topic Re: Help Me Figure Out A Plan in Credit Cards

Help Me Figure Out A Plan

firstladyd — Wed, 24 Oct 2012 08:24:52 GMT

I need some advice and suggestions please on what to do next. I have been reestablishing for the last 2 years. I have no baddies as they have all fallen off. I am trying to get my score over 750. I know right now I need to pay down two of my accounts as they are at 40% mark. This is what I've got going on currently Discvr More. $5500 / 00. 10/12 Cap1/RmStr. $3100 / $1300 04/11 Wbbnk/Fngrht. $1200 / $97. 02/11 Cap1/BestBuy. $500 / $385. 08/11 Comnty/LBrynt. $400 / $55. 02/11 Cap 1.securd $300 / $200. 07/10 TU 679. EQ 680. Fico The Best Buy and Room Store are 0% but the cap1 secured is not. I was thinking of paying off and closing it since they are so bad on cli AND since I just got my first prime card with discover. I appd for amex gold and barclays for average credit on the same day as the discover and was turned down. Im waiting on the letters to tell me why. On the discover I got a message to send in a utility bill which I did and then called the cs. My address is not the same on cr since I just moved 3 months ago. Bam approved Im going to recon amex and barclays as soon as I get letters. What should my next move be?? I would like a chase card and an amex but I don't want to get turned down. I now have 3 inquiries and don't want to rack those up either. I really would like another credit card that is not a store card but I don't know if im applying out of my league or what is a good one to apply for. Please advice and suggestions! ! Thank you in advance.

Re: Help Me Figure Out A Plan

firstladyd — Thu, 25 Oct 2012 00:33:54 GMT

bump

Re: Help Me Figure Out A Plan

Anonymous — Thu, 25 Oct 2012 00:37:27 GMT

Pay off, or down, the ones that are closest to their limit. Pay off all to a 0 balance except one, and leave less than 10% as a balance. So if you used your discover, leave a balance of less than $500..

Re: Help Me Figure Out A Plan

SnackTrader — Thu, 25 Oct 2012 01:43:51 GMT

My opinion would be to do what's best for your personal finances first. For example, you mentioned closing cards with annual fees. I would also focus on paying down balances, which will ironically help improve chances with any new apps too.

Gardening has proven very successful for a lot of people on this forum. The easiest way to improve scores for many has been to let accounts age, continue perfect payment history, and apply very strategically for new cards.

For example, your AAoA is somewhere north of 2 years, but can improve to over 3 years if you stop applying for new cards. You also likely have mutliple inquiries on each report, which lower scores some (approximately 5 points for each inquiry, although specifics aren't known).

In summary:

- Items hurting you: Utilization, AAoA, Inquiries

- Ways to fix it: Garden, pay down balances

- Next steps: App strategically sometime in late 2013 and I bet your scores will be at least over 700 (assuming continued perfect payment history). Also, enjoy your new Discover!

Sorry if this wasn't the answer you were looking for. But given that you have established positive payment history, I don't think FICO-wise you need any new cards.

Re: Help Me Figure Out A Plan

firstladyd — Thu, 25 Oct 2012 01:53:42 GMT

Wow! You sound like my Barclay's denial letter. Yeah I think you are right, garden and then next year try again with lots less utilization. Thank you for responding!

Re: Help Me Figure Out A Plan

webhopper — Thu, 25 Oct 2012 01:55:55 GMT

Chase freedom... balance transfer your balances

Re: Help Me Figure Out A Plan

SnackTrader — Thu, 25 Oct 2012 02:00:00 GMT

@firstladyd wrote:
Wow! You sound like my Barclay's denial letter. Yeah I think you are right, garden and then next year try again with lots less utilization. Thank you for responding!

HEHE! Well, I'm just trying to help you the best I know how, and it sounds like they want your business but you don't currently fit their profile for one reason or another.

I wish you luck with building credit. But honestly, it should go pretty smoothly given the huge limit on your Discover. You could charge a new living room to that card and still have enough left over to handle daily expenses.

Re: Help Me Figure Out A Plan

kimmiller112 — Thu, 25 Oct 2012 02:05:03 GMT

You need to pay down the balances. Some of your cards are over 50% utilization.

You don't have to wait for letters in the mail to see if you are approved/declined. The backdoor numbers for Amex and Barclays are stickied. If you are approved for Barclays, try to negotiate the starting CL. I was able to get more than they originally offered on their Apple card and on their US Air card earlier this year (I have since closed down the Apple card and rolled over the CL onto my US Air card).

I know you said no store cards, but you may want to consider a GE card. If you go with a Walmart card, you get the free TU score. GE is excellent with CLI's every four months (ask for double each time and if they don't like it, they will often negotiate). Two months ago, I went from $1000 to $2000 with my Walmart store card, from $200 to $1000 for my Belk store card and got approved for $2000 on my Paypal Extras MC. I will be calling again in December for all three cards.

Other than that, garden what you currently have.

Re: Help Me Figure Out A Plan

webhopper — Thu, 25 Oct 2012 02:19:37 GMT

Wal mart discover or Sam's club discover... both are good. But... OP really doesn't need either of those. If she shops at amazon; chase amazon is a very nice card. 3% on amazon; 2% on gas; restaurants; and drugstores; 1% everything else

Re: Help Me Figure Out A Plan

Anonymous — Thu, 25 Oct 2012 02:30:28 GMT

@webhopper wrote:
Chase freedom... balance transfer your balances

Chase slate is better for balance transfers

Re: Help Me Figure Out A Plan

TheConductor — Thu, 25 Oct 2012 15:33:29 GMT

You are definitely ready to just close that Cap1 secured card. Pay that first, close it, and use the security deposit to help pay other cards. It has served its purpose in your rebuild and you are moving on to bigger and better things.

After that, +1 to paying whatever gets you back close to zero debt the quickest. Target the high APRs first, but also try to get all accounts below 50% utilization relative to their respective limits and then work them down from there.

With a little bit of patient gardening, I expect your next app for AmEx Gold to be a winner.