@swtprncess281 wrote:
Can someone assist me with a path forward on my credit cards? I'm wondering how I maximize my score with my credit cards as they stand? Should all accounts always report a zero balance or should each be zero'd out like every other month? My scores are in my signature and I'm trying to get them to Amex range.
Account Name Opened Balance Limit Capital One Apr-03 $3.00 $600.00 Capital One Mar-07 $329.00 $600.00 Capital One Sep-08 $0 $600.00 TD Bank USA/Target Credit Sep-08 $0 $500.00 Macy's Dec-08 $0 $100.00 Jarad Mar-09 $0 $800.00 Comenity Bank Buckle May-10 $0 $350.00 Comenity Bank Limited May-10 $0 $450.00 Comenity Bank Ann Taylor May-10 $105.00 $2,310.00 Comenity Bank NY&Co May-10 $0 $820.00 Best Buy Rewardzone May-10 $0 $300.00 Comenity Bank Victoria Secret Jun-10 $0 $450.00 Merrick Bank Jun-10 $597.00 $1,300.00 Barclays Bank Delaware Aug-14 $1,010.00 $1,700.00 Comenity J. Crew Nov-14 $0 $300.00 Comenity Bank Express NEXT Nov-14 $0 $500.00 Navy Federal Credit Union CashRewards Nov-14 $0 $10,000.00
This is a decent set of cards, balances are in control. You have no balances on the store cards. You might consider closing several of them.
Keep the Credit Cards open, especially the older Capital One cards.
You aren't using the NFCU Cash Rewards line/card? Can you do a balance transfer to that? If so, transfer $500 from the Barclays Bank Delaware account. This puts a slight load on the NFCU account (you owe the money anyway, just using it more effectively in your balances). Not only that, but you aren't showing ANY utilization on the NFCU item, which I think is not helping your scores. This $500 transfer would put a 5% balance on that account, and start showing some payment activity. Pay it slowly.
Moving the $500 from Barclays changes that account from 60% utilization (quite high in FICO scoring) to 30%, a much better level. Then continue to pay it down slowly.
Pay the Merrick Bank to $400 or lower, this puts it from 45% util to 30% util. You could even BT $200 to NFCU to get this Merrick balance down. Then continue to pay this down slowly.
Pay the 2007 CapOne account to $200 and then continue to slowly pay it down.
The main focus of the above suggestions is to get each card at 30% or lower utiliziation, but STILL LEAVE A BALANCE that you are paying off slowly (at least minimum payments) over time. Credit building takes time, and it takes showing payments. I think you've got the foundation to show good payment history, although I can't say how long it will take to raise scores. The other consideration is, AMEX probably wants to see consistent, on time payments and by using all these accounts in that way, hopefully your story will read well for them, even if you are only in the mid-high 600s at the time you app.
Good luck!
Closing the store cards is your option, it's only a suggestion. They are a valid plus to your credit history, and will still be vislble as history if closed. There is sometimes a negative if you have too many credit lines open, although $300 seems like a limited credit line, and it seems unlikely that would be a problem in this case. The other plus they are contributing is Average Age of Accounts, their age is a plus.
Yes, zero percent is fine, but if you want to start boosting your score, utilization is more important.
Good luck!
