How am I doing?

[Laura2323]

Hi all - new here to the forums. Myfico  - Equifax 627 and TU is 654. 

I have been in the process of rebuilding my credit for a while now.  I shortsaled my home back in July, 2010 so that has hurt things a tiny bit and had a bankruptcy that was discharged back in 2001.  So at this point, I have all the rebuilder cards and have now acquired all of the so-called prime cards.  I am planning on closing some of the accounts below but want to do it slowly as the annual fees show up, etc.  I have a lot of inquiries - I believe the lowest is on TU at about 10 or so.  I have app'd a lot recently to try and get some better credit cards.  My plan is as follows - please let me know if you have any questions and your thoughts on what I should do next (other than garden for a while LOL).

American Express Zync (Charge card)- This is a new card and I applied solely for the backdating which I was able to get them to do.  They backdated the card with a simple phone call (did not have an account number or anything) to 1991.  This was very good for my age of credit since I have so many new accounts.  I only charge about $100 a month on it.

Avenue - New card as well.  Store clothing card with really good coupons, etc.  Would like to keep this card.  Credit limit is $500.00 - zero balance.

Bill Me Later - Don't really use this much except when I need to get a large purchase from Walmart or whereever.  I do like the six months no interest on this.  They also do not report so I like that as well.  Credit limit is $656 or so (weird number)  LOL - zero balance.

Capital One - This is a low limit ($500.00).  I am thinking of canceling this card once the fee is due.  Zero balance.

Capital One - Another low limit ($500.00).  Will cancel this as well once the fee is due.  Zero balance.

Capital One Mastercard - Have a limit of $3,600.00.  Would like to keep this card and perhaps upgrade to a Venture card eventually.  Balance is $3,000.00.  Will be paying this off over the next three months or so. 

Chase Freedom - New card with a limit of $2,000.00.  Will keep this card.  I was initially denied for this but called in and got a recon.  Balance is approximately $1,000.00.  I make several payments a month on this card and use it the most frequently for the rewards. 

Credit One - Credit limit of $1,050.00.  Will cancel this probably this month due to monthly fee, etc.  Zero balance.

Discover - New card with a limit of $1,500.00.  Will keep this one as well.  Zero balance.

Kohls - Store card - credit limit just increased to $700.00.  Good coupon deals with this and shop here quite a bit.  Will keep this one.  Zero balance.

Merrick Bank - Credit limit of $1,500.00.  Was planning on cancelling once fee is due.  Zero balance.

Orchard Bank - Credit limit of $700.00.  Was planning on cancelling once fee is due.  Zero balance.

Reward Zone Mastercard - $500.00.  Was planning on getting rid of this one as well - may hold off to see what happens with the buyout.  Zero balance.

Target - Another store card - probably will get rid of this one too as it only has a limit of $200.00 and I don't shop there often enough.  Zero balance.

Walmart - Store card with a limit of $950.00.  They have good finance offers on larger purchases.  Would like to keep.   Balance $700.00.  I make payments on this because I previously had a Lowe's card that when I paid it off, they closed the line.  Kinda nervous that will happen with this card.

As you can tell, I have a lot of credit cards and just need to garden for a while.  I do also have a care credit card with a $5,000 limit and a Kay's jewelry card (new) with a credit limit of $5,100.00.  I have no plans on using these cards currently.  Will eventually use the care credit for my daughter's braces.  I pretty much try and pay in full each month and sometimes run a balance for several months, depending on what is happening that month.  I will be paying down the cards with balances to try and keep the uti low and just so you are aware, I try and put something on the majority of the cards ($20 bucks here and there) to keep them active.  It is just getting too time consuming to keep track of them all.  Your thoughts and comments are welcome!

[castlefox]

Well first off welcome to the forums. 

Sounds like your doing much better than you were doing.

IMO, I think your #1 priority should be saving up 6+months of emergcy cash so that you do not carry a ballance on any of your cards.  It will also cousion yourself incase you lose your job or some other sudden expense occurs.  (PS> Rainy days, DO happen count on it.   For example my brother was driving a beater car around for that year and i've been telling him to get a new car.  Last month he went to the mall and when he got back to the parking lot he relized that his car was on      FIRE       not kidding.  Now he takes the bus around.   

I would also suggest adding up your current credit line and then subtract whatever card you thinking about closing and look at the % difference.   Do the same thing with your utilization % for before and after.  

You could also try and call a card that your thinking about closing and tell them that you thinking about closing it.  They may wave the fee as a way of trying to keep you with their card. 

[Laura2323]

Thanks for the reply.  I am trying very hard to get my score where it should be - it has become a hobby!   I have recently started a savings account to work on an emergency fund and it is done through automatic withdrawal so I don't have to worry about doing it each month.  I also started contributing (only 2%) to my pension at work - I figured at least it is something.  I think I may be ok in terms of the utilization because the new cards basically even out what I would cancel (and they actually exceed the credit lines of those I would cancel).   I plan on getting everything paid off by the end of the year and part of the higher capital one balance is 0% interest for a year but I still want to get it paid off.  In your opinion, would it be better to leave the cards open with a zero balance or cancel them?  I do not want Amex or any of the other new cards to reduce my credit lines or have a problem getting a new credit line (i.e. a car loan or something if necessary) because of "too much available credit."  Thanks again for your input.

[smc733]

Looks good!  And the cards you have on the chopping block are the ones that I would recommend cutting.  Sounds like a great plan to me.

And yes, credit building can become quite a hobby (my family thinks I'm crazy).

[castlefox]

When your talking about leaving the cards open with a zero ballance.....   Do you mean your not putting any charges on them at all or do you mean that your paying them in full so that your not charged an APR fee?

[kjm79]

As stated above, the first cards to close are the AF cards.  Follow the suggestion of calling the CCC and telling them you are going to close the account, might waive the AF to keep your business.  If they waive the fee, keep the card open and let it grow.  It won't hurt you at all.  The CL from that open card will actually help you.  Closing any cards right now with the balances you are carrying WILL hurt your UTIL.  When you close that card you lose that CL and lower your available CL across the board.  So see if you can get some of the AF's waived and let those cards grow.  Also, something else to consider before closing any accounts would be to look at the dates opened and and keep the older accounts open so they stay on your reports longer subsequently helping your AAoA in the long term scheme of things.  Closing accounts in the short term do not effect your AAoA.

I'm in the same boat as you on the BB RZMC and the Target cards.  CLI's have been stagnent.  Not hurting me to leav them open,minimal CL so not to much effect on my UTIL if the CCC closes them due to inactivity. 

Good plan though.  And great job on the rebuilding. 

[Laura2323]

Thanks everyone for the tips.  I will keep you updated on my progress! 

[Anonymous]

Good woek. Keep it up

[castlefox]

Well that is good to hear your started to build your emergency fund.  I think its easiest to save when its done automatically through a direct deposit.  Well starting to put money into your pension at work is great (from what I hear they are awesome.)

I would say if its getting hard for you to manage all of those CC it would be better to close some of those crappier credit lines with fees rather than missing a payment and having a mark on your record. 

I dont think there is any specific level of how many crdit line are too many.  It really depends on each lender thinks is too much or too many.