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Has anyone done this upgrade? If so, how long did you hold the Optima card for.
My background:
Basically, I've never used credit cards as a tool before and just paid with my debit card for everything. I opened a Capital One account in college and like an idiot after a few months of using it just forgot that there was a balance and it went into collections. Similarly, my old Amex was paid on time and in full every month for over a year when they abruptly cancelled the card. This was most likely due to the financial crisis causing a credit crunch and my propensity to run up high utlizations on the card - I'd generally spend $4k per month on a $2k limit card (I'd pay the balance multiple times during the month). After the card was cancelled, I took a rather peurile stance and ignored the balance until finally paying it off once they started calling me incessently. So here we are now. I've finally taken a mature approach to credit and want to get my scores in the 800 range.
~ 650 Credit Scores across the board w/ 75% utilization and one collection that was just removed today due to inaccuracy (will be off reports by end of the month)
Average age of accounts is ~ 8 years
Previous CO w/ American Express Delta Gold in 2010 - Paid in Full (still showing on my CR - recently sent GW for removal)
Previous CO w/ Capital One in 2007 - Settled (still showing on my CR - recently sent GW for removal)
Income is ~$225,000
Open Accounts include:
Bank of America Platinum Plus - $1,000 CL (~ 70% Utilization - will pay this down to 5% this month)
GERB Care Credit - $1,000 CL (~40% Utilization - will pay this down to 0% this month)
American Express Optima - $500 CL (0% Utilization)
Student Loan A - $16,000
Student Loan B - $3,000
Total Revolving Utilization (current ~ 44 - 50%) (end of month = 2%)
My basic question is, if the GW letters fail, what do you think my credit score should improve to with the collection account falling off and my utilization going from 75% to 2%? And do you think with that hopefully increased credit score, I will have an adequate profile to apply for the Platinum Charge card from American Express.
The reason why I want the Platinum is that I travel and would be able to use the card a lot for work (~50k - 70k conservatively per year in reimbursable expenses), not to mention my employer will pay for the full $450 fee. So it definitely makes the most sense.
This site has definitely been helpful over the last few days - so thanks in advance to all.
Welcome to the forums!
Can't tell you about the Optima requirements, but a single collection falling off if you have multiple, likely won't help that much, but paying your utillization down from 75% to 2% or whatever is a major win credit wise.
If you didn't have an issue with Amex in the past, and that "Settled" line with C1 is a bugaboo, with your revolving utilliztion fix, think you'd be a shoo-in for a Plat if you wanted it, and it does seem like it's a good fit for you. YMMV with those two issues but if youv'e been treating your Optima well, and you did pay the Amex one in full, I think you have a good shot at approval anyway. You're looking to spend big compared to a lot of people, and that does buy a tremendous amount of forgiveness with Amex and likely most other lenders as well.
Personally I'd take the swing anyway once the utilization is fixed, as even then a denial is 99.5% likely to be a SP anyway, so there's really no harm at all taking the chance: you either wind up with what appears to be a great card for you for 1 HP (and likely some backdating goodness), or nothing happens to your credit report. Really hard to get better than that in the credit card universe.
Thanks for the insight! That was very helpful advice.
Yes, this is the Oasis Optima. I've read conflicting reports from here on the forum and also from speaking to a CSR at Amex. The CSR said that I'm eligible to apply for a new product - I just can't PC from the Optima.
@CH03 wrote:Yes, this is the Oasis Optima. I've read conflicting reports from here on the forum and also from speaking to a CSR at Amex. The CSR said that I'm eligible to apply for a new product - I just can't PC from the Optima.
+1
As Credtaddict mentioned above, the Oasis Program Optiam cannot be PC'd. Unfortunately, mixed results canot predict your outcome (likely AMEX internal policy driven) in which some folks do need to close their Oasis Optima to qualify for a new AMEX card (with no guarantee of approval course); while others have been able to obtain a new AMEX card without having to close the Oasis Optima.
I have been hearing mixed things about having to close your Oasis Card before applying. Lately Ive heard people being able to apply for another Amex without having to close their Oasis Card. Maybe they changed the policy or they allow you to apply for a Charge Card without having to close the Oasis Account.
like other posters mentioned, I would get your utilization down and let it report before applying.
Keep us posted!
Update
1. The two CO's were removed from my CR via GW resulting in a clean CR.
2. Applied and received CLI on BOA Cash Rewards from $1k to $5k
3. Closed American Express Optima Account on 11/26
4. Applied and approved for American Express Platinum Charge on 11/29
5. Applied and approved for CSP w/ $18k CL on 11/29
As you can see, I have much to be thankful for, especially all of the help that I've received due to the insight and experience from members of this forum.
My one piece of advice is to be extremely persistent in terms of trying to clean up your credit report - I would not take no for an answer when it came to removals.
I hope everyone had a nice Thanksgiving!