2011 Goal - Am I on the right track? Some questions on how to get there...

[homerunstacy]

GOAL:  Buy used 3-4 year old BMW after I pay off my cards in Feb 2011. Loan would probably be for 25k and I don't want to pay more than $550/mo

FICO is 710. No idea what my auto enhanced score is.  I've worked in the IT at the same hospital for almost 10 years and salary is 85k.  Mortgage payment $1992/mo. I have four other loans still reporting going back as far as 2001 from toyota financial with no baddies that are closed. Most recent paid off a couple months ago. 

Total overall accounts reporting: 27     

Baddies: 5 year old 30 day late on QVC Card , 5 year old + PIF medical collection from American Collections
AAoA : 4 years,  oldest card reporting  just over 19 years on EQ. I think oldest is lower on TU.

Would it help also to be more aggresive at going after CL increases on any of my cards or leave them alone?  I really don't need the credit.
Do the low CL's  on my sock drawer cards ever hurt a score?  I try to rotate a very low balance on SD cards and PIF to keep them active
with the exception of some of the low WFFNB  cards that I have not touched in a few years.  Maybe 1x every 6 months since they have been opened.

I am assuming my best rates might be from PenFed based on what I have read on the boards and the loan calculator they have I'm not a member... yet.
They are offering about 3% for 4 years today in my state on a used car loan. Not sure what score qualifies. Anyone know?

So I am thinking here are my options:

Opiton 1) Apply for PenFed card today  so it can age, maybe do a balance transfer from my BOA and Discover cards at the same time to take advantage of some more savings, apply for loan from PenFed when score goes up and util is under 2%.

Option 2) Just pay off cards and get util under 2% util. for a while, let current cards age,  I could join PenFed just before I am ready to apply for the loan and not worry about a card with them.  I am also a member of my hospital credit union for the last 10 years so I could check on rates with them but they are a pretty small shop so I doubt they will do better than PenFed.

Will all be PIF by  2/11 after I get my tax refund. Making 3x the min payments in the meantime:
BOA                              Bal: 2.3K  Opened  5/1/08  CL 4K    16% interest/no AF+ cash back rewards
DISCOVER                  Bal: 2.3K  Opened  3/1/09   CL 3K    19% interest/no AF + cash back rewards
WFNNB/Z GALLERIE  Bal: 2.2K  Opened  1/12/09 CL  2,6K 0% promo 
HOME DEPOT/CBSD Bal: 4.6K  Opened  7/1/208 CL 5.4k   0% promo

Will be PIF before November statement drops and then moving back to sock drawer:
HSBC BANK  Balance $886.00  Opened 7/1/04    CL 1.4K   

Sock Drawer/Zero Balance Cards:
CAP ONE                   Opened 8/1/03  CL 500
CHASE                       Opened 4/1/08  CL 1.2K  
GEMB/QVC                Opened 9/1/05  CL 250   
SEARS/CBSD           Opened 7/1/08  CL 2.6K    
WEBBANK/DELL      Opened 9/1/05  CL 1.2K        
WFNNB/CHAD          Opened 9/1/05  CL 100  
WFNNB/JL                 Opened 3/1/04  CL 170       
WFNNB/LA RED       Opened 10/1/07 CL 300 
WFNNB/AVE              Opened 12/1/09 CL 500
WFNNB/WEST ELM Opened 8/1/10  CL 4K           
                         
Thanks for your help! 

[homerunstacy]

Sorry for the long winded detailed post above.  One more question along with the ones above.  Is there a such thing as having too many cards?

Am I there now?  Just wondering if I should bother closing any of the small CL WFFNB cards I don't use.  Just worried I will risk my AAoA.

[DI]

No such thing having too many cards if your AAoAs can handle it.  I have 11 cards and doing just fine. 

[homerunstacy]

Thanks DI.  I was worried about having 15-16 cards. Glad to know that isn't an issue.

Any thoughts on building the relationship with PenFed by opening a card with them?  Should I balance transfer the discover and boa balance (5k-ish) if the CL covers it, and then just make sure it is paid off in full a few months prior to applying for financing on a car with them? 

Any specific PenFed credit card suggestions for a balance transfer?  I've been eyeing the visa plat with cash back rewards.

Just wondering if they would approve with my  low 700's credit score or if I should just wait a bit longer to shrink my util some more and then apply.

My util is very high right now - like 40%. I don't want to give them an excuse to deny me!

[homerunstacy]

Ok.. got jumpy joined Pen Fed CU and then immediately went for PenFed  VISA Platinum Cash Rewards.... DENIED 

Your application was not approved for the following reason(s):

Collection account(s).   (yikes  - just 1 medical collection that is 5 plus years old hurts?)

Length of time accounts have been established.   (wonder what they like to see)

Proportion of balance to limit on accounts is too high.  (well that is for sure)

Product: VISA Platinum Cash Rewards

Ah well. Guess I answered my own question and found out the hard way.  I will keep working on paying of current cards, then try to apply for a car loan when util is low again in a few months unless anyone has any other suggestions.

[Anonymous]

710 is a decent score but by no means a spectacular one in these times. You'd be better served to apply for prime cards when you reach 740+. Sorry about the failed PenFed application. They're picky about collections accounts. And so are many, many other banks on here from what I read. You'll have to wait until that collection falls off your report. The single most important thing for you right now is to pay down on your 11k in credit card debt. You have a lot of small accounts which is ok, but they don't help in countering your debt with a generous overall credit line. Good luck!

Rejection and denial is just part of any serious credit score builder on here. Sometimes it happens with reasons that make sense and sometimes rejections can come out of the blue for no apparent reason. I've read about people who were rejected for cards with scores in excess of 770.

[Anonymous]

I hope your buying a 335i coupe.

[homerunstacy]

"Rejection and denial is just part of any serious credit score builder on here."

Sound advice and thanks for responding. My first rejection ever too!  It still stings that just a single $130 medical collection from 5 years ago that I PIF'ed is hurting me for a credit card!  I wasn't even thinking that would be a factor.  I wonder if also asking for a $5200 balance transfer hurt my chances too.  Ahh well.  At least now I am a member of PenFed CU.  I probably won't even bother with the credit card  and just go for the car loan once the collection falls off in a couple years.  I am looking forward to working to getting my util. down.  Will not app for cc or car loan until my util is back reporting at 2%. The west elm card with the 4k limit is new as of two months ago as well. Maybe that recent TL also hurt me.

Do you think I should wait for when the collection falls off for the car loan as well even if I have a higher score and 2% util or less?

[homerunstacy]

Nope... I've been drooling over the 2005 - 2007 BMW X5 3.0i.   I want something a bit bigger.