topic Re: What would you do? in Credit Cards

What would you do?

Booner72 — Sat, 14 Jan 2012 16:53:39 GMT

Right after we closed on the house my CU gave us a joint VISA w/ a LOUSY 300 dollar limit and said after 6 months we can ask for more. She also said to get a limit that matched my gross monthly, I had to get to 659 (EQ). I'm currently sitting at 633 5.0 Beacon EQ, which they use.

My new CU where I got the car loan offered me a 1000.00 VISA and in six months can renegotiate. The EQ score they got was 647, and that day I had a SW alert at 633, so I know for sure it's not the beacon 5.0, and of course the CU lady has no idea what scoring model is used.

So the 300 dollar limit has aged, the new one would ding AAoA and amount of new credit. I never did get a hard inquiry from "New CU" so the inquiry "hit" doesn't play into this scenario.

So, keep the old, go on w/ the new higher limit? What would you do and why, thanks in advance.

(While I want the 1000 dollar limit bc it's a "big girl-ish" and not so humiliating as 300, my overall goal is to get my scores as high as they can go.)

Re: What would you do?

LS2982 — Sat, 14 Jan 2012 16:56:04 GMT

@Booner72 wrote:
Right after we closed on the house my CU gave us a joint VISA w/ a LOUSY 300 dollar limit and said after 6 months we can ask for more. She also said to get a limit that matched my gross monthly, I had to get to 659 (EQ). I'm currently sitting at 633 5.0 Beacon EQ, which they use.

My new CU where I got the car loan offered me a 1000.00 VISA and in six months can renegotiate. The EQ score they got was 647, and that day I had a SW alert at 633, so I know for sure it's not the beacon 5.0, and of course the CU lady has no idea what scoring model is used.

So the 300 dollar limit has aged, the new one would ding AAoA and amount of new credit. I never did get a hard inquiry from "New CU" so the inquiry "hit" doesn't play into this scenario.

So, keep the old, go on w/ the new higher limit? What would you do and why, thanks in advance.

(While I want the 1000 dollar limit bc it's a "big girl-ish" and not so humiliating as 300, my overall goal is to get my scores as high as they can go.)

I would stick with the 300 card and get some age with it, as your scores improve that card will grow.

Re: What would you do?

Anonymous — Sat, 14 Jan 2012 17:25:34 GMT

Keep your eye on the prize! If the $300 card helps your score more, take it. You know with time it will increase. Good luck, my friend!

Re: What would you do?

LS2982 — Sat, 14 Jan 2012 17:26:45 GMT

@Anonymous wrote:
Keep your eye on the prize! If the $300 card helps your score more, take it. You know with time it will increase. Good luck, my friend!

Re: What would you do?

CS800 — Sat, 14 Jan 2012 17:29:08 GMT

@LS2982 wrote:
@Booner72 wrote:
Right after we closed on the house my CU gave us a joint VISA w/ a LOUSY 300 dollar limit and said after 6 months we can ask for more. She also said to get a limit that matched my gross monthly, I had to get to 659 (EQ). I'm currently sitting at 633 5.0 Beacon EQ, which they use.

My new CU where I got the car loan offered me a 1000.00 VISA and in six months can renegotiate. The EQ score they got was 647, and that day I had a SW alert at 633, so I know for sure it's not the beacon 5.0, and of course the CU lady has no idea what scoring model is used.

So the 300 dollar limit has aged, the new one would ding AAoA and amount of new credit. I never did get a hard inquiry from "New CU" so the inquiry "hit" doesn't play into this scenario.

So, keep the old, go on w/ the new higher limit? What would you do and why, thanks in advance.

(While I want the 1000 dollar limit bc it's a "big girl-ish" and not so humiliating as 300, my overall goal is to get my scores as high as they can go.)
I would stick with the 300 card and get some age with it, as your scores improve that card will grow.

+1 . Age ...age ..

Re: What would you do?

frogfan12 — Sat, 14 Jan 2012 19:20:23 GMT

Keep the $300 card. As your scores go up, so will your CL. One of my first CCs had a limit of $300 and now it is $4K.

Re: What would you do?

namvet — Sat, 14 Jan 2012 19:26:07 GMT

@frogfan12 wrote:
Keep the $300 card. As your scores go up, so will your CL. One of my first CCs had a limit of $300 and now it is $4K.

+1 Nothing to gain by closing the card.

Re: What would you do?

Creditaddict — Sat, 14 Jan 2012 22:05:31 GMT

Kind of shocked by all the responses but okay that is the point, many different views!

Is this $300 CU card the only credit you have other then the Mortgage and Car?

I would take the $1k in a second and still keep the $300 also, I really don't believe you will notice much in a negative impact of credit score, I would actually think a gain based on util going down.... Furthermore if you do see small dip that should wear off probably in less then 6 months which is when both would be elegible to get increases!

I also say go with the 1k because they seem to be more leanant on lending which means you are probably going to see larger CLI in the future then the CU that only gave you $300 now.

Re: What would you do?

laboi_22 — Sat, 14 Jan 2012 22:09:31 GMT

@Booner72 wrote:
Right after we closed on the house my CU gave us a joint VISA w/ a LOUSY 300 dollar limit and said after 6 months we can ask for more. She also said to get a limit that matched my gross monthly, I had to get to 659 (EQ). I'm currently sitting at 633 5.0 Beacon EQ, which they use.

My new CU where I got the car loan offered me a 1000.00 VISA and in six months can renegotiate. The EQ score they got was 647, and that day I had a SW alert at 633, so I know for sure it's not the beacon 5.0, and of course the CU lady has no idea what scoring model is used.

So the 300 dollar limit has aged, the new one would ding AAoA and amount of new credit. I never did get a hard inquiry from "New CU" so the inquiry "hit" doesn't play into this scenario.

So, keep the old, go on w/ the new higher limit? What would you do and why, thanks in advance.

(While I want the 1000 dollar limit bc it's a "big girl-ish" and not so humiliating as 300, my overall goal is to get my scores as high as they can go.)

I was in the exact same position as you. I had a credit score of 649 when I purchased my home through the FHA program. I had no credit whatsoever. No credit cards, no loans, etc. My first thought, after I closed on my home, was to open a credit card. I finally deserved one. So I applied with BofA since I have my home loan through them. To my surprise I was declined. My thought process was if I can get approved for a 100,000+ home loan, why couldn't I get a credit card with even a small limit. WELCOME TO THE WORLD OF CREDIT CARDS.

I waited an entire year before applying for an Orchard bank because no one else would approve me. I had not checked with a CU as I was not aware of this forum yet. I received a $300 CL. I began using the card with all I had and after a year before I had to pay the AF again, I dropped them. I was then approved for the cards listed below. It just takes time. Let accounts age and let hard inquiries fall off. Once that happens, you will enter the prime market!! Good luck!!

Re: What would you do?

Booner72 — Sun, 15 Jan 2012 00:30:18 GMT

@Creditaddict wrote:
Kind of shocked by all the responses but okay that is the point, many different views!

Is this $300 CU card the only credit you have other then the Mortgage and Car?

I would take the $1k in a second and still keep the $300 also, I really don't believe you will notice much in a negative impact of credit score, I would actually think a gain based on util going down.... Furthermore if you do see small dip that should wear off probably in less then 6 months which is when both would be elegible to get increases!

I also say go with the 1k because they seem to be more leanant on lending which means you are probably going to see larger CLI in the future then the CU that only gave you $300 now.

I am so happy to have so many responses. I knew this would be the board to ask this question. And I welcome any further opinions cuz I still don't know.

No, it's not my only. I have Carecredit w/ a 2500 limit, JCP 2000 limit *or these could be vise versa ---- PLOC at 200 for overdraft protection (gggrrrr - too small and embarrassing) and Walmart w/ 800 limit (rose from 400 in 2 months w/o even asking). I had a FP but closed that cussword.

So it is my only bankcard credit card and I tend to agree that the 1000.00 might be worth the loss in AAoA. But I signed papers for it last Friday, and came home w/ "buyer's remorse" which is why I rethought it - then she screwed up the loan papers so I have to go resign.

The deal is I have to close my 300 CU Visa bc they are worried about all my new credit. (House, car, truck refi, walmart, 300 Visa, and 200 PLOC are all in the last 2-5 months).

Re: What would you do?

Anonymous — Sun, 15 Jan 2012 00:46:03 GMT

This story keeps changing.

Are yiou saying. The new CU which has your car loan wants you to close the $300 card with the other CU which has your mortgage, in order to get a new CC with $1K .limit?

Re: What would you do?

Anonymous — Sun, 15 Jan 2012 00:50:57 GMT

I'd probably stick with the $300 card. Rebuilding takes time.

Re: What would you do?

Booner72 — Sun, 15 Jan 2012 00:59:27 GMT

@Anonymous wrote:
This story keeps changing.

Are yiou saying. The new CU which has your car loan wants you to close the $300 card with the other CU which has your mortgage, in order to get a new CC with $1K .limit?

Well I'm certainly not trying to lie about anything so if the story is changing it's because I'm not explaining things correctly.

The New CU that has my car loan wants me to close the 300 card with the other CU that I have been with since I was 16. The old CU has the truck refi, my checking, PLOC, etc.
So yes, New CU wants me to close Old CU 300 Visa to get the 1000 Visa.

Re: What would you do?

Booner72 — Sun, 15 Jan 2012 01:01:05 GMT

@Anonymous wrote:
I'd probably stick with the $300 card. Rebuilding takes time.

why? (if you don't mind me asking?)

Re: What would you do?

Anonymous — Sun, 15 Jan 2012 01:02:00 GMT

id do it myself

Re: What would you do?

Anonymous — Sun, 15 Jan 2012 01:32:52 GMT

Booner, if you are only allowed to have one new cc, take the one with the higher limit -- IF its guaranteed for sure that you're going to get it. IMO, that's the better choice. You've come too far to settle for $300 from a CU you've been with since you were 16 years old -- they ought to be ashamed of themselves!

Re: What would you do?

Anonymous — Sun, 15 Jan 2012 01:39:31 GMT

Booner, Quote isn't working for me anymore, LOL! Also, it won't let me make paragraphs so forgive how this might read. Over the long term, I'd still value a good relationship with a credit union. Especially considering they did try working with you. Also, I get what they're saying about a lot of new accounts but would feel a little worried about someone demanding a $300 CL card be closed before offering one with $1K. My situation is different, though. Attempting gardening for a year, can't get a mortgage due to high DTI, and already have $39K in available credit so it's easier to say no. When in rebuilding mode I really only got 3 cards over a 4 year period. Excluding being rejected by PenFed 3 times, and the obligatory 3 HP for mortgage, I only have 4 HPs. I was really pretty conservative.

Re: What would you do?

Booner72 — Sun, 15 Jan 2012 01:45:39 GMT

@Anonymous wrote:
Booner, if you are only allowed to have one new cc, take the one with the higher limit -- IF its guaranteed for sure that you're going to get it. IMO, that's the better choice. You've come too far to settle for $300 from a CU you've been with since you were 16 years old -- they ought to be ashamed of themselves!

Thanks, discern - yes, it is guaranteed for sure. I just have to go in and sign the forms again. i was already approved.

Drkaje - that's what I feel, too, kinda guilty for going behind OLD CU's Back.

Re: What would you do?

Anonymous — Sun, 15 Jan 2012 02:02:17 GMT

This is an interesting question.

If you have a strong preference for doing business with 1 CU over the other, I would go with the preferred CU.

If you want to develop a good relationship with both CU, I would wait and reapply in 6 months with the new CU. My guess is you could get the card without restrictions later.

Re: What would you do?

Creditaddict — Sun, 15 Jan 2012 02:32:21 GMT

I would not close a credit card from another CU to get a credit card with another cu... are they just trying to be spite full, out of all the cards you have with much better limits why would they care about this tiny $300 limit card.