topic Re: Went on App spree, need help with a decision in Credit Cards

Went on App spree, need help with a decision

ac921ol — Sun, 29 Sep 2013 21:33:52 GMT

I have a decision to make. I went on an app spree for four more cards, and was approved, I now want to cancel my credit1.

Cards I have
Credit1 $1100 B-$600
Cap1 $1800 B-$1600
Old Navy $500 B-$0
Chase SP $5000 (waiting arrival)
Chase freedom $1500 (waiting arrival)
Amex Delta (no idea, waiting for arrival)
Sallie Mae $3500 (waiting arrival)

I want to pay off the credit1 and close that bad boy, but it's my longest standing account at 8years my 2nd longest is cap1 and that's 5 years in October. Should I just pay and close it and not worry about it. I plan on asking for a higher balance on my chase freedom so I can do a balance transfer and not pay interest on the $1600 from my cap1, hopefully they say yes and then canceling my credit1 won't hurt/bother that much.

Is this a good plan?? I plan on buying a 2nd home in about a year will this have any influence on that?

Re: Went on App spree, need help with a decision

09Lexie — Sun, 29 Sep 2013 21:39:33 GMT

Asking for an increase on Freedom will result in an additional hp and unless something has changes since approval chances are slim. I understand why you'd want to pay of credit 1 but that Cap1 needs your attention.

Closed accounts may remain on your CR's for up to 10 yrs so no worries there, they will not factor into your util though.

Re: Went on App spree, need help with a decision

ac921ol — Sun, 29 Sep 2013 21:46:30 GMT

I find it odd I apply for the freedom they give me $1509 then I apply (30min later) for the CSP, and I got approved for 5k, you don't think it's possible to use that also as a CLI as well as using the BT amount.

Why focus on cap1? I can essentially pay $200 $200 on both accounts this week if I want.

Re: Went on App spree, need help with a decision

tryingagain62 — Sun, 29 Sep 2013 21:48:07 GMT

Does the closed account still factor in AAoA or is it no longer counted?

Re: Went on App spree, need help with a decision

ac921ol — Sun, 29 Sep 2013 21:54:41 GMT

It's still counted for 10 years. (From what I understand) it would only hurt my utility.

Re: Went on App spree, need help with a decision

09Lexie — Sun, 29 Sep 2013 21:57:32 GMT

Focus on your Cap 1 because it's maxed out. I don't know if I find it odd, that you received less on the first app. They are two different cc's which is why they will not use the same hp for apps or CLI's.

Re: Went on App spree, need help with a decision

Kenny — Sun, 29 Sep 2013 22:05:16 GMT

It is all counted. (Why not just pay them off and then cancel? unless the rate is atrocious.) I do know for a fact you can move some of the 5k from CSP as I just did this on my Slate card. I wouldn't do another HP with Chase it's often fruitless. What's the BT APR on Sallie Mae?

It is a myth that closing an account will hurt your score in aaoa immediately. It only affects it when it drops off your report which can be in about 10 years. It will however affect your debt to credit limit ratio (or utilization of credit line) so I would keep it open until you pay off the debt if you want to maximize your score.

It's not odd that they approved you for different amounts as that's the minimum for CSP.

Re: Went on App spree, need help with a decision

FinStar — Sun, 29 Sep 2013 22:19:04 GMT

@09Lexie wrote:
Focus on your Cap 1 because it's maxed out. I don't know if I find it odd, that you received less on the first app. They are two different cc's which is why they will not use the same hp for apps or CLI's.

Re: Went on App spree, need help with a decision

ac921ol — Sun, 29 Sep 2013 22:40:46 GMT

So what I'm getting is, don't call chase for a CLI on my freedom. I should focus on my cap1 one more so then my cred1 and just start paying them both off and once I'm done just cancel my cred1.

Re: Went on App spree, need help with a decision

09Lexie — Sun, 29 Sep 2013 22:44:48 GMT

Exactly

Re: Went on App spree, need help with a decision

FinStar — Sun, 29 Sep 2013 22:44:49 GMT

@ac921ol wrote:
So what I'm getting is, don't call chase for a CLI on my freedom. I should focus on my cap1 one more so then my cred1 and just start paying them both off and once I'm done just cancel my cred1.

Bingo!

Re: Went on App spree, need help with a decision

ac921ol — Sun, 29 Sep 2013 23:09:47 GMT

What about doing a BT of the cred1 and closing that account. I'd rather pay the 3% of the balance fee, and not pay the everyday interest charge and the monthly $9 fee for cred1 and it's 0% apr for 15 months on the freedom. Or stick to my first plan.

Re: Went on App spree, need help with a decision

09Lexie — Sun, 29 Sep 2013 23:26:47 GMT

You would need to do the math but tbh it would be best to pay it off from your own funds.

Edit: typo

Re: Went on App spree, need help with a decision

FinStar — Sun, 29 Sep 2013 23:23:43 GMT

@ac921ol wrote:
What about doing a BT of the cred1 and closing that account. I'd rather pay the 3% of the balance fee, and not pay the everyday interest charge and the monthly $9 fee for cred1 and it's 0% apr for 15 months on the freedom. Or stick to my first plan.

If you have the funds this week (as you mentioned in your prior post), funnel the amount to PIF the CreditOne and then close it. Whether you decide to BT CapitalOne to Freedom is up to you.

@ac921ol wrote:
I find it odd I apply for the freedom they give me $1509 then I apply (30min later) for the CSP, and I got approved for 5k, you don't think it's possible to use that also as a CLI as well as using the BT amount.

Why focus on cap1? I can essentially pay $200 $200 on both accounts this week if I want.

Re: Went on App spree, need help with a decision

FinStar — Sun, 29 Sep 2013 23:22:54 GMT

@09Lexie wrote:
You would need to do the bath but tbh it would be best to pay it off from your own funds.

I'm sure Lexie meant *math* Either case, I concur.

Re: Went on App spree, need help with a decision

09Lexie — Sun, 29 Sep 2013 23:26:25 GMT

Darn it! Yes *math*!

Re: Went on App spree, need help with a decision

ac921ol — Sun, 29 Sep 2013 23:32:56 GMT

Are you suggesting my own funds cause it looks bad doing a BT and closing? Or to teach me a lesson? If it looks bad then by all means, I'll pay it off myself.

Re: Went on App spree, need help with a decision

09Lexie — Sun, 29 Sep 2013 23:41:54 GMT

You indicated that you were going to pay $200x2 - I'm not sure what you mean by 'teach you a lesson' but it's always wise to pay off debt with your money than borrowed money. If it cannot be done then do a BT

Re: Went on App spree, need help with a decision

FinStar — Mon, 30 Sep 2013 00:32:38 GMT

@09Lexie wrote:
You indicated that you were going to pay $200x2 - I'm not sure what you mean by 'teach you a lesson' but it's always wise to pay off debt with your money than borrowed money. If it cannot be done then do a BT

OP - I'm perplexed...where does this thing about "teach you a lesson" come from? Lexie (and others) were simply providing the best guidance/advice considering your situation.

Ultimately, you can do whatever is in your comfort zone or based on your financial situation; however, if you are asking for advice, it seems to me the folks on this thread have provided it to you with their best and honest intentions.