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Use existing cards or apply for new credit

sangho550
New Visitor

Use existing cards or apply for new credit

Hello all, 

 

This is my first post so I appreciate any and all feedback here. I have spent several years rebuilding my credit and as it stands, my mid is somewhere beteween 730-750. I opened several cards NFCU - 24k secured card(Initially they told me I could secure it and 'convert' it to unsecured, but later they said I had to reapply) Wells Fargo - $10k(was secured then it converted to unsecured and I received my deposit back), Chase $26,700 (this is my daily) and most recently a Discover $10k and US Bank $6k (these two were opened in the last several months). Outside of that, a couple auto loans and a mortgage puts me with decent mixed credit usage. 

 

I had zero balances across for quite some time, but due to the pandemic - I was forced to use some of these cards and now the balances have gone way up. My chase is maxed out now and my NFCU is half way there. I just started using my Discover to mix it up as well. My question is - should I look to open up new accounts with good balance transfer promos and 0% purchase period promos or would I have better luck asking for help from my current card companies? My WF still has no balance, but its a 18.99% card and I would imagine it'd be better for me to apply/use a new one with a promo period than the one I've had for years with a zero balance? 

 

Realistically - I would hope to be able to pay the debt back around 12-18 months, but would like to be smart about how to utilize these cards/apply for new ones until I am in a better financial situation. Thank you all in advance. 

Message 1 of 15
14 REPLIES 14
FinStar
Moderator

Re: Use existing cards or apply for new credit


@sangho550 wrote:

Hello all, 

 

This is my first post so I appreciate any and all feedback here. I have spent several years rebuilding my credit and as it stands, my mid is somewhere beteween 730-750. I opened several cards NFCU - 24k secured card(Initially they told me I could secure it and 'convert' it to unsecured, but later they said I had to reapply) Wells Fargo - $10k(was secured then it converted to unsecured and I received my deposit back), Chase $26,700 (this is my daily) and most recently a Discover $10k and US Bank $6k (these two were opened in the last several months). Outside of that, a couple auto loans and a mortgage puts me with decent mixed credit usage. 

 

I had zero balances across for quite some time, but due to the pandemic - I was forced to use some of these cards and now the balances have gone way up. My chase is maxed out now and my NFCU is half way there. I just started using my Discover to mix it up as well. My question is - should I look to open up new accounts with good balance transfer promos and 0% purchase period promos or would I have better luck asking for help from my current card companies? My WF still has no balance, but its a 18.99% card and I would imagine it'd be better for me to apply/use a new one with a promo period than the one I've had for years with a zero balance? 

 

Realistically - I would hope to be able to pay the debt back around 12-18 months, but would like to be smart about how to utilize these cards/apply for new ones until I am in a better financial situation. Thank you all in advance. 


Hi @sangho550 - welcome to the forums.

 

Hmmm. So, is the NFCU card secured or unsecured? Just to be clear, is the limit $24,000? If so, are you saying the balance is around $12K?  How much is the balance on Discover?

 

Since your Discover is fairly new, you won't be able to ask for a lower APR yet. Chase will not lower APRs and not sure if NFCU will lower it (depending on how long you've had it).

 

The issue you're likely going to run into, most issuers are not going to approve new cards given your current utilization and the fact that you've recently obtained some new accounts. If approved, the limits might be fairly lower than what you might expect.

 

If you can list your current balances, APRs, limits, the payments you're making, etc., (for all cards), perhaps the community can provide a strategy to get those balances more manageable.

Message 2 of 15
sangho550
New Visitor

Re: Use existing cards or apply for new credit


@FinStar wrote:

@sangho550 wrote:

Hello all, 

 

This is my first post so I appreciate any and all feedback here. I have spent several years rebuilding my credit and as it stands, my mid is somewhere beteween 730-750. I opened several cards NFCU - 24k secured card(Initially they told me I could secure it and 'convert' it to unsecured, but later they said I had to reapply) Wells Fargo - $10k(was secured then it converted to unsecured and I received my deposit back), Chase $26,700 (this is my daily) and most recently a Discover $10k and US Bank $6k (these two were opened in the last several months). Outside of that, a couple auto loans and a mortgage puts me with decent mixed credit usage. 

 

I had zero balances across for quite some time, but due to the pandemic - I was forced to use some of these cards and now the balances have gone way up. My chase is maxed out now and my NFCU is half way there. I just started using my Discover to mix it up as well. My question is - should I look to open up new accounts with good balance transfer promos and 0% purchase period promos or would I have better luck asking for help from my current card companies? My WF still has no balance, but its a 18.99% card and I would imagine it'd be better for me to apply/use a new one with a promo period than the one I've had for years with a zero balance? 

 

Realistically - I would hope to be able to pay the debt back around 12-18 months, but would like to be smart about how to utilize these cards/apply for new ones until I am in a better financial situation. Thank you all in advance. 


Hi @sangho550 - welcome to the forums.

 

Hmmm. So, is the NFCU card secured or unsecured? Just to be clear, is the limit $24,000? If so, are you saying the balance is around $12K?  How much is the balance on Discover?

 

Since your Discover is fairly new, you won't be able to ask for a lower APR yet. Chase will not lower APRs and not sure if NFCU will lower it (depending on how long you've had it).

 

The issue you're likely going to run into, most issuers are not going to approve new cards given your current utilization and the fact that you've recently obtained some new accounts. If approved, the limits might be fairly lower than what you might expect.

 

If you can list your current balances, APRs, limits, the payments you're making, etc., (for all cards), perhaps the community can provide a strategy to get those balances more manageable.


Yes - the NFCU is secured. I have not asked to lower the apr, but I have had this card for quite some time now. The balance is ~$15k and Discover ~$7k on a 10k limit. I am thinking to close the NFCU so they will give me my 24k back and I can use it to pay off both these cards and then apply for a 0% promo card? At that point I would only have my Chase ~$27k bal and util % would be 50% or so. The Discover I opened around 3 months and US I recently opened. 

 

Chase - 19.99, NFCU - 13.99 , Disc 0% until april '22 then 20.99, us bank 0% for 20 months(bal xfer only) then 20.99, wells 18.99 currently 0 balance. 

 

Thank you. 

Message 3 of 15
Ilinferno
Frequent Contributor

Re: Use existing cards or apply for new credit

@sangho550 

Sorry to veer off topic but I thought NFCU secured capped at 5k? How'd you swing the 24? Just call and ask to add it to the limit?

Message 4 of 15
sangho550
New Visitor

Re: Use existing cards or apply for new credit


@Ilinferno wrote:

@sangho550 

Sorry to veer off topic but I thought NFCU secured capped at 5k? How'd you swing the 24? Just call and ask to add it to the limit?


I'm not sure tbh? It was quite some time ago. I just remember applying and that's the amount that was provided. It may have been because I had a large balance in a NFCU checking account when I applied? 

Message 5 of 15
Ilinferno
Frequent Contributor

Re: Use existing cards or apply for new credit

@sangho550 

Interesting. Appreciate the info!

Message 6 of 15
CreditInspired
Super Contributor

Re: Use existing cards or apply for new credit


@sangho550 wrote:

@FinStar wrote:

@sangho550 wrote:

Hello all, 

 

This is my first post so I appreciate any and all feedback here. I have spent several years rebuilding my credit and as it stands, my mid is somewhere beteween 730-750. I opened several cards NFCU - 24k secured card(Initially they told me I could secure it and 'convert' it to unsecured, but later they said I had to reapply) Wells Fargo - $10k(was secured then it converted to unsecured and I received my deposit back), Chase $26,700 (this is my daily) and most recently a Discover $10k and US Bank $6k (these two were opened in the last several months). Outside of that, a couple auto loans and a mortgage puts me with decent mixed credit usage. 

 

I had zero balances across for quite some time, but due to the pandemic - I was forced to use some of these cards and now the balances have gone way up. My chase is maxed out now and my NFCU is half way there. I just started using my Discover to mix it up as well. My question is - should I look to open up new accounts with good balance transfer promos and 0% purchase period promos or would I have better luck asking for help from my current card companies? My WF still has no balance, but its a 18.99% card and I would imagine it'd be better for me to apply/use a new one with a promo period than the one I've had for years with a zero balance? 

 

Realistically - I would hope to be able to pay the debt back around 12-18 months, but would like to be smart about how to utilize these cards/apply for new ones until I am in a better financial situation. Thank you all in advance. 


Hi @sangho550 - welcome to the forums.

 

Hmmm. So, is the NFCU card secured or unsecured? Just to be clear, is the limit $24,000? If so, are you saying the balance is around $12K?  How much is the balance on Discover?

 

Since your Discover is fairly new, you won't be able to ask for a lower APR yet. Chase will not lower APRs and not sure if NFCU will lower it (depending on how long you've had it).

 

The issue you're likely going to run into, most issuers are not going to approve new cards given your current utilization and the fact that you've recently obtained some new accounts. If approved, the limits might be fairly lower than what you might expect.

 

If you can list your current balances, APRs, limits, the payments you're making, etc., (for all cards), perhaps the community can provide a strategy to get those balances more manageable.


Yes - the NFCU is secured. I have not asked to lower the apr, but I have had this card for quite some time now. The balance is ~$15k and Discover ~$7k on a 10k limit. I am thinking to close the NFCU so they will give me my 24k back and I can use it to pay off both these cards and then apply for a 0% promo card? At that point I would only have my Chase ~$27k bal and util % would be 50% or so. The Discover I opened around 3 months and US I recently opened. 

 

Chase - 19.99, NFCU - 13.99 , Disc 0% until april '22 then 20.99, us bank 0% for 20 months(bal xfer only) then 20.99, wells 18.99 currently 0 balance. 

 

Thank you. 


I don't know this for a fact, but I believe if you close the NFCU, they will deduct the outstanding balance of $15K from the deposit--refunding $9K, not $24K. Please check with them before doing this card arbitrarily.

 

Also, if I were you, I would first ask for the account to be unsecured, which is a 50/50 chance of not happening but, it's best to know your options and you have nothing to lose by asking. 

Another major concern is that you're talking about seeking a 0% for purchases credit card. IMHO, at this juncture, you should drastically cut back on spending. Now is the time to get spending under control and to get out in front of the escalating debt to thwart Adverse Action from happening.

 

Also, NFCU has a great debt relief program if you qualify whereby they reduce the interest rate really low (6%) and setup a fixed monthly payment for one year. You cannot use your NFCU during that timeperiod but they don't make you close it; and if it's unsecured, you retain the balance. In your case, I would do everything I could to get it unsecured. 

I agree with Finstar. It's going to be difficult to get approved since you have maxed out cards; and if you do get approved, the CL would more than likely be small.

Again, I'm more concerned about AA, especially if you start applying for new credit--a red flag for sure. 

GL2 whatever you decide. 


|| AmX Cash Magnet $40.5K || NFCU CashRewards $30K || Discover IT $24.7K || Macys $20K || NFCU CLOC $15K || CitiCostco $12.7K || NFCU Platinum $12.5K || Apple Card $7K || BOA CashRewards $6K
Message 7 of 15
sangho550
New Visitor

Re: Use existing cards or apply for new credit


@CreditInspired wrote:

@sangho550 wrote:

@FinStar wrote:

@sangho550 wrote:

Hello all, 

 

This is my first post so I appreciate any and all feedback here. I have spent several years rebuilding my credit and as it stands, my mid is somewhere beteween 730-750. I opened several cards NFCU - 24k secured card(Initially they told me I could secure it and 'convert' it to unsecured, but later they said I had to reapply) Wells Fargo - $10k(was secured then it converted to unsecured and I received my deposit back), Chase $26,700 (this is my daily) and most recently a Discover $10k and US Bank $6k (these two were opened in the last several months). Outside of that, a couple auto loans and a mortgage puts me with decent mixed credit usage. 

 

I had zero balances across for quite some time, but due to the pandemic - I was forced to use some of these cards and now the balances have gone way up. My chase is maxed out now and my NFCU is half way there. I just started using my Discover to mix it up as well. My question is - should I look to open up new accounts with good balance transfer promos and 0% purchase period promos or would I have better luck asking for help from my current card companies? My WF still has no balance, but its a 18.99% card and I would imagine it'd be better for me to apply/use a new one with a promo period than the one I've had for years with a zero balance? 

 

Realistically - I would hope to be able to pay the debt back around 12-18 months, but would like to be smart about how to utilize these cards/apply for new ones until I am in a better financial situation. Thank you all in advance. 


Hi @sangho550 - welcome to the forums.

 

Hmmm. So, is the NFCU card secured or unsecured? Just to be clear, is the limit $24,000? If so, are you saying the balance is around $12K?  How much is the balance on Discover?

 

Since your Discover is fairly new, you won't be able to ask for a lower APR yet. Chase will not lower APRs and not sure if NFCU will lower it (depending on how long you've had it).

 

The issue you're likely going to run into, most issuers are not going to approve new cards given your current utilization and the fact that you've recently obtained some new accounts. If approved, the limits might be fairly lower than what you might expect.

 

If you can list your current balances, APRs, limits, the payments you're making, etc., (for all cards), perhaps the community can provide a strategy to get those balances more manageable.


Yes - the NFCU is secured. I have not asked to lower the apr, but I have had this card for quite some time now. The balance is ~$15k and Discover ~$7k on a 10k limit. I am thinking to close the NFCU so they will give me my 24k back and I can use it to pay off both these cards and then apply for a 0% promo card? At that point I would only have my Chase ~$27k bal and util % would be 50% or so. The Discover I opened around 3 months and US I recently opened. 

 

Chase - 19.99, NFCU - 13.99 , Disc 0% until april '22 then 20.99, us bank 0% for 20 months(bal xfer only) then 20.99, wells 18.99 currently 0 balance. 

 

Thank you. 


I don't know this for a fact, but I believe if you close the NFCU, they will deduct the outstanding balance of $15K from the deposit--refunding $9K, not $24K. Please check with them before doing this card arbitrarily.

 

Also, if I were you, I would first ask for the account to be unsecured, which is a 50/50 chance of not happening but, it's best to know your options and you have nothing to lose by asking. 

Another major concern is that you're talking about seeking a 0% for purchases credit card. IMHO, at this juncture, you should drastically cut back on spending. Now is the time to get spending under control and to get out in front of the escalating debt to thwart Adverse Action from happening.

 

Also, NFCU has a great debt relief program if you qualify whereby they reduce the interest rate really low (6%) and setup a fixed monthly payment for one year. You cannot use your NFCU during that timeperiod but they don't make you close it; and if it's unsecured, you retain the balance. In your case, I would do everything I could to get it unsecured. 

I agree with Finstar. It's going to be difficult to get approved since you have maxed out cards; and if you do get approved, the CL would more than likely be small.

Again, I'm more concerned about AA, especially if you start applying for new credit--a red flag for sure. 

GL2 whatever you decide. 


 

Yes - I was planning on having the 24k deducted and use that to pay off the ~15k balance + the Discover balance. That will just leave me with the Chase so I can use Discover $10k(bal xfer) 15 month promo, US Bank $6k(bal xfer) 20 month promo, and find a 3rd card - maybe NFCU for $10k to relieve the last part of the Chase balance for a promo similar to the ones above. 

 

I have already asked for the NFCU to be unsecured, but they told me I would just have to close it and reapply. It did not work the same was as my WF did where I started secured and they just made it unsecured and sent back my deposit. I've asked them several times on this. 

 

I may have spoke incorrectly - I am not looking for 0% on purchases - I apologize if that's what I stated. I believe I just lumped bal xfer and purchase promos as the same thing, but I am just looking to offload my chase bal for now. I was not working for quite some time so I had to use them, but I am able to start paying on them. I just need to move them to 0% for 12-18 months and I will be able to take care of them. 

 

Thank you again to all. 

 

 

Message 8 of 15
Sionkado
Regular Contributor

Re: Use existing cards or apply for new credit

Well that definitely sounds like a pickle to be in. 

If you decided the BT route was the only possible way, you could always look at the NFCU Platinum for a 12 month 0% transfer. The Citi Diamond Preffered and Simplicity offer great BT's. As others have said, getting the limit you need may be tough, so you'll have to gauge if the HP is worth it. The Citi prequalify site appears to be working again, so you could try that and see if there is anything. I've heard the NFCU prequal site is NOT very reliable. 

Good luck! 

Message 9 of 15
sangho550
New Visitor

Re: Use existing cards or apply for new credit

Would it be better for me to close the NFCU Secured Card - get my deposit back and pay down the Discover - then apply for the final BT card I need? At that point - my summary would look something like this - 

 

NFCU - Closed 

Chase - $26.7k maxed out

Discover - 0/10k 

US Bank - 0/6k 

WF - 0/10k 

 

so util % would be ~50% with 2 new cards in last few months. 

Message 10 of 15
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