topic Re: Subprime cards in Credit Cards

Subprime cards

Shmike — Thu, 30 Nov 2023 19:38:58 GMT

Does anyone know if I should close my subprime cards? I have some decent cards and some not so great cards. I was curious to know if perhaps it would be better if I close the sub Prime cards then lenders wouldn't see that I have sub Prime cards. Do they take that into consideration and offering you better cards or greater credit limits? I would just think logically if I were a bank and I saw somebody with a bunch of subprime cards, I don't think I would give them my card or certainly not up great starting limit. Should I try and get the sub primes off my roster? Talking about two Credit One cards $650 & $1200 and an Avant card $500 I also have a Capital One Savor one, $1000 Quicksilver, $600 Walmart rewards $300, Mercury Visa, $1750 Merrick Bank, (double your limit) $1300 and I just got approved for the bread American Express card $6000

Should I ditch at least some of the subprime cards? Thanks in advance for taking the time to read this.

Re: Subprime cards

FireMedic1 — Thu, 30 Nov 2023 20:19:55 GMT

Up to you. They're not hurting anything but building your age and history in your credit file. If any have annual fees. Yes ditch them. The limits you posted are kinda like subprime credit lines. Wait a while and then as more cards come along with bigger banks. The SL's might be higher. Takes time to go prime time.

Re: Subprime cards

coldfusion — Thu, 30 Nov 2023 21:04:21 GMT

Even if you close them now they're going to continue to report on your credit reports for up to another 10 years anyway so don't let that be the deciding factor behind whether or not you choose to close them.

If a card still emperically serves a meaningful and useful purpose it's OK to keep it, if not then feel free to go ahead and close it.

Re: Subprime cards

Shmike — Thu, 30 Nov 2023 21:14:55 GMT

You aren't kidding my scores aren't bad EQ 784 ex 777 tu 773. My average age is only one year 5 months, so I get it. Just wanted to know if the subprints were hurting me, maybe that's why I'm getting such paltry limits? Anyway thanks for your Insight!

Re: Subprime cards

Shmike — Thu, 30 Nov 2023 21:16:32 GMT

Ahhhhhhhh! I miss that one LOL absolutely forgot! Thanks very much I will keep them for a while, considering I closed a couple subprime cards with Annual fees recently. The two credit ones aren't terrible they waive the annual fee this year, so that's not too bad. Thanks for taking the time!

Re: Subprime cards

SouthJamaica — Thu, 30 Nov 2023 21:30:37 GMT

@Shmike wrote:
Does anyone know if I should close my subprime cards? I have some decent cards and some not so great cards. I was curious to know if perhaps it would be better if I close the sub Prime cards then lenders wouldn't see that I have sub Prime cards. Do they take that into consideration and offering you better cards or greater credit limits? I would just think logically if I were a bank and I saw somebody with a bunch of subprime cards, I don't think I would give them my card or certainly not up great starting limit. Should I try and get the sub primes off my roster? Talking about two Credit One cards $650 & $1200 and an Avant card $500 I also have a Capital One Savor one, $1000 Quicksilver, $600 Walmart rewards $300, Mercury Visa, $1750 Merrick Bank, (double your limit) $1300 and I just got approved for the bread American Express card $6000
Should I ditch at least some of the subprime cards? Thanks in advance for taking the time to read this.

In my opinion, yes should start weeding them out, starting with the ones that have an annual or monthly fee. But I would proceed slowly and gradually.

Once you've gotten rid of the ones with fees, you can take stock again. The credit-granting algorithms aren't going to care whether the accounts are prime or sub prime.

Re: Subprime cards

Jeffster1 — Thu, 30 Nov 2023 21:59:02 GMT

Start with dumping the AF cards. Then go after the remaining no-AF subprimes once you can begin replacing them with prime cards.

I never had CreditOne or cards like Avant or Aspire, but I did have Merrick, Mercury and OLLO. As soon as I was able to replace them with prime cards, I closed them.

Re: Subprime cards

Shmike — Fri, 01 Dec 2023 00:05:10 GMT

Yeah I don't mind the Mercury or even the Merrick so much but the credit ones have to go. I did close to First premieres they were terrible and terribly expensive! That was last month, so how long do you think I should wait before I start on the credit ones. Also, I have several hard inquiries so I have to fall back for at least 6 months before I start even thinking about opening new cards! Should I just sit on the subprimes until I'm eligible to open some prime cards? I do have a few Prime cards as well. Quicksilver saver 1 Walmart Rewards and I just got approved for $6,000 on the bread American Express my highest limit to date. Thanks for your insight.

Re: Subprime cards

SouthJamaica — Fri, 01 Dec 2023 05:14:04 GMT

@Shmike wrote:
Yeah I don't mind the Mercury or even the Merrick so much but the credit ones have to go. I did close to First premieres they were terrible and terribly expensive! That was last month, so how long do you think I should wait before I start on the credit ones. Also, I have several hard inquiries so I have to fall back for at least 6 months before I start even thinking about opening new cards! Should I just sit on the subprimes until I'm eligible to open some prime cards? I do have a few Prime cards as well. Quicksilver saver 1 Walmart Rewards and I just got approved for $6,000 on the bread American Express my highest limit to date. Thanks for your insight.

Yes you do have some prime cards. And no you shouldn't be applying for anything new now.

No need to wait on closing the Credit One cards. Just proceed slowly, intervals of at least a month.

Re: Subprime cards

GreatLife — Fri, 01 Dec 2023 07:16:42 GMT

Do any cards have a balance? If so you might want to calculate the new aggregate utilization before canceling any cards.

Re: Subprime cards

Shmike — Fri, 01 Dec 2023 15:53:55 GMT

No I'm doing a z e o with 1% utilization on one card, but my total credit limit is like 12 Grand LOL

Re: Subprime cards

ChargedUp — Fri, 01 Dec 2023 17:28:59 GMT

@Shmike wrote:
No I'm doing a z e o with 1% utilization on one card, but my total credit limit is like 12 Grand LOL

Like others have said, if there's no fees then it's up to you if you choose to keep them. Definitely hold on to Cap One and Bread/Comenity and build your relationship with those lenders. If you don't need the utilization padding that the sub primes are giving you, I personally would cut them off. With this you can concentrate your spend onto cards that reward you decently like Bread and Savor One. Cap One loves being the daily driver in your wallet, and will usually give CLI's for solid spend and PIF. Bread will reward you in a similar way, but in the end, your Bread Amex will grow beyond what your "bucketed" Cap One cards will.

It sounds like you're doing things right and you're off to a great start! As you just recently picked up the Bread Amex, I'd wait about 6 - 9 months before going after anything new, even with dumping the sub primes. This will allow some of your inquiries to fall off/become unscoreable and allow your AAoA's to get older. With your scores, you shouldn't have a problem getting a card or two from any of the majors after this (Chase, BoA, PNC, Citi, Amex, Discover, Citizens, Etc.)

If you haven't, you might also look into building a relationship with a credit union or two. They also can have some great credit offers and come in handy for other things like low interest car loans, PLOC's, and deposit accounts with good returns.

Best of luck and keep up the great work!

Re: Subprime cards

youngandcreditwrthy — Sat, 02 Dec 2023 17:46:10 GMT

no no no , dont start closing cards yet.. let everything age for 6 months and continue asking for CLIs...

you need at least 4-5 more cards with limits like the 6k bread Amex.... also you need to consider more the cost.. like which ones have annual fees.. which ones have the ability to grow.

I've read awful things about avant.

but yeah, which ones have annual fees would be my first question?

also, the name of the lender has ZERO bearing on your score.

Ive literally reviewed credit reports with an 800+ score than had a Credit one card on them with 1000 CL lol.

Re: Subprime cards

Guyatthebeach — Sat, 02 Dec 2023 17:59:41 GMT

@Shmike,

If those sub-prime cards have no annual fees and still offer you some value, keep them open. This is one of those personal choice decisions where there is no right or wrong answer.

For example, I have a Barclays Barnes and Noble Mastercard and a Barclays View card(used to be the Apple Finance card) that I opened right after my bankruptcy. Both have very low limits when compared to my prime cars, but they still offer me enough reward value and will stay open.

Guyatthebeach

Re: Subprime cards

Shmike — Sat, 02 Dec 2023 18:06:41 GMT

Hey man I hope you're getting good weather there at the beach. I appreciate the reply, and insight. Two of them actually still have Annual fees there my credit one cards, the company waves both Annual fees this year because my credit scores are in the upper 700s, and I'm assuming they're afraid to lose me. When I initially started this journey about 3 years ago I was paying a Litany of Interest. I'd say they owe me! LOL my only concern is if other Banks see low limits and subprimes that's what I'm going to continue to get - low limits! I just recently got the bread card on the AmEx Network for $6,000 CL my highest to date! I'm lucky if I break 2000 with my other cards. I don't know how this would work in automation, do they have algorithm to read subprime cards? Or is that just superfluous any card that raises your total credit limit is of value as you said? I don't mind the subprime cards it does add to my total credit limit as I said and the annual fees are either small or workable or waived. There is some redeeming value with cash back and such. I also just closed to First Premier cards that were abhorrent monthly and annual fees! Those had to go clearly. I'm just curious if I do keep them open am I going to keep getting "judged" on them? I hope that's not the case. Ultimately I'd like to weed out all of my subprimes and replace them with prime cards, not to State the obvious. But I don't want it do it too quickly or to the detriment to my entire credit limit. I really appreciate any further insight, if you have experience here. Thanks very much!

Re: Subprime cards

Guyatthebeach — Sat, 02 Dec 2023 18:34:58 GMT

@Shmike,

Since CreditOne is waiving the annual fees, I personally would keep them open and use them once a month or so. When they stop waiving the annual fees, close them.

I personally would not close any additional cards at this time. There really is no need to close them. I also would not worry about the limits either. As long as the card does not exceed 30% utilization, you will be okay from a credit monitoring point of view. The best utilization rate is 10%, and that should be your goal. I would make sure one or two of your cards report with a 10% utilization rate.

At this point in time, I would not apply for any new credit cards. Let these credit cards age, increase your positive payment history, and let those inquiries fall off. This will help your credit score in the long term.

Like others said you need to focus long term on adding other loan types to your credit mix. You look into joining a credit union that offers PLOC's and get one in the near future. It will help your credit mix, and its the gift that keeps on giving. Most banks and CU's report them monthly. Even if you never use it, you have it and it reports. Same thing it's a car loan. Building relationships with credit unions and banks is actually important than credit cards in my opinion.

BTW, the today's beach forecast is 68 degrees, overcast, and 20 mile gusts!

Guyatthebeach

Re: Subprime cards

Shmike — Sat, 02 Dec 2023 19:43:45 GMT

I appreciate the response you're really going to have to pardon my punctuation or lack thereof in this response. Because I just lost my entire question inadvertently, so I'm dictating this one

As far as ploc's they're solely through credit unions? Do I just go to a local credit union by me and ask to take out a loan? Is it something that I'll get a credit card for with a credit limit, or is more traditional loan? How does the spend work, I don't really have anything to take out a loan for currently. However if it's like a credit card I could probably utilize some disposable cash.

Also I was curious because I'm seemingly bucketed by Capital One it's my current banking institution my direct deposit goes there Etc I have three of their cards the savor one Quicksilver Walmart Rewards. I also got the bread Amex with my highest credit limit to date - $6000. Hopefully it's a sign of things to come. I'm definitely going to stop inquiring for new cards, because I have a Litany of credit inquiries so I think I'll lock my credit report and just Coast for a year Garden so to speak. Would that be advisable in your opinion? Should I distance myself from Capital One, perhaps open something with B of A, or chase. I too believe in cultivating relationships with the institutions. However I don't think they have more weight than a positive credit history. Any insight I'd appreciate thanks very much and I'm glad the beach is treating you well

Re: Subprime cards

Shmike — Sat, 02 Dec 2023 19:46:14 GMT

By the way I forgot my credit utilization is basically zero I'm currently a z e o in rotation, but you think it should be a couple of cards with about 10% balance? Do you do a zeo? Thanks

@Shmike wrote:
I appreciate the response you're really going to have to pardon my punctuation or lack thereof in this response. Because I just lost my entire question inadvertently, so I'm dictating this one
As far as ploc's they're solely through credit unions? Do I just go to a local credit union by me and ask to take out a loan? Is it something that I'll get a credit card for with a credit limit, or is more traditional loan? How does the spend work, I don't really have anything to take out a loan for currently. However if it's like a credit card I could probably utilize some disposable cash.
Also I was curious because I'm seemingly bucketed by Capital One it's my current banking institution my direct deposit goes there Etc I have three of their cards the savor one Quicksilver Walmart Rewards. I also got the bread Amex with my highest credit limit to date - $6000. Hopefully it's a sign of things to come. I'm definitely going to stop inquiring for new cards, because I have a Litany of credit inquiries so I think I'll lock my credit report and just Coast for a year Garden so to speak. Would that be advisable in your opinion? Should I distance myself from Capital One, perhaps open something with B of A, or chase. I too believe in cultivating relationships with the institutions. However I don't think they have more weight than a positive credit history. Any insight I'd appreciate thanks very much and I'm glad the beach is treating you well

Re: Subprime cards

SUPERSQUID — Sat, 02 Dec 2023 22:36:48 GMT

@Shmike wrote:
Does anyone know if I should close my subprime cards? I have some decent cards and some not so great cards. I was curious to know if perhaps it would be better if I close the sub Prime cards then lenders wouldn't see that I have sub Prime cards. Do they take that into consideration and offering you better cards or greater credit limits? I would just think logically if I were a bank and I saw somebody with a bunch of subprime cards, I don't think I would give them my card or certainly not up great starting limit. Should I try and get the sub primes off my roster? Talking about two Credit One cards $650 & $1200 and an Avant card $500 I also have a Capital One Savor one, $1000 Quicksilver, $600 Walmart rewards $300, Mercury Visa, $1750 Merrick Bank, (double your limit) $1300 and I just got approved for the bread American Express card $6000
Should I ditch at least some of the subprime cards? Thanks in advance for taking the time to read this.

I was kind of in your shoes but about 1 1/2 years ahead of you and with worse scores.

I closed the really bad subprimes I had slowly as I got better cards , starting with the lowest credit limit, highest interest, and fees.

Personally If I were you I would hang onto the Savor, its a nice card.

I have a few of my original cards like Mercury, Legacy, and First savings bank but just for extra padding.

Cards in your lineup I would close, the Credit One cards, Avant, and Merrick.

Re: Subprime cards

Shmike — Sat, 02 Dec 2023 22:46:10 GMT

Hey man thanks so much for the reply. Obviously the Credit One has a $39 annual fee, which was waved this year. The Avant has a $59 annual fee, and the Merrick card has a $50 fee. Im not terribly worried about the fees, however I was worried about other creditors looking at the caliber cards they are. Also, in closing them it would drastically reduce my credit limit in its entirety. So I definitely need to let my garden grow so to speak, and get some of these hard inquiries off my credit reports. My scores seem strong enough, and I think we'll continue to grow with minimal maintenance. So that's my plan for the near future, say 6 to 12 months. Obviously pruning my cards with credit limit increases in the interim. Then perhaps I can consider closing some of the annual fee subprimes, after having secured higher limits, on Prime cards. Your views? Thanks very much! Also, I'm currently doing the azeo method. I'm rotating about a 1% balance on each card monthly then paying it off in full before it's due. I'm reading mixed reviews on the a z e o method. Any insight?