topic Re: Do I need more credit, part duex? in Rebuilding Your Credit

Do I need more credit, part duex?

ferferhess — Mon, 26 May 2008 16:57:10 GMT

I posted a question asking if I needed more credit yesterday. After all the responses, which I greatly appreciate by the way, I guess I was asking wrong. What I really want to know is....I have a lot of subprime credit, should I get something like a BoA 99/500 that after a year of good pay history will graduate to a prime card with better cls? Or do I have too many cards....?

Open CCA:
Direct Rewards Discover-$900 limit-opened 05/08
HSBC/Best Buy(not MC)-$500 limit-opened 12/07
Cap1-$500 limit- opened 01/07
OB Visa-$300 limit- opened 01/07 (got $ 100 cli yesterday-$400, boo hoo!)
OB MC-$300 limit- opened 01/07 (got $ 500 cli yesterday-now $800, yeah!)
*all are at 5% utility or less (but not reported to CRA yet)
*trying to combine the 2 OB CC's

Closed CCA:
AmEx- $1100-AU for 2mo in 11/01-12/01-closed PIF
First Premier-$300 limit- opened 11/05-closed 06/06 PIF

Student Loan:
Wells Fargo SL-$5000- opened 09/04

Installment Account:
Star Furniture-$1500-opened 02/05-closed 02/06, PIF

Auto Loans:
Cap1 Auto Fin-opened 10/07
HSBC Auto Fin-opened03/05
*HSBC will be paid this year

Re: Do I need more credit, part duex?

llecs — Mon, 26 May 2008 17:23:11 GMT

The answer depends on your goal. If your goal is use credit to get a home or car in the near future (1-2 yrs), then I'd waive off new credit.

If your goal is to get as close as possible to 850, then your amount of credit is OK. I saw someone post with an 820 or so score with just $750 or so in total CLs.

If your goal is to get more cards, then go for it. However, if those cards are new, let them report first and then app after a few months. If they haven't reported yet, expect a large temporary score drop.

Re: Do I need more credit, part duex?

Anonymous — Mon, 26 May 2008 18:34:47 GMT

Unless you are going for a large purchase (auto,mortg.) I would let the CCs age as age is very important to FICO scores.

all are at 5% utility or less (but not reported to CRA yet)
*trying to combine the 2 OB CC's

I would not combine UNLESS there is a yearly fee for both. FICO likes to see under 10% UTIL on all combined CC UTIL BUT it also likes to see some CC with Bal $0

I would wait until your scores are over 650 and then apply for better CCs.

Don't rush it!

Re: Do I need more credit, part duex?

ferferhess — Mon, 26 May 2008 22:20:57 GMT

Thanks guys! I'll def be taking your advice as I"m planning on a mortgage next year. My signature says it all!!!