My Credit Card Strategy

[CA4Closure]

PREFACE: November 2011 Foreclosure. Hit credit report April 2012. This is my only derogatory.
All credit card companies I had at the time cancelled my credit cards except Capital One which changed my NO ANNUAL FEE credit card to a $5 a month credit card with a 9.9 APR. I lost my home due to job loss plus caring for my elderly parent.

TU Vantage 3.0 - 744; TU Score 8 - 739; FICO Bank 8 - 755, Vantage Score 3.0 - 744

Today I am debt free with utilization under .5% . . . yes, this is not a typo. I have about $36,000 in available credit and only have a gasoline card that I use every month (Costco) of about $100 each month.

So here is my strategy I am using. Many of my credit cards have an APR of 18.9 to 24.9% except for that Capital One account that is 9.9% APR. Each month I choose the different cards to use to keep my credit history with each of my credit cards. Obviously I use my gasoline cards but I rotate my Discover, Chase Freedom, Capital One QuickSilver Signature and Platinum and Chevron VISA cards. The rest of the cards are left at home.
 

I pay off my balances way before they are due when I receive my paycheck every two weeks. Discover offered me a 0% interest rate for 12 months which is going to expire March 2018. I made a large purchase using this term of $5,000 and paid that off last month.

Soon I am going to take out a car loan with Ford Motors for a 2018 vehicle ($15,000) hopefully with 0% financing. I wanted the loewst utilization so when Ford pulls my credit, I would be accepted without any question. But once I get the car loan, I still plan on keeping my credit card use very low. Gasoline and emergencies only like auto repairs, car rentals when I need to get y car repaired, etc.

What are your thoughts?

[Gidgetmom]

Congratulations on overcoming the adversities forced upon you.  That's the first thing that stands out to me.

You also appear to have a solid plan for your credit.  My personal plan is very similar, so I'll be following this thread for any useful advice. 

While the APR's are mid-high range (Cap One excepted), your current plan makes them irrelevant.  

Good job!  Looks good to me!

[AverageJoesCredit]

Youve done an amazing job and it looks like you are making credit work for you not you for it. Great job and continue your pif practices its paying off. Once im cc debt free its gonna stay that way, barring any extreme emergency. Debt free where as you can control, is a great goal

[Anonymous]

I'm mobile and uncaffeinated so far this morning so apologies if I missed this, but do you have an open installment loan reporting?

If not, please go do the Alliant SSL Technique (today!).  My "11 rules" signature link details it a bit and provides a forum link.  That can boost your scores by a LOT and help with an auto loan as soon as December (if you apply early this month).  I've helped about 50 people on Facebook in 2017 qualify for auto loans just by using this tactic, which costs almost nothing over 5 years.

If you do have an installment loan open and reporting (mortgage, student, personal, auto), don't bother with the SSL but if not it'll help you with better scores for sure.

Your strategy looks solid to me except I think if you PIF (~AZEO), you are leaving money on the table by not reward/cashback chasing.  I'd lay out your budget in a spreadsheet, categorize each dollar spent, and maximize your cash back since you're managing AZEO so well.  Even if you "only" spent $10,000 a year on a credit card, that's anywhere up to $500 a year you could be earning in cashback rewards ($1000 with Discover's 5% card the first year if categories line up).

[Anonymous]

First off congrats on pulling through with what has been thrown at you. My ex husband and I dealt with a foreclosure that we were eventually able to get out of with a loan modification, but it definintely hurt us both credit wise. Continue to PIF those balances and keep your util low. I think you'll have no issues getting a good loan with a super low, if not 0% apr for your car. I recently bought a new Kia Sorento, and while my foreclosure-ish ding is a bit newer on my report than your's, I was able to get a 2.99% apr for a 72 month loan (which I never thought I would be able to do on my own). I think your plan is a great one, I look forward to any updates you provide as you continue to reach your credit goals!

[CA4Closure]

I do not have a auto loan yet. My last auto loan was paid off in 2010. I was reading your blog there and will take note of it. I have a 2006 Toyota that is on its last legs. This is why I am looking for a new car right now. You folks are great. I have been reading these forums for three years before I joined officially a few months ago.