CSP?

[Harvey26]

Mom is looking at getting the CSP and converting credit limit from freedom to the CSP. I know i tried to get her to keep both open but she said no.. lol but would now be a good time for her to go for it to get the best SL. EQ: 764  TU: 733 and EX: 752... TU is lower because there is account which is not hers and we are disputing so once that clears up it should return to normal she currently owes about 2k on freedom or should she wait until its at 0 balance and let that report? so her scores can jump back to the 800s

[Anonymous]

paying that one balance probably won't put 40+ points on her score unless her limit is $2k and that's her only card. if she wants it then she should go for it but it also helps to know if she has other $5k plus cards in good standing and at least 6 months or so. this is quite limited info

[Anonymous]

Her scores are better than mine were when I got the CSP, but what do her other TLs look like? Does she have other cards at 5000 or better? Note, my SL might have been better if I had wated until the bad guys were removed from my report, but I was impatient. 

[Harvey26]

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@Anonymous wrote:

Her scores are better than mine were when I got the CSP, but what do her other TLs look like? Does she have other cards at 5000 or better? Note, my SL might have been better if I had wated until the bad guys were removed from my report, but I was impatient. 

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Oh yes she has a 9k with credit union thats 7 years old and freedom has 7.5k on it

[Harvey26]

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@Anonymous wrote:
paying that one balance probably won't put 40+ points on her score unless her limit is $2k and that's her only card. if she wants it then she should go for it but it also helps to know if she has other $5k plus cards in good standing and at least 6 months or so. this is quite limited info

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Yes all her cards are over 6k and are years old and scores where 810 abd above before the 2k reported. so hopefully they will go back

[Anonymous]

shouldn't be much issue

[Anonymous]

Based on all the info you have given us, I don't see why she wouldn't get approved.

And it wouldn't hurt to let the $0 balance report before applying.

The SL is going to be at least 5K but with scores like that, providing income backs it up, it will probably be more, so she shouldn't worry about that either.

Closing the Freedom would be a bad idea though, it has no AF and the 5X points from the rotating categories are able to be bundled together with her CSP points.

Stress this to her as this would be like losing out on free points/money...

[takeshi74]

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@Harvey26 wrote:

Mom is looking at getting the CSP and converting credit limit from freedom to the CSP. I know i tried to get her to keep both open but she said no.. lol

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As long as she has considered whether or not earning 5x UR points on the Freedom's rotating categories would be of benefit to her it's her decision.  Does she understand that the UR points earned with the Freedom can be combined into the CSP's UR account and transferred to leverage better redemption value than the redemptions options that the Freedom is stuck with?

Has she carefully considered whether UR is suited to her spend categories and levels?  Has she looked at UR transfers partners and redemptions with the partners to see what value she can get per point?  If not, she should.  Programs like UR are generally better suited to higher amounts of spend.  For lower spend levels a cash back card may be a better fit.

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@Harvey26 wrote:

would now be a good time for her to go for it to get the best SL. EQ: 764  TU: 733 and EX: 752.

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It's never just about score but you can refer to the Credit Pulls Database (Google to find) if desired.  Are these scores FICO 8's?  Make sure you're considering the specific scoring model whenver you reference scores.  Also consider the relevance of model & CRA to a given creditor/product.  Unless Chase triple pulls her (unlikely IMO based on what yuo've presented so far), scores with all 3 CRA's aren't going to be considered.  Whether or not it is a good time all depends on her credit profile.  Its it as good as it can be?  Are there any significant improvements expected?  Are there any significant issues expected?

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@Harvey26 wrote:

she currently owes about 2k on freedom or should she wait until its at 0 balance and let that report? so her scores can jump back to the 800s

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It's not just about balance.  It's about revolving utilization.  What is her overall and individual revolving utilization on her revolvers?  Keep in mind that while 30% is a suggested max that lower is generally better as long as all her revolvers are not reporting 0 balances.  There is a hit if all of them are reporting 0.  The suggestion for optimization is to allow only 1 report with a very small balance -- well under 10%.

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@Harvey26 wrote:

so her scores can jump back to the 800s

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If those are FICO 8's then best terms are generally offered in the 740-760 range with FICO 8.  Again, though, it's never just about score.  Her entire credit profile will be considered as well and specifics could have an impact.

[Anonymous]

You really need to convince Mom that it is in her best interest to keep the Freedom over. Even if she transfers all but $500 of her credit line, it will be in her favor. Convince her, you can do it.

[Mattopotamus]

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@Anonymous wrote:

Based on all the info you have given us, I don't see why she wouldn't get approved.

And it wouldn't hurt to let the $0 balance report before applying.

The SL is going to be at least 5K but with scores like that, providing income backs it up, it will probably be more, so she shouldn't worry about that either.

Closing the Freedom would be a bad idea though, it has no AF and the 5X points from the rotating categories are able to be bundled together with her CSP points.

Stress this to her as this would be like losing out on free points/money...

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This.  Not to forget that if she does a PC she will not get the sign up bonus the CSP offers.