topic Re: Next move .... if any in Credit Cards

Next move .... if any

Anonymous — Mon, 23 May 2011 13:34:04 GMT

Current Situation / Accounts

Orchard Bank Opened 02/2007 Limit $700 / $0 Balance

Credit One Bank Opened 08/2007 Limit $1325 / $0 Balance

Chase Opened 09/2007 Limit $3500 / $0 Balance -- account closed by them when they switched from wamu

Dell Opened 06/2008 Limit $6500 / $0 Balance

Capital One Opened 07/2008 Limit $1500 / $0 Balance

Capital One Opened 08/2009 Limit $1500 / $0 Balance

Wal Mart Opened 09/2010 Limit $ 700 / $0 Balance

Car Loan Opened 06/2007 $6000 Balance

I also have an 8 year old bankruptcy.

Was wanting to hear everyone's ideas on what to do next. I just recently ( 1 month ago ) got done paying off my last few cards with balances and was thinking I would like to close the old starter cards. I was also considering opening 2 new ( actually good ) cards, 1 strictly for internet use and the other for everyday use.

Questions

What cards should I cancel?

How soon after paying everything off should I start looking at new cards?

I am planning on purchasing a new car at the end of the year, will it hurt anything to be applying for credit cards over the next few months?

Almost forgot, thanks to everyone that contributes to these forums. This is a pretty cool community.

Re: Next move .... if any

clocktick — Tue, 24 May 2011 15:45:11 GMT

Do any of your current cards have a AF? How long will your BK be on your reports, 10 years?

Some cards (Citi, I think) have virtual account numbers you can use for online purchases so there's no risk of someone getting your actual card number - definitely something to look into, unless you wanted an online card for other reasons. What kind of cards are you looking for and why (rewards, 0% interest, future balance transfers, etc.)?

Re: Next move .... if any

llecs — Mon, 23 May 2011 14:22:19 GMT

Be sure to read fused's Closing Credit Cards .

Congrats on the debt paydown!

Is there a reason why you'd want to close any CCs (e.g. fees, etc)?

If I had that going, and if I financed a car, then I personally would wait until after the car to get the CC. New credit can sometimes ding some and you wouldn't want to jeopardize a lower car APR because of a new CC. Though I'd also consider opening a new CC or two, maybe from a CU, after the car purchase. If I had that I'd also consider closing Orchard and Credit One to start, but I'd also wait until after the car.

ETA...clocktick is a faster typer.

Re: Next move .... if any

DI — Mon, 23 May 2011 14:23:01 GMT

Although its your oldest card, I'd cancel the Orchard if you pay an AF. Other than that things look nice. You're doing an exceptional job managing your credit post BK. I'd wait another year or two before adding more accounts. That'd give your BK more time to age. Do you really need a new car at the end of the year? Are you planning to finance? If you cannot get a really low APR on the new car loan, I'd wait until the BK is gone.

Re: Next move .... if any

Anonymous — Mon, 23 May 2011 14:52:16 GMT

Clocktick -- The two cards that have AF's are the Orchard Bank and the Credit One Bank cards. Unfortunately they are also my oldest two cards. And yes my bankruptcy will be on my reports for 10 years, only two more to go I had my eye on a decent rewards type card as I have zero intention of carrying balances so interest rate does not matter ( hopefully ).

llec -- Thanks for the link to closing credit cards

DI -- No I don't need a new car, heck nobody needs one. But that sure doesn't stop me from really wanting one, though I am sure my practical side will have talked me out of it come time to purchase. Though I have been ranting about getting out of my car and back into a SUV now for years so maybe there is a chance that my friends and family are sick of it to the point where they will chip in on the new SUV

So the consensus seems to be to wait to close or open any new credit cards until after I purchase a car? If I decide that I won't be purchasing a new car, are there any other factors that should cause me to wait to close Orchard and Credit One? After reading the Closing Credit Cards sticky from llec it seems like it should be okay since they are paid down to $0.

Thanks for such quick advice everyone.

Re: Next move .... if any

Anonymous — Mon, 23 May 2011 14:58:06 GMT

Also wanted to say that the main reason for getting two new cards is for my own peace of mind. I do a lot of internet shopping and I would feel more comfortable using a credit card as opposed to my debit card that I use now. Same goes for real life I suppose. I know they say that the debit card offers the same protections as a credit card as far as fraudulent charges are concerned, but atleast with the credit card the money isn't missing out of my bank account and I have time to dispute it.

So I guess that is a long winded way of saying that I am in no particular hurry for the new credit cards, just wanted a little more securit / peace of mind and also maybe the rewards that some of them have.

Re: Next move .... if any

DI — Mon, 23 May 2011 15:19:22 GMT

@Anonymous wrote:
Clocktick -- The two cards that have AF's are the Orchard Bank and the Credit One Bank cards. Unfortunately they are also my oldest two cards. And yes my bankruptcy will be on my reports for 10 years, only two more to go I had my eye on a decent rewards type card as I have zero intention of carrying balances so interest rate does not matter ( hopefully ).

llec -- Thanks for the link to closing credit cards

DI -- No I don't need a new car, heck nobody needs one. But that sure doesn't stop me from really wanting one, though I am sure my practical side will have talked me out of it come time to purchase. Though I have been ranting about getting out of my car and back into a SUV now for years so maybe there is a chance that my friends and family are sick of it to the point where they will chip in on the new SUV

So the consensus seems to be to wait to close or open any new credit cards until after I purchase a car? If I decide that I won't be purchasing a new car, are there any other factors that should cause me to wait to close Orchard and Credit One? After reading the Closing Credit Cards sticky from llec it seems like it should be okay since they are paid down to $0.

Thanks for such quick advice everyone.

Everytime I get new car fever, I take my SUV to get it cleaned and shined. After that, I feel like I'm driving a new car.

Re: Next move .... if any

Anonymous — Mon, 23 May 2011 15:30:59 GMT

Everytime I get new car fever, I take my SUV to get it cleaned and shined. After that, I feel like I'm driving a new car.

Well thats not fair, you already have your SUV. Though good point on cleaning my car, it could really use it.

Sorry to get off topic.

Re: Next move .... if any

Anonymous — Mon, 23 May 2011 18:18:34 GMT

@Anonymous wrote:
Also wanted to say that the main reason for getting two new cards is for my own peace of mind. I do a lot of internet shopping and I would feel more comfortable using a credit card as opposed to my debit card that I use now. Same goes for real life I suppose. I know they say that the debit card offers the same protections as a credit card as far as fraudulent charges are concerned, but atleast with the credit card the money isn't missing out of my bank account and I have time to dispute it.

So I guess that is a long winded way of saying that I am in no particular hurry for the new credit cards, just wanted a little more securit / peace of mind and also maybe the rewards that some of them have.

So, nigel, Can you earmark one of your current cards (i.e. one of your Cap One's) for internet shopping? And earmark another (maybe the other Cap One) for your go-to real life spending?

And, if you're taking votes, I'd cast my vote for closing the AF cards. You'll still have four cards open - that's plenty. Opening a new cc isn't going to give you any FICO points and you may lose a few.

And I love DI's idea of going in for a nice car wash when you get new car fever - smart! For me, I look at my spreadsheet everytime I get car fever and it helps to get me excited about value-to-loan and such. I love the concept of being car debt-free. It makes my toes tingle!

Re: Next move .... if any

Anonymous — Mon, 23 May 2011 18:26:00 GMT

Hey nigel,

I just read through your previous posts from last fall. Looks like you've made great strides in paying down your cards since then. So, I wonder what your FICO score currently is - I know you posted it back then. It will be fun, after you know the accounts have reported the zero utilization to see what your score is sitting at.

And, of course, for best FICO scores, remember to let all accounts but one report a zero balance; with the remaining account reporting less than 9%.

Your Walmart card is a GEMB, so they are likely to give you CLI's after every fourth statement cuts. That's potentially 3 CLI's a year from them. Might be worth working them as you move forward.

Re: Next move .... if any

Anonymous — Mon, 23 May 2011 20:03:56 GMT

I would close the AF cards. Then I would wait until the BK is off the CR. Then pick what you want.

Re: Next move .... if any

Anonymous — Tue, 24 May 2011 04:58:27 GMT

beamMeup wrote:
So, nigel, Can you earmark one of your current cards (i.e. one of your Cap One's) for internet shopping? And earmark another (maybe the other Cap One) for your go-to real life spending?
And, if you're taking votes, I'd cast my vote for closing the AF cards. You'll still have four cards open - that's plenty. Opening a new cc isn't going to give you any FICO points and you may lose a few.

And I love DI's idea of going in for a nice car wash when you get new car fever - smart! For me, I look at my spreadsheet everytime I get car fever and it helps to get me excited about value-to-loan and such. I love the concept of being car debt-free. It makes my toes tingle!

Using the Cap1's for internet and real shopping is probably my best bet. It looks like I would have to wait until my bankruptcy fell off to get a good rewards card anyway. The only reason to apply for a new card now is to find one that would do CLI's on a somewhat regular basis as we all know Cap1 will not. But as you said that is probably not even worth it.

And yes I suppose I am taking votes for closing cards. I suspect it will be overwhelmingly in favor of closing Orchard and Credit1 but I am interested in everyones thoughts.

Also, it does feel awesome to have everything paid off ( except current car loan of course). Thanks for the kind words from everyone.

Re: Next move .... if any

Anonymous — Tue, 24 May 2011 07:39:04 GMT

@Anonymous wrote:

beamMeup wrote:
So, nigel, Can you earmark one of your current cards (i.e. one of your Cap One's) for internet shopping? And earmark another (maybe the other Cap One) for your go-to real life spending?
And, if you're taking votes, I'd cast my vote for closing the AF cards. You'll still have four cards open - that's plenty. Opening a new cc isn't going to give you any FICO points and you may lose a few.

And I love DI's idea of going in for a nice car wash when you get new car fever - smart! For me, I look at my spreadsheet everytime I get car fever and it helps to get me excited about value-to-loan and such. I love the concept of being car debt-free. It makes my toes tingle!

Using the Cap1's for internet and real shopping is probably my best bet. It looks like I would have to wait until my bankruptcy fell off to get a good rewards card anyway. The only reason to apply for a new card now is to find one that would do CLI's on a somewhat regular basis as we all know Cap1 will not. But as you said that is probably not even worth it.

And yes I suppose I am taking votes for closing cards. I suspect it will be overwhelmingly in favor of closing Orchard and Credit1 but I am interested in everyones thoughts.

Also, it does feel awesome to have everything paid off ( except current car loan of course). Thanks for the kind words from everyone.

Any idea where your FICO's are right now? It might be very helpful to see the progress with the utilization paid down, and it may help folks know if there's a rewards/growable card they could recommend to you. I'm wondering if Alliant CU would work. They do take old BK's - I can't remember right now how old - perhaps someone can chime in. Barclays reward cards may take old BK's as well. There's probably a few others. Our local CU does a rewards card with old BK's - it's a cash back card.

Re: Next move .... if any

Anonymous — Tue, 24 May 2011 08:00:58 GMT

beamMEup wrote:
Any idea where your FICO's are right now? It might be very helpful to see the progress with the utilization paid down, and it may help folks know if there's a rewards/growable card they could recommend to you. I'm wondering if Alliant CU would work. They do take old BK's - I can't remember right now how old - perhaps someone can chime in. Barclays reward cards may take old BK's as well. There's probably a few others. Our local CU does a rewards card with old BK's - it's a cash back card.

I don't know exactly where my FICO scores are at right now. I have been waiting for my accounts to report as I just finished paying a few of them off the last week or so of April. I am really anxious to check the scores though. How long should I wait?

And I think you were probably right in waiting on the new card, though I would like to get one that has the possiblity of CLI's as none of my current ones really do ( except for Dell I suppose). I could probably live without a rewards one right now and wait until after bankruptcy has fallen off to apply for a really good one.

My best guess for FICO's is hopefully slightly above 700. Best I can remember my scores were 690 or so 5 or 6 months ago with 60% to 70% utilization. Can't wait to check.

Re: Next move .... if any

Anonymous — Tue, 24 May 2011 10:42:36 GMT

Well my impatience got the better of me and I pulled my EQ score. I am now a member of the 700 club. And by 700 club I mean EXACTLY 700. To my suprise all of my accounts had already reported being paid down to $0.

Now, assuming I don't give in to impulses and get a new car at the end of the year what should my next steps be? I would like to get a card that I can work the CL up on but if it is not going to necessarily help my score should I bother?

My current utiliztion shows at 1%. Should I try and keep it up at 5% to 7% or does it really matter?

Also, if it matters, I do intend on purchasing a home around 3 years from now. Atleast that is my current plan, lord knows it is always changing.

Thanks for reading and replying. I really do appreciate it and all of the other very useful information in this community.

Re: Next move .... if any

DI — Tue, 24 May 2011 11:10:02 GMT

@Anonymous wrote:
Well my impatience got the better of me and I pulled my EQ score. I am now a member of the 700 club. And by 700 club I mean EXACTLY 700. To my suprise all of my accounts had already reported being paid down to $0.

Now, assuming I don't give in to impulses and get a new car at the end of the year what should my next steps be? I would like to get a card that I can work the CL up on but if it is not going to necessarily help my score should I bother?

My current utiliztion shows at 1%. Should I try and keep it up at 5% to 7% or does it really matter?

Also, if it matters, I do intend on purchasing a home around 3 years from now. Atleast that is my current plan, lord knows it is always changing.

Thanks for reading and replying. I really do appreciate it and all of the other very useful information in this community.

I can tell you it feels good to not have a car note! My car has been paid off ever since January '10. It's still working just fine without major problems. I'm keeping it until the wheels fall off or until I become wealthy. Since I'm in South Florida where a hurricane can hit and wipe us out, material things are not a biggie to me.

Re: Next move .... if any

Anonymous — Tue, 24 May 2011 11:28:42 GMT

@DI wrote:
I can tell you it feels good to not have a car note! My car has been paid off ever since January '10. It's still working just fine without major problems. I'm keeping it until the wheels fall off or until I become wealthy. Since I'm in South Florida where a hurricane can hit and wipe us out, material things are not a biggie to me.

That is exactly what I was originally planning on doing with my new SUV. Buy exactly what I want - model, color, features, etc. then keep it until it rusts apart. I have never done that with a vehicle, I have always purchased what was good enough to get me by for now. Though I admit, my current car is perfectly capable of getting me by. And that is probably what I will do, pay it off and see what it feels like to go without a car payment for a while before deciding whether or not to committ to a new payment.

Between your hurricanes, my tornadoes, the south's flooding and all of the other crap we all deal with material things should not be a biggie to anybody. Unfortunately this being America, they are.

And thanks again for the push about scrapping the new vehicle. Between you and all of my friends trying to convince me to be rational and keep my 32k mile car maybe I will get the hint. Though we all know purchasing a new car is not about being rational.

Re: Next move .... if any

Anonymous — Tue, 24 May 2011 14:39:32 GMT

32k? I'm constantly rationalizing keeping mine at 125k. I've decided I'll get a new-to-me car around 200k or when I need something major. Oh, or when I qualify for the subsidized lease at my job at a car manufacturer...who am I kidding, if I waited until then, my car would have 300k on it...

Re: Next move .... if any

Anonymous — Tue, 24 May 2011 15:07:58 GMT

@Anonymous wrote:
32k? I'm constantly rationalizing keeping mine at 125k. I've decided I'll get a new-to-me car around 200k or when I need something major. Oh, or when I qualify for the subsidized lease at my job at a car manufacturer...who am I kidding, if I waited until then, my car would have 300k on it...

Yeah, its definitely not the reliability of the car that makes me want a new one.

Debate running through my head...

Side One: I want to purchase a home in around 3 or 4 years. If I keep my current vehicle I will surely be really wanting a new one around that time. That would mean signing up for a new SUV payment and a mortgage right around the same time. Not a good situation. Though I would be able to save quite a bit of money in the mean time not having a car payment.

Side Two: If I purchase my new SUV now ( end of the year ) I can hopefully have it paid off in time to purchase a home in 3 or 4 years. Hopefully I am happy enough with my SUV that I could drive it until the wheels fall off saving me a car payment for a while. The downside is I would be continuing to make car payments for the next 3 to 4 years therefore saving up less for a deposit on a home. Plus SUV's are cool and if you give me enough time I am sure I could think of atleast 1 reason why I need one.

Anyway back to my original topic.

I intend to close both my CreditOne Bank card and my Orchard Bank card. I will keep both Cap1's and Walmart. I then want to get a card from a top tier bank that has high probability of CLI's if that is at all possible.

My EQ score is exactly 700 with an 8 year old BK. Any recommendations on a card to apply for anyone?

Again, sorry for the long winded rambling.

Re: Next move .... if any

Anonymous — Tue, 24 May 2011 15:23:28 GMT

Upgrading to an SUV will more then likely cost you more on a monthly basis and could possibly cost you more in fuel on a weekly basis. Paying off your current vehicle and saving for the house down payment would be the way to go imo. Also depending on how far you drive each year your current car could still be under 100k miles in 3-4 years.

Closing the Credit one and the Orchard card is a good idea but make sure you close it with a $0 balance and then check it often because some of the rebuilder cards also like to charge monthly fee's and all kinds of other stuff so you could end up oweing them money even after you closed the account. I dont know if Orchard or Credit one charge the extra fee's but i know First Premier does.

You also may be able to call Capital One and have one of your cards changed to something better if they will allow it. You could also try to convince them that you've closed two cards to focus more of your spending habits on there cards and thus would like a CLI.