topic Re: Would it be wise for me to remove First Progress credit card? in Credit Cards

Would it be wise for me to remove First Progress credit card?

DarkKnight_Credit — Tue, 16 Feb 2021 19:16:13 GMT

Hi everyone,

I started rebuilding my credit for quite some time. I went from 480 (in 2018) to around the 670s recently. With that said, I have 3 cards so far, which is American Express, Capital One, and First Progress. I got pre approved for a Discovered card today and I was wondering would it be wise to replace First Progress with Discover Card?

My average age of credit is 9 months:

Capital One - 1 year, 7 months
First Progress - 7 months
American Express - 2 months

I used First Progress, because I was advised to use it by a credit builder company. And the total line of credit is only $200. Would this be an ok decision for me to get Discover and remove First Progress?

Thanks!

Re: Would it be wise for me to remove First Progress credit card?

RSX — Tue, 16 Feb 2021 19:21:32 GMT

is there a monthly or annual fee for it? if so, keep it until it is 1yr old, then close it

if no AF, throw it in a drawer - let them close it for lack of use, but meanwhile you will get some aging with it

I would wait 2-3 more months before going for the Discover - you have 2 cards in the last 7 months - give it some time

too soon between apps can mean the highest APR and the lowest CL to start with

Re: Would it be wise for me to remove First Progress credit card?

thornback — Tue, 16 Feb 2021 19:34:55 GMT

Yes. Secure your Disco approval first and wait for it to report. Then go ahead and close First Progress if you want.

Closed accounts remain on your reports for ~10 years after the date of closure and continue to age and factor into your age of accounts during that time. The only thing lost from closure is the credit limit. You'll lose the age when it falls off years down the road, but since it's not your oldest card, any point loss at that time should be insignificant.

Alternatively, you could wait til First Progress ages to the one year mark then close it (this would be for the sake of a longer, fuller on-time payment history). However, if the card is charging monthly fees to keep it open, then close it right away. If it's annual fee, close right before the next fee is billed.

Bottom line:

Scorewise, closing it won't hurt. If there are fees associated- save your money. If the card is free to hold - then consider hanging onto it for a bit longer to help build a stronger profile and only charging something small every few months to keep it active -- but if you don't want to be bothered, don't hesitate to close it

Re: Would it be wise for me to remove First Progress credit card?

thornback — Tue, 16 Feb 2021 19:36:41 GMT

@RSX wrote:

I would wait 2-3 more months before going for the Discover - you have 2 cards in the last 7 months - give it some time
too soon between apps can mean the highest APR and the lowest CL to start with

^^This is a good point. You have a young profile so may benefit from spacing out your apps a bit.

Re: Would it be wise for me to remove First Progress credit card?

DarkKnight_Credit — Tue, 16 Feb 2021 19:41:31 GMT

Thanks for the tips, everyone! With that said, I'll go ahead and wait until First Progress hits the 1 year mark and start applying for new cards by then. And removing the card afterwards. I should hit up a few points by then

@RSX wrote:
is there a monthly or annual fee for it? if so, keep it until it is 1yr old, then close it

if no AF, throw it in a drawer - let them close it for lack of use, but meanwhile you will get some aging with it

I would wait 2-3 more months before going for the Discover - you have 2 cards in the last 7 months - give it some time
too soon between apps can mean the highest APR and the lowest CL to start with

What does that mean? If I apply for a credit now, I would have a higher APR and a lower credit limit, compared to 2-3 months from now?

Re: Would it be wise for me to remove First Progress credit card?

K-in-Boston — Tue, 16 Feb 2021 19:42:45 GMT

There are no guarantees with credit limits and APRs, but as a general rule the more time one can place between recent credit-seeking and a new application, the more favorable the terms.

Re: Would it be wise for me to remove First Progress credit card?

thornback — Tue, 16 Feb 2021 19:48:48 GMT

@DarkKnight_Credit wrote:
What does that mean? If I apply for a credit now, I would have a higher APR and a lower credit limit, compared to 2-3 months from now?

"Credit seeking behavior" may result in a higher apr and lower limit, yes. Has nothing to do with your actual scores or payment history. 6 months is the recommended safe zone for time between apps.

That said, you may do just fine. Disco likes young/thin profiles and isn't super sensitive to new accounts. They also do apr reductions so you could reduce a high apr over time.

Re: Would it be wise for me to remove First Progress credit card?

DarkKnight_Credit — Tue, 16 Feb 2021 19:50:37 GMT

@thornback wrote:
@DarkKnight_Credit wrote:
What does that mean? If I apply for a credit now, I would have a higher APR and a lower credit limit, compared to 2-3 months from now?
"Credit seeking behavior" may result in a higher apr and lower limit, yes. Has nothing to do with your actual scores or payment history. 6 months is the recommended safe zone for time between apps.

That said, you may do just fine. Disco likes young/thin profiles and isn't super sensitive to new accounts. They also do apr reductions so you could reduce a high apr over time.

Ineteresting. I didn't know about that. I'll keep that in mind. Thanks!

Re: Would it be wise for me to remove First Progress credit card?

Remedios — Tue, 16 Feb 2021 19:55:02 GMT

Your APR is going to be high (ish), but since you're rebuilding you shouldn't be carrying balances anyway.

What does pre-approval lists for APR?

Re: Would it be wise for me to remove First Progress credit card?

DarkKnight_Credit — Tue, 16 Feb 2021 19:57:43 GMT

@Remedios wrote:
Your APR is going to be high (ish), but since you're rebuilding you shouldn't be carrying balances anyway.

What does pre-approval lists for APR?

I think it's around 22% for the pre-approval.

Re: Would it be wise for me to remove First Progress credit card?

thornback — Tue, 16 Feb 2021 20:03:35 GMT

@DarkKnight_Credit wrote:
@Remedios wrote:
Your APR is going to be high (ish), but since you're rebuilding you shouldn't be carrying balances anyway.

What does pre-approval lists for APR?

I think it's around 22% for the pre-approval.

Yeah thats already on the highend. IIRC, Disco's low is 12.99%...(? maybe lower now due the fed rate reduction).

Re: Would it be wise for me to remove First Progress credit card?

Remedios — Tue, 16 Feb 2021 20:09:31 GMT

@DarkKnight_Credit wrote:
@Remedios wrote:
Your APR is going to be high (ish), but since you're rebuilding you shouldn't be carrying balances anyway.

What does pre-approval lists for APR?

I think it's around 22% for the pre-approval.

Is Amex reporting yet?

Re: Would it be wise for me to remove First Progress credit card?

DarkKnight_Credit — Tue, 16 Feb 2021 20:11:26 GMT

@thornback wrote:
@DarkKnight_Credit wrote:
@Remedios wrote:
Your APR is going to be high (ish), but since you're rebuilding you shouldn't be carrying balances anyway.

What does pre-approval lists for APR?

I think it's around 22% for the pre-approval.
Yeah thats already on the highend. IIRC, Disco's low is 12.99%...(? maybe lower now due the fed rate reduction).

That would be for users with good credit, right? All of my credit cards is above 20%.

Re: Would it be wise for me to remove First Progress credit card?

DarkKnight_Credit — Tue, 16 Feb 2021 20:13:40 GMT

@Remedios wrote:
@DarkKnight_Credit wrote:
@Remedios wrote:
Your APR is going to be high (ish), but since you're rebuilding you shouldn't be carrying balances anyway.

What does pre-approval lists for APR?

I think it's around 22% for the pre-approval.
Is Amex reporting yet?

Yea, Amex reported last week for the fist time. So my score jumped up +6 points with Transunion and Equifax. Around 16 points with Experian. My highest score is 677.

Re: Would it be wise for me to remove First Progress credit card?

thornback — Tue, 16 Feb 2021 20:15:22 GMT

@DarkKnight_Credit wrote:
@thornback wrote:
@DarkKnight_Credit wrote:
@Remedios wrote:
Your APR is going to be high (ish), but since you're rebuilding you shouldn't be carrying balances anyway.

What does pre-approval lists for APR?

I think it's around 22% for the pre-approval.
Yeah thats already on the highend. IIRC, Disco's low is 12.99%...(? maybe lower now due the fed rate reduction).
That would be for users with good credit, right? All of my credit cards is above 20%.

Yeah - clean reports (no negatives/derogs), low-moderate util, somewhat aged, no recent credit seeking.

Re: Would it be wise for me to remove First Progress credit card?

DarkKnight_Credit — Tue, 16 Feb 2021 20:17:01 GMT

@thornback wrote:
@DarkKnight_Credit wrote:
@thornback wrote:
@DarkKnight_Credit wrote:
@Remedios wrote:
Your APR is going to be high (ish), but since you're rebuilding you shouldn't be carrying balances anyway.

What does pre-approval lists for APR?

I think it's around 22% for the pre-approval.
Yeah thats already on the highend. IIRC, Disco's low is 12.99%...(? maybe lower now due the fed rate reduction).
That would be for users with good credit, right? All of my credit cards is above 20%.

Yeah - clean reports (no negatives/derogs), low-moderate util, somewhat aged, no recent credit seeking.

Ah ok, gotcha. My reports are nearly clean. The only negative I have right now is Santander Auto, but I paid for settle, which jumped +25 points in November. That was how I was able to get Amex I think.

Re: Would it be wise for me to remove First Progress credit card?

thornback — Tue, 16 Feb 2021 20:23:57 GMT

Yes, Amex is usually willing to give you a shot if your outstanding debts are paid.

Congrats on all of your progress so far - youre almost there!

IMO, app for Disco whenever you're ready - i think you'll be fine and their pre-approvals are usually pretty solid. But once approved - thats it - go sit in the Garden til your youngest turns a year old.

Re: Would it be wise for me to remove First Progress credit card?

DarkKnight_Credit — Tue, 16 Feb 2021 20:28:16 GMT

Thanks! It took time and a lof of hard work, but it's paying off!

I'll probably get discover within a few months.

Re: Would it be wise for me to remove First Progress credit card?

Remedios — Tue, 16 Feb 2021 20:31:57 GMT

Just go for it when you're ready

Worst case scenario, you end up with HP. That's hardly end of the world.

Best case scenario, you end up with a great card, and lose a free harvester, which is what FP is.

Meanwhile, did you try to PC your cap one to QS yet?

Re: Would it be wise for me to remove First Progress credit card?

thornback — Tue, 16 Feb 2021 20:33:15 GMT

@DarkKnight_Credit wrote:
Thanks! It took time and a lof of hard work, but it's paying off!

I'll probably get discover within a few months.

Been there, done that! So I completely understand the work that goes into it. Take pride in your achievements - it's not easy.

Be sure to keep us all updated - good luck with the rest of your rebuild - and welcome to the forums!