harm to your credit by the road you are on

So 1 app a day? Cool. I will try that. :-)

Re: Should I close all my credit and start over...?

Anonymous — Sat, 30 Nov 2019 21:08:24 GMT

@Anonymous wrote:
So, you’ve learned what 5/24 is. You’ve leaned what prime and subprime is. You’ve learned the effects of lates. But yet you want to know if you should just close all of your cards?

You have your utilization pegged at 100% and take cash advances more often than some people use a card, but yet you’ve had no AA on a thin, dirty file that has numerous inquiries and new accounts on it?

Chase, whom typically proves to be selective with their approvals gives you a $5,000 card while you utilization is at 100%?

What is AA? Also chase gave me the CSP on the same day as all my other cards. I know its a sloppy story the way I wrote it... All my credit apps were on the same day except for the cards I opened in 2013. A month after opening all of them I maxed them all out. 3 months later I went from 100% utilization to 15% to 30% utilization where it has been for a few months.

Re: Should I close all my credit and start over...?

Anonymous — Sat, 30 Nov 2019 21:08:54 GMT

@PointsBonus wrote:
@CreditOverMoney

A wise friend once told me "Time fixes everything". With that being said, my humble advice would be, sit tight, use your cards and pay them off, KEEP = CHASE,AMEX, DISC and Vic, Vic "can" grow. The rest....up to you, But I personally had Credit and Capital One with those low limits, but I closed them after AMEX.
Now, your wondering why you should keep ? Simple, time is the BEST medicine for Credit, I mean, TIME with no inq or new accounts (me wayyyyy over 5/24 lol). So, lock all three of yoru bureaus, do not apply for anything, get in the garden, use your cards and pay them off, and i bet 18-24 months from now, you will not recognize your credit score !
Best of luck on your journey !

Thanks! I will follow this advice!

Re: Should I close all my credit and start over...?

FinStar — Sat, 30 Nov 2019 19:32:15 GMT

@Anonymous wrote:
What is AA? Also chase gave me the CSP on the same day as all my other cards. I know its a sloppy story the way I wrote it... All my credit apps were on the same day except for the cards I opened in 2013. A month after opening all of them I maxed them all out. 3 months later I went from 100% utilization to 15% to 30% utilization where it has been for a few months.

AA = Adverse Action (whenever any Financial Institution takes necessary steps to mitigate risk)

Below is a link for the common abbreviations used throughout the forums:

https://ficoforums.myfico.com/t5/User-Guidelines-General/Common-Abbreviations/m-p/88458

Re: Should I close all my credit and start over...?

Anonymous — Sat, 30 Nov 2019 19:33:11 GMT

@Anonymous wrote:
What is AA?

Typically, that means Adverse Action.

It could also be American Airlines. And speaking of them, they offer two cards from different lenders. One from Citi and one from Barclays. You might look into them.

Re: Should I close all my credit and start over...?

Anonymous — Sat, 30 Nov 2019 21:09:44 GMT

@Anonymous wrote:
@Anonymous wrote:
What is AA?

Typically, that means Adverse Action.

It could also be American Airlines. And speaking of them, they offer two cards from different lenders. One from Citi and one from Barclays. You might look into them.

After I typed all that I thought you were telling me to go to alcoholics anonymous. Lol

Re: Should I close all my credit and start over...?

FinStar — Sat, 30 Nov 2019 19:42:32 GMT

@Anonymous wrote:
After I typed all that I thought you were telling me to go to alcoholics anonymous. Lol

Well, under the Personal Section of the forums, we have a Garden Club thread with very supportive members of the community which can help curb some of the credit applications appetite and help you reach certain goals as you navigate through your personal credit journey.

https://ficoforums.myfico.com/t5/Personal-Finance/Garden-Club-November-2019/td-p/5793472

Re: Should I close all my credit and start over...?

Anonymous — Sat, 30 Nov 2019 21:10:13 GMT

@FinStar wrote:
@Anonymous wrote:
After I typed all that I thought you were telling me to go to alcoholics anonymous. Lol
Well, under the Personal Section of the forums, we have a Garden Club thread with very supportive members of the community which can help curb some of the credit applications appetite and help you reach certain goals as you navigate through your personal credit journey.

https://ficoforums.myfico.com/t5/Personal-Finance/Garden-Club-November-2019/td-p/5793472

Thanks. I was afraid of this. Lol... I knew that's where I belonged. Haha! I guess I won't try for a new NFCU card in 2 weeks. Lol

Re: Should I close all my credit and start over...?

HeavenOhio — Sat, 30 Nov 2019 19:47:11 GMT

Welcome, @Anonymous.

Close Credit One and Fingerhut. As you've learned, Credit One is almost always a bad idea. And getting a Credit One card when one already has better cards is pointless.

Keep Discover and Chase. You could go either way with AMEX, but I'd lean toward keeping it too.

The Discover and Chase cards were good moves. Had you been around this forum at the time of your apps, we'd have told you to stop right there. The 1k limit on the AMEX card is an indicator of that. Had you waited six months or so to apply, you'd have probably gotten a limit in line with those from Discover and Chase — maybe even higher.

The NFCU SSL was also a good move. It's going to help some of your scores, and it's not going to interfere when it's time to apply for credit again.

Your next step needs to be to garden. That means not applying for anything, allowing time for your accounts and recent inquiries to age. At minimum, I'd garden until your youngest card is a year old. 18 months to two years would be better.

After gardening, you should be in fine shape to seek more credit. Stick to one card every six months, and that way you won't have issues with too many inquiries or new accounts. Also, once you're below 5/24, a card every six months will keep you there.

Re: Should I close all my credit and start over...?

FinStar — Sat, 30 Nov 2019 19:50:01 GMT

@Anonymous wrote:
Thanks. I was afraid of this. Lol... I knew that's where I belonged. Haha! I guess I won't try for a new NFCU card in 2 weeks. Lol

Well, you definitely want to minimize some of the risks to ensure you're not sticking out like a sore thumb...from a lender's perspective

Also, to help with some navigation and replying to members' posts, below is a handy link that can provide some guidance:

https://ficoforums.myfico.com/t5/Community-Feature-FAQ-s/How-to-Quote-a-Post/td-p/2603189