Advice for a Newbie.... Getting Away from USAA Secured Credit Card, Among Other Things

[Anonymous]

So hi there,

Other than a few student loans, I started on my credit journey almost 2 years ago.

I opened a secured credit card from USAA July 2014 but I didn't realize to get the $5000 back, I would need to close the account (my first account!) 

I also have the USAA Rate Advantage (April 2015, CLIed to $4500), Chase Amazon Rewards (September 2015, $3000) but got spooked by the fact that I needed to close my first account so I got 3 NEW cards (Chase Freedom Unlimited - $4500, USAA Cash Preferred Rewards Visa - $5000, AmEx BCE - $10,000).  I also applied fo Chase Freedom and BlisPay... still waiting on those.

So now I have a total credit limit of $27, 000 (excluding my first account) but I only spend about @250-$400 a month, not including rent.  Was that a bad move? Should I enter the garden?  Do I even need to worry about CLIs?

My Scores all seem to be in the 730-750 range.

[RonM21]

I don't think it would hurt assuming your inquiry count isn't too high. You maybe can garden now, but I've seen many get more than 3 cards in a year.

[Anonymous]

Ahh... thank you. I think I accumulated about 10 inquiries within the last 24 months... 6 within the last month. I am guessing that is not the best? Should I just leave my credit alone for my score to increase? 

[Anonymous]

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@Anonymous wrote:

Ahh... thank you. I think I accumulated about 10 inquiries within the last 24 months... 6 within the last month. I am guessing that is not the best? Should I just leave my credit alone for my score to increase? 

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That's how it works. Just keep paying bills on time and your credit will grow.  Since your oldest account is only 2 years old, I'd close it to get your $5000 back.

[Anonymous]

Thank you. I am definitely going to close that. I applied for 5 CCs (I got accepted for 4, waiting on the last one) before I do. I sort of regret going app happy but now I at least have a good CL cushion for future utilization rates.

[Anonymous]

My advice would be to make sure that you use the credit cards you have now responsibly. Keep utiliaztion low and never pay interest. Use your cards, but always PIF and never pay late. I would close the secured card and get your money back. You have better cards now and your score will grow over time with responsible use. The closed account will still report to the CRA so your AAOA won't go down when you close it.

[Anonymous]

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@Anonymous wrote:

My advice would be to make sure that you use the credit cards you have now responsibly. Keep utiliaztion low and never pay interest. Use your cards, but always PIF and never pay late. I would close the secured card and get your money back. You have better cards now and your score will grow over time with responsible use. The closed account will still report to the CRA so your AAOA won't go down when you close it.

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Right now, I am track for having zero derogatories, low utility, and zero interest payments! Ohhh, that's a relief about AAOA.  However, why do a lot of sources say to keep your oldest account open? Is it because there is a chance that closed accounts fall off after 10 years?  Oops... I screwed over my AAOA temporarily.... gonna bury myself in the garden now. LOL

[Anonymous]

Yes after 10 years or so closed accounts do fall off, but your others will have aged by then.
It sounds like you are in the right tract.

[Anonymous]

You are all good, just do not panic and get cards you do not need and will not use. It is like driving a car if you go off the road do not overcorrect into oncoming traffic. Also be sure you are doing the sign up bonuses, with such a low spend you may need to space out cards more so you can hit minimum spend for the sign on bonuses. Instead of doing an application spree.

[Anonymous]

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@Anonymous wrote:

You are all good, just do not panic and get cards you do not need and will not use. It is like driving a car if you go off the road do not overcorrect into oncoming traffic. Also be sure you are doing the sign up bonuses, with such a low spend you may need to space out cards more so you can hit minimum spend for the sign on bonuses. Instead of doing an application spree.

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Great advice. i was a bit reactive.  I am planning to incorporate my rent to meet the spend requirements.  I am officially going into the garden until June 2018... I have over $35,000 in available credit.

Right now, I have:

Freedom - $4500, signup bonuses, categories

Freedom Unlimited - $4500, signup bonuses, everyday card

Chase Amazon - $3000, signup bonus  a few months ago, I shop at Amazon 4x a year or more (thinking of reallocating to the Freedom Unlimited in a year or so) - have $25+ in points

Discover It - $3000, categories, Discover deals,  free FICO score

AmEx BCE - $10,000, Signup bonus, I spend $150 a month on groceries, AmEx perks

Marvel Mastercard - don't know the limit yet, I spend a decent chunk of my play money on food, wanted a MC with rewards

USAA Cash Preferred Signature Visa - $5000, similar to Freedom Unlimited but with no FTF and Visa Signature perks - this will be my travel card in the future, may consider CSP in two years' time, back up everyday spend card if something ever happens w/ Chase

USAA Secured Platinum MC - $5000, first card, gonna close to get back the deposit

USAA Rate Advantage Patinimum MC - $4500, first unsecured CC, SLIGHTLY lower APR than most of my other cards, NO REWARDS

Should I keep the USAA Rate Advantage or close it?  I have no use for it other than having more credit limit.