topic Re: Advice for a strategy in Credit Cards

Advice for a strategy

RobD3 — Wed, 15 Jan 2020 00:50:09 GMT

I'm now in the low 700`s across the board. Before I began learning so much here in these forums, I think I made a few mistakes during a rebuild and I'd like a little advice on the best way to deal with things going forward.

Bof A Visa 1300/2300 8 yrs old

Commerce Visa 5000/5500 6 yrs old

Kay 300/10,000 8 yrs old

Credit1 V & MC 0/1200 & 0/1050 3 yrs old

Cap1 MC 0/300 3 yrs old BUCKETED

Kohl's, Williams-Sonoma, Valero 0/1000 combined 6 mos.

A few lates about 3 years ago.

I just received (within the last week) a new Discover for $1k, and a new NFCU Signature cashrewards visa for $15k. Both are 0% utilization .

Looking forward, I'd like to get utilization at 3% on the first 2 and cancel the C1`s, the Cap1 and all the store cards, except for the $10k Kays which I'll keep. I'd like to get positioned for Chase and/or Amex and it's reasonable for me to pay off the highly utilized accounts in about 3 months and then garden. Will I have to garden for 2 years for chase 5/24 due to the store cards? Might I be in a position for a straight or cobranded Amex any sooner? Thanks so much for any guidance or suggestions...

Re: Advice for a strategy

Girlzilla88 — Wed, 15 Jan 2020 01:16:42 GMT

If I'm reading your information correctly you only have a few under the 24 month period so you wouldn't be over the 5/24?!?! Me personally I would opt for an Amex the same day you try for the Chase but that is just me personally and what I did when I recieved both But of course after you drop down the Utilization and no touchy the inquiries for a few months

Re: Advice for a strategy

RobD3 — Wed, 15 Jan 2020 01:24:50 GMT

Kohls Comenity

Williams-Sonoma Comenity

Valero DSRM

Discover

NFCU VISA = 5

Re: Advice for a strategy

SlideOrInsert — Wed, 15 Jan 2020 01:30:29 GMT

what is your motivation for chase/amex?

have you thought about balance transferring everything to your nfcu for 12 month promo @1.99%?

is there a reason you chose the nfcu visa? they have an amex offering. maybe product change OR at 91/3 apply for the amex for another large-ish limit?

Re: Advice for a strategy

thornback — Wed, 15 Jan 2020 01:42:14 GMT

@RobD3 wrote:
I'm now in the low 700`s across the board. Before I began learning so much here in these forums, I think I made a few mistakes during a rebuild and I'd like a little advice on the best way to deal with things going forward.
Bof A Visa 1300/2300 8 yrs old
Commerce Visa 5000/5500 6 yrs old
Kay 300/10,000 8 yrs old
Credit1 V & MC 0/1200 & 0/1050 3 yrs old
Cap1 MC 0/300 3 yrs old BUCKETED
Kohl's, Williams-Sonoma, Valero 0/1000 combined 6 mos.
A few lates about 3 years ago.
I just received (within the last week) a new Discover for $1k, and a new NFCU Signature cashrewards visa for $15k. Both are 0% utilization .
Looking forward, I'd like to get utilization at 3% on the first 2 and cancel the C1`s, the Cap1 and all the store cards, except for the $10k Kays which I'll keep. I'd like to get positioned for Chase and/or Amex and it's reasonable for me to pay off the highly utilized accounts in about 3 months and then garden. Will I have to garden for 2 years for chase 5/24 due to the store cards? Might I be in a position for a straight or cobranded Amex any sooner? Thanks so much for any guidance or suggestions...

Hi Rob, welcome to the forums & Congrats on your new approvals.

Did your new NFCU come with a 0% Balance Transfer promo offer? If so, I'd move that balance (either all or some) from Commerce Visa to NFCU (assuming you can pay it off before the promo ends) -- you're in max util territory on that Commerce card and putting that entire balance on the $15K NFCU would be much better - scorewise - at 36% util.

How many are a 'few lates' and what are their severities (30, 60, 90-day)? Have you tried a Goodwill campaign to have them removed? If not, you should.

Aside from that, yes, you will need to garden til you're under 5/24 for Chase.

While, depending on the number and severity of those lates, your odds for Amex (cobranded or straight) may be decent -- your starting limit may be affected (lower than you may want) by current util.

Re: Advice for a strategy

Girlzilla88 — Wed, 15 Jan 2020 01:41:08 GMT

Got ya I missed the Valero for some reason....See if you agree with the person above me

Re: Advice for a strategy

RobD3 — Wed, 15 Jan 2020 02:21:09 GMT

I never had even heard of NFCU except through these forums as they don't really do a lot of marketing. As a veteran and being eligible I decided it would be a good fit and a nice step towards diversity to have a good relationship with a CU and not just my primary bank, BofA. I've worked hard to recover my credit from some steep medical bills and NFCU has been gracious with their SL on my new Visa. I'm not sure about their rules for PC's, so maybe there is some knowledge here that could be shared about that. Doing a BT would not change overall utilization after the new accounts are factored, but would lessen overall interest expense which would be that much more helpful. Right now, efforting cash back rewards is fun, educational and is a great and constant reminder of a credit leveraging mindset. I'd like to position for Amex and Chase because it's just my wife and me, and now we both have exceptional incomes and have realized that paying with cash directly or through debit is EXTREMELY expensive once one considers all the missed rewards and SUB's to be had and managed for our benefit. We have finally realized that we could do SO MUCH MORE and enjoy life at a different level just by changing small self defeating habits and exerting daily efforts with smarter decisions. MyFico forums and all the folks here have been sooooo helpful and articulate and have really opened our eyes to mistakes of the past and how to recover and excel. Lol....Dave Ramsey is a great guy, but he isn't right about everything. Should I cancel the recently acquired tiny SL store cards, Cap 1 and both the Credit 1's? I have heard of a goodwill campaign, but haven't heard that it's been effective. If I'm I'll informed then I'm happy to launch on that!

Re: Advice for a strategy

thornback — Wed, 15 Jan 2020 02:19:41 GMT

@RobD3 wrote:
I'm not sure about their rules for PC's, so maybe there is some knowledge here that could be shared about that. Doing a BT would not change overall utilization after the new accounts are factored, but would lessen overall interest expense which would be that much more helpful.

I'm not sure about NFCU PC rules either (i never paid much attention because it's not of interest to me) but you can search the forum for 'NFCU PC' and see what comes up -- i'm sure this Q has been addressed.

Correct -- a BT would not change overall util, but it will change individual util - which also affects scoring. Your Commerce card is maxed out and - if it remains that way for an extended period of time - has the potential to result in some form of adverse action - be it balance chasing or hindering credit limit increases on other cards. And yes, of course, eliminating the interest rate would be financially prudent & helpful.

Re: Advice for a strategy

Anonymous — Wed, 15 Jan 2020 02:33:48 GMT

You're getting good advice here and I don't have anything to add but NFCU PCs are easy. Call them and tell them you would like to PC to a different card and they'll do it. Just keep in mind when you do this, your APR could get hiked because the system processes it as a new card approval and that's based off your last NFCU EQ 9 FICO score and credit report. I PC'd my cashRewards in February to More Rewards and my APR went to 17.24 from 11.4. I PC'd it back to cashRewards in June or July and my APR stayed the same. I was told I can request a reduction in February.

Re: Advice for a strategy

mikesonthemend — Wed, 15 Jan 2020 02:38:22 GMT

@thornback wrote:
Correct -- a BT would not change overall util, but it will change individual util - which also affects scoring. Your Commerce card is maxed out and - if it remains that way for an extended period of time - has the potential to result in some form of adverse action - be it balance chasing or hindering credit limit increases on other cards. And yes, of course, eliminating the interest rate would be financially prudent & helpful.

this this this

Re: Advice for a strategy

RobD3 — Wed, 15 Jan 2020 02:42:25 GMT

Do I need to wait 91/3 to PC? If I were to BT now at 1.99, would that transfer to the PC. How would the PC be regarded report and score wise?

Re: Advice for a strategy

mikesonthemend — Wed, 15 Jan 2020 02:45:53 GMT

@RobD3 wrote:
Do I need to wait 91/3 to PC? If I were to BT now at 1.99, would that transfer to the PC. How would the PC be regarded report and score wise?

Hopefully I will be corrected if wrong, but NCFU cards are in 3 categories. As long as you stay within the same category your interest rate will not change.

Re: Advice for a strategy

Anonymous — Wed, 15 Jan 2020 02:52:03 GMT

@RobD3 wrote:
Do I need to wait 91/3 to PC? If I were to BT now at 1.99, would that transfer to the PC. How would the PC be regarded report and score wise?

I wouldn't think PC would affect a BT because the 1.99% is available across cards but what you could also do is call and do the PC and then do the BT.

PC is literally just the card number gets updated with the credit bureau. Same account, same length, no score impact.

Re: Advice for a strategy

RobD3 — Wed, 15 Jan 2020 02:53:31 GMT

Do I have to wait the 91/3?

Re: Advice for a strategy

Anonymous — Wed, 15 Jan 2020 02:54:16 GMT

@RobD3 wrote:
Do I have to wait the 91/3?

No you don't have to wait til 91/3 because it's not a new account or CLI.

Re: Advice for a strategy

RobD3 — Wed, 15 Jan 2020 03:14:41 GMT

What is your opinion on closing the recently acquired store cards, Valero, the Capital One, and the Credit One Visa and Mastercards? Overall do you think that will hurt my score any if at all?

Re: Advice for a strategy

JNA1 — Wed, 15 Jan 2020 03:14:53 GMT

I really wish I was eligible for NFCU! 🙈😢

Re: Advice for a strategy

Anonymous — Wed, 15 Jan 2020 03:44:05 GMT

@RobD3 wrote:
What is your opinion on closing the recently acquired store cards, Valero, the Capital One, and the Credit One Visa and Mastercards? Overall do you think that will hurt my score any if at all?

If it has an annual fee and doesn't get used, get rid of it but store cards can make for nice padding since they can grow quite large so I would keep them.

At minimum, I would keep any card for a year so you don't risk burning bridges with that lender although in the case if Credit One, douse that bridge with gasoline and send it to Hades IMO.

You already took the inquiries and age of account hits for the new accounts, might as well keep them.

Re: Advice for a strategy

Girlzilla88 — Wed, 15 Jan 2020 14:16:51 GMT

@Anonymous wrote:
@RobD3 wrote:
What is your opinion on closing the recently acquired store cards, Valero, the Capital One, and the Credit One Visa and Mastercards? Overall do you think that will hurt my score any if at all?
If it has an annual fee and doesn't get used, get rid of it but store cards can make for nice padding since they can grow quite large so I would keep them.

At minimum, I would keep any card for a year so you don't risk burning bridges with that lender although in the case if Credit One, douse that bridge with gasoline and send it to Hades IMO.

You already took the inquiries and age of account hits for the new accounts, might as well keep them.

I would agree with the year part as well as the Credit One LOLOLOL