Re: Credit Card Strategy (For The Future)

Anonymous · ‎08-13-2009

So, I'll start off by giving a rundown of my current credit card status and then ask my questions after:

1. Capital One (Major) - Credit Limit: $2600 - Age: 5 Years, 10 Months

2. JB Robinson (Store / Jeweler) - Credit Limit: Not Specified? - Age: 5 Years, 4 Months

3. Macy's (Store) - Credit Limit: $2000 - Age: 3 Years, 1 Month

4. JCPenney's (Store) - Credit Limit: $1500 - Age: 2 Years, 11 Months

5. HSBC / Best Buy Mastercard (Major) - Credit Limit: $1050 - Age: 1 Year, 11 Months

6. Chase (Major) - Credit Limit: $400 - Age: 1 Year, 8 Months

7. PNC (Major) - Credit Limit: $1000 - Age: 5 Months

The card that really sticks out is the Chase card with a CL of $400. I've tried to have it increased once before with no success. If I used my card to buy dinner and it reported the balance, it would drive the utilization of the card up to a higher than wanted %.

Another is the JB Robinson card, I have not used it and never really plan to use it in the future. I got it back in the day to use it but decided against it. Since it doesn't report a credit limit, the only thing it's helping is my credit history.

Should I close any accounts that I have open? What's the best way to get a CLI without receiving hard pulls to my credit score?

Thanks!

MarineVietVet · ‎08-13-2009

@Anonymous wrote:
So, I'll start off by giving a rundown of my current credit card status and then ask my questions after:

1. Capital One (Major) - Credit Limit: $2600 - Age: 5 Years, 10 Months
2. JB Robinson (Store / Jeweler) - Credit Limit: Not Specified? - Age: 5 Years, 4 Months
3. Macy's (Store) - Credit Limit: $2000 - Age: 3 Years, 1 Month
4. JCPenney's (Store) - Credit Limit: $1500 - Age: 2 Years, 11 Months
5. HSBC / Best Buy Mastercard (Major) - Credit Limit: $1050 - Age: 1 Year, 11 Months
6. Chase (Major) - Credit Limit: $400 - Age: 1 Year, 8 Months
7. PNC (Major) - Credit Limit: $1000 - Age: 5 Months

The card that really sticks out is the Chase card with a CL of $400. I've tried to have it increased once before with no success. If I used my card to buy dinner and it reported the balance, it would drive the utilization of the card up to a higher than wanted %.

Another is the JB Robinson card, I have not used it and never really plan to use it in the future. I got it back in the day to use it but decided against it. Since it doesn't report a credit limit, the only thing it's helping is my credit history.

Should I close any accounts that I have open? What's the best way to get a CLI without receiving hard pulls to my credit score?

Thanks!

Unless there are annual fees involved why close any of them? You said about the JB Robinson card "Since it doesn't report a credit limit, the only thing it's helping is my credit history". Well all of them are helping your credit history. How is your utilization on these accounts?

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Anonymous · ‎08-13-2009

I currently have a balace of $0 on all the cards except one. I try to carry a $20-$40 balance on my lowest APR card to stay < 3% utilized month-to-month.

My main gripe is the Chase card is $400 and apparently they are awful at increasing CLs. My next inquery will be for a mortgage so I want to optimize my credit over the next 6 months.

*EDIT* I don't try to carry the balance to get interest, I try to carry it to get reported since my HSBC card's balance gets reported on the last day of the month.

Message Edited by Cyan007 on 08-14-2009 12:12 AM

MarineVietVet · ‎08-13-2009

@Anonymous wrote:
I currently have a balace of $0 on all the cards except one. I try to carry a $20-$40 balance on my lowest APR card to stay < 3% utilized month-to-month.

My main gripe is the Chase card is $400 and apparently they are awful at increasing CLs. My next inquery will be for a mortgage so I want to optimize my credit over the next 6 months.

*EDIT* I don't try to carry the balance to get interest, I try to carry it to get reported since my HSBC card's balance gets reported on the last day of the month.
Message Edited by Cyan007 on 08-14-2009 12:12 AM

Looks like you are in pretty good shape. Just keep doing the same things. But I still wouldn't close the Chase card. A $400 CL is still a $400 CL. Besides Chase might save you the trouble of closing that account the way they've been treating folks!!!

Anonymous · ‎08-13-2009

@MarineVietVet wrote:
Unless there are annual fees involved why close any of them? >

For me so I don't have more cards to manage than I could ever have need for when I have better things to do than trying to use them enough to keep them from being closed by issuer. Avoids any risk of another creditor seeing an acct closed by issuer and then doing a detrimental AA based on that. I keep my oldest and util low enough though.

Anonymous · ‎08-13-2009

Haha... true. Ideally... I would like my largest CL to be $5000+ seeing as I make a good bit of money. I think seeing CLs of 10k+ would bode well when a lender looks at my report in detail to see if I'm a screw up or not.

Anonymous · ‎08-13-2009

@Anonymous wrote:
Haha... true. Ideally... I would like my largest CL to be $5000+ seeing as I make a good bit of money. I think seeing CLs of 10k+ would bode well when a lender looks at my report in detail to see if I'm a screw up or not.

Closing cards will not help you get there.

Consider joining a nice CU. They are giving the better CL's these days and are not focusing much on AA.

MarineVietVet · ‎08-13-2009

For me so I don't have more cards to manage than I could ever have need for when I have better things to do than trying to use them enough to keep them from being closed by issuer. Avoids any risk of another creditor seeing an acct closed by issuer and then doing a detrimental AA based on that. I keep my oldest and util low enough though.

I definitely can see your point but all I do is have each of my cards pay a different monthly recurring bill with automatic billpay. That way I don't have to keep up with which card needs to be used this month, quarter, etc. It works very well for me but I don't have all that many accounts to track.

Anonymous · ‎08-13-2009

@Anonymous wrote:
@Anonymous wrote:
Haha... true. Ideally... I would like my largest CL to be $5000+ seeing as I make a good bit of money. I think seeing CLs of 10k+ would bode well when a lender looks at my report in detail to see if I'm a screw up or not.
Closing cards will not help you get there.

Consider joining a nice CU. They are giving the better CL's these days and are not focusing much on AA.

That's not necessarily true. I first went over 4 figures when I only had 2 cards. Is helpful OP doesn't have larger lines though because some creditors don't like giving more credit if it looks like the individual has too much available. OP, keep up the great job! Keeping util so low is excellent management of your credit. In time you might see those higher lines.

Anonymous · ‎08-13-2009

@MarineVietVet wrote:

For me so I don't have more cards to manage than I could ever have need for when I have better things to do than trying to use them enough to keep them from being closed by issuer. Avoids any risk of another creditor seeing an acct closed by issuer and then doing a detrimental AA based on that. I keep my oldest and util low enough though.

I definitely can see your point but all I do is have each of my cards pay a different monthly recurring bill with automatic billpay. That way I don't have to keep up with which card needs to be used this month, quarter, etc. It works very well for me but I don't have all that many accounts to track.

I can see that working. But I don't think I have enough bills to do that with the # of open lines some ppl carry.

Credit Card Strategy (For The Future)

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Credit Card Strategy (For The Future)