topic Is this a good Idea???? in General Credit Topics

Is this a good Idea????

lost2007 — Sat, 14 Jul 2007 23:13:53 GMT

Here is the plan/idea.... I want to attain some new TL because my cards are crap!!! I call all my credit card companied and asked for CLI and to lower my APR and they said no, and to try back in 3 to 9 months. Applied Card Bank said that I was late back in Feb, but it's not on any of my CR (they said it's on their systems thats why they didnt give me and increase). Orchard Bank said that they couldn't give me an increase or lower APR for what ever reason, I totally forgot for at least 6 months. Macy's said to call back in 3 months and didn't give a reason... And 1st Premier wanted to do a hard INQ, so I didn't bother. Now my wuestion is I want to pay down all my TL to 10% UTL, and see if I can get better TL when the better UTL adjusts to my Fico scores. And then after dump the Sum prime cards, that have under a years worth of history on them.... Any comments.

Re: Is this a good Idea????

sl — Sat, 14 Jul 2007 23:16:59 GMT

What are you fico scores and how many baddies on your report?

Re: Is this a good Idea????

Anonymous — Sat, 14 Jul 2007 23:17:25 GMT

As far as First Premier - try doing it online. I had this card as a starter card, I requested a CLI 3 times via their website and it was always a soft inq.

Re: Is this a good Idea????

sl — Sat, 14 Jul 2007 23:19:19 GMT

With FP, do you have to pay a fee to ask for a CL increase? I know one card you do and I think it is this one as there is a fee for everything on this card.

Re: Is this a good Idea????

Anonymous — Sat, 14 Jul 2007 23:21:59 GMT

@sl wrote:
With FP, do you have to pay a fee to ask for a CL increase? I know one card you do and I think it is this one as there is a fee for everything on this card.

I think there is a 25$ fee if they do increase your limit - It will advise you on the page if there is a fee attached with your account. You can always call them after and request them to remove it. It seems after you get a CLI - they are more "customer friendly" - at least with me they were. I called prior to have the fees removed - they simply said no - tried 3 times. I did a CLI online & after that, they were seemingly nicer & removed the fees

Re: Is this a good Idea????

Anonymous — Sat, 14 Jul 2007 23:30:22 GMT

@lost2007 wrote:
Here is the plan/idea.... I want to attain some new TL because my cards are crap!!! I call all my credit card companied and asked for CLI and to lower my APR and they said no, and to try back in 3 to 9 months. Applied Card Bank said that I was late back in Feb, but it's not on any of my CR (they said it's on their systems thats why they didnt give me and increase). Orchard Bank said that they couldn't give me an increase or lower APR for what ever reason, I totally forgot for at least 6 months. Macy's said to call back in 3 months and didn't give a reason... And 1st Premier wanted to do a hard INQ, so I didn't bother. Now my wuestion is I want to pay down all my TL to 10% UTL, and see if I can get better TL when the better UTL adjusts to my Fico scores. And then after dump the Sum prime cards, that have under a years worth of history on them.... Any comments.

First off, you have to have realistic expectations. If your FICOs are below 620 or so, you've got collections or charge-offs opened in the past two years, or a BK in the past five years, getting CLIs is going to be an uphill battle. Not an impossible battle, mind you, but an uphill fight. So you've got to have a long-term, long-haul mentality. You need to have at least three positive TLs that update every month.

Second, manage your cards. Keep utilization as low as possible, but above zero. After you've accumulated six months of on-time history with a card issuer, ask for a CLI. If you credit fits the profile above, don't be surprised if you're turned down. Try again at the nine or ten month mark. If you get denied, demand a manual review (known as "reconsideration). You probably can succeed at this point in time. If not, keep trying every three months. Keep managing your cards, keep on keeping on. This is a patience game. But as your FICO rises, you'll find yourself in a progressively better position.

Re: Is this a good Idea????

lost2007 — Sat, 14 Jul 2007 23:52:29 GMT

My scores are EX 617 EQ 574 TU 551 I have about 3 baddies. A BK that has been discharged since Ma 2005, I recently removed alot of baddies post the BK since I found out about the credit forums and being more educated. I just want to know if I should get rid of these cards if they wont help me since they have short histories and will I be able to get new one's with what I have in plan??? Thanks again all

Re: Is this a good Idea????

MercyMe — Sun, 15 Jul 2007 00:40:01 GMT

Time was when I shared your way of thinking -- get rid of those darned sub prime cards! But truth be told, they've been pretty good to me and for me, as far as helping to maintain the average age of credit, helping me to off set baddies with goodies, and giving potential creditors a reference point to work with. I'm not overly fond of my First Premier, for all of the fees, but after three years, they lowered my interest to 9.9%, have offered me multiple cards -- though they only increased the initial $200-250 credit limit twice and to no more than $400, and they continue to add good history to my credit files, and that's worth the fees to me. Potential creditors don't care if it's First Premier or BOA. All they want to know is how long have I had this credit, have I paid on time, and how much of my limit do I owe? 1-9% across the board is best -- I know, be your cards prime or sub prime. My score shot up more than 40 points when I paid down my balances to around 13%, from 70%. So, IMO, pay them down, but don't shut them down, 'kay? And once your scores are up, seek new credit and CLI. You'll have better luck -- guaranteed! And for Pete's sake, pay the late Applied Card, if you haven't already.

Re: Is this a good Idea????

Anonymous — Sun, 15 Jul 2007 01:12:36 GMT

With those scores, and the Geiger counters still chattering from the BK fallout, you're probably not going to be able to do much better. Your focus right now shouldn't be on improving FICO so much as in establishing positive TLs so that toward the end of next year, when the BK fallout begins to die down, FICO takes into account your positive history for the past year and a half. At that time, your scores will begin to rise and you'll become eligible for a better deal.

Re: Is this a good Idea????

lost2007 — Sun, 15 Jul 2007 01:21:14 GMT

Ok ppl I think I got it, just wade it out and wait for better things TL offers to come. I am just so impatient, I guess this is what I have to do to pay the piper...

Re: Is this a good Idea????

Anonymous — Sun, 15 Jul 2007 01:53:44 GMT

Don't whatever you do close your accounts regardless of whether they give you CLI or lower interest rates. Just don't use them much if you are unhappy with them. Charge a tank of gas or a few groceries on each one and pay almost the balance off each month, leaving a balance of about 7% of your credit limit. Let those suckers keep building you a longer credit history.

I made that mistake with one of my Orchard cc's, they wouldn't lower my interest rate after I had the card for like three years, never a late payment....so I told them that I would have to close the account. Unfortunately, after joining into the forums and learning so much here, I realise I made a big mistake. Had a very good TL history building, and I closed it. We live and we learn from our mistakes. So don't you go making the same mistakes many of us have done...learn from our mistakes as much as you can.

Re: Is this a good Idea????

Anonymous — Sun, 15 Jul 2007 02:00:11 GMT

Touche...if you're using CCs properly, you're not maintaining a high enough balance for interest rates to matter. 7% or 27% of a $12.23 balance--who cares?

Re: Is this a good Idea????

lost2007 — Sun, 15 Jul 2007 02:02:54 GMT

I've been hearing alot of numbers, all over the board from 1% to 30%. How much of a percentage should I keep on my cards?

Re: Is this a good Idea????

Anonymous — Sun, 15 Jul 2007 02:15:42 GMT

TheNewWorldMan wrote:
Touche...if you're using CCs properly, you're not maintaining a high enough balance for interest rates to matter. 7% or 27% of a $12.23 balance--who cares?

Good point NWM. I didn't look at it that way.

Just make sure you only charge what you can almost pay off each month. According to all the forums and info that I have read, the utilization should be 1-9% of your credit limit. I have about 30% Utli on my cc's currently and it has not lowered my Fico score.

If your credit limit is $300.00, 9% utli would be $27.00 per month. But of course don't owe the same amount each month. Change it around each month with a different remaining balance due.

Re: Is this a good Idea????

Anonymous — Sun, 15 Jul 2007 02:28:03 GMT

good post cbjn, infact i was about to post the samething and then I reas your post. I am doing that for few months now. I have 3 cards with 300, 400 and 500 dollars limit. One I have set it up for cable , one for my phone and one for my internet payment. I really dont need to use the cards but I use it to build the credit so I dont care about apr because I pay full each month. Credit card companies report the balance on your statement so you dont need to carry the balance to build a credit.

Re: Is this a good Idea????

Anonymous — Sun, 15 Jul 2007 03:35:31 GMT

lost2007 wrote:
I've been hearing alot of numbers, all over the board from 1% to 30%. How much of a percentage should I keep on my cards?

For maximum FICO points 1-9%