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Am I on the Right Path? I need Help

Established Contributor

Re: Am I on the Right Path? I need Help

Agree with everyone: NO MORE APPs..let your inqs age..

Starting Score: TU 686 EX 641 EQ 690
Current Score: TU 779 EX 767 EQ 740
Goal Score: 800 Club

BCE $12.5K, 5/3 Sig $10K, Capital One Amex BCE 15K, Walmart 10K, US Bank Cash+ 15K, Sam's Club 10K, Chase Freedom $6K, Discover More $15K, Costco $6K, CapOne Quicksilver One $7K, Cap One Quicksilver $5K, Amazon $3K, Barclays $12.5K
Message 11 of 12
Moderator Emeritus

Re: Am I on the Right Path? I need Help

@sdfinch wrote:



All I do everyday is work with people just like you.  I consult for a financial planning firm and help people with getting lower interest rates on credit cards. 


I would get rid of half those cards personally because they are not helping you.  All your Feb 11th cards need to go in my opinion.  All are bad banks and will not look good on your credit report.  Actually, the cards themselves are fine - they are not bad and it's simply not true that they "will not look good on your credit report.In OP's case, the sheer number of new accounts is something of an issue rather than the actual account issuers.   In this case, they may be helping with utlization and with number of accounts vs. number of accounts reporting a balance.     Do not close Express, because you have had that card the longest.  Absolutely agreed - keep that baby open forever & make sure to use it every few months even for something little.  Keep 'em happy.  The length of your credit history makes up 15% of your FICO score.  Most all your accounts have very short history.  35% of your score is your payment history, so keep paying ontime.  Keep all you 2010 accounts for now.   I can't determine what your utilization or number of accounts reporting a balance is - IMO, until you know those two things, it's impossible to determine if or when you should close any accounts.  At that point, I would start giving AF cards a very close examination to see if they should stay open - but first you need to check utilization & number of accounts reporting a balance.


On your BOA card, you should be able to convert over after 6-12 months to unsecured.  Amounts that you owe on your accounts equal 30% of your FICO score, so keep balances under 25% of available credit for best results.  OP - Remember that FICO is also concerned with number of accounts reporting a balance, so shoot for paying accounts down to zero to reduce the number of accounts reporting a balance.  Capital One is fine for now also, you can do a product trade next year and get a better credit card product.  


The car loan you can get with a 650 score easliy. Interest rates are pretty good right now and dealers need to sell cars bad.  They have alternate lenders to work with for people with fair credit if needed.  It should be under 10% for sure.  A way to beat the finance charges is to make 2 payment per months. 


Example:  Make your first car payment when it come do.  2 weeks later make half of your car payment.  This stops your finance charges from accruing for 30 days and shortens it to 15 days.  You end up paying less money this way.  So when payment #2 comes in you only owe a half payment and you were only receiving finance charges for 15 days.  I'm not personally familiar with this type of loan.  I have made several payments in advance on our auto loan and the interest continues to accrue daily.  I do save a boatload in interest, but that's because the principal is paid down more quickly and the repayment time is reduced.  Perhaps there are different types of auto loans out there than the ones I am accustomed to.  Make that half payment or full payment again if you can.  But make sure to always make a 2nd payment ever 2nd week. 


I hope this helps,






OP - congrats on being on top of your payments.  When you give us more info on the current balances on all of the cards, folks will be able to chime in with helpful information for you!  Start keeping tabs on your AAofA and number of new accounts (too many! - you're giving some of us heart failure! Smiley Wink ) so you can grow your FICO score.

Just puttin' syrup on something, don't make it pancakes.
Message 12 of 12
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