Rebuilding Credit - Have 2 cards, approved for third

[neverrain]

Hi guys,

I just wanted to ask your advice on my situation and what you think is the best route for my situation.

A brief history - My current FICO is 618 (through this site).  I currently have an Orchard Bank card (unsecured) which I got when my score was around ~550 about a year and a half ago.  My limit on the card is $320 with a $65/annual fee (I think).  I usually just put random reoccurring online charges on it, Netflix, etc and pay it off monthly.  I've never been late, never missed a payment.  The annual fee isn't a big deal to me, the $65 isn't difficult for me to pay.  I'm more interested in the reporting.

I have a second secured Visa through my credit union with a $900 limit.  I use this for larger purchases and pay it off over a couple months when I make larger purchases with it.  Never been late, never missed a payment.  There is no annual charge for this and the interest rate is in the low teens.

I was just approved for a Capital One card with a $500 limit.  Capital One (unitl now) wouldn't approve me.  They offered 0% until next October then it jumps to 22%.  I wouldn't ever be carrying a balance on this card as I would pay this off monthly as well.

My question for you guys - Do you think having a third credit card is detrimental to the recovery of my credit?  Despite negative reviews online, I've never had an issue with the Orchard card, but I did call after making my 12th payment asking for a limit increase, to which I was told that such increases were not given anymore or provided by asking.  Should I dump this card now? Any ideas on keeping all 3?

[Anonymous]

When does your annual fee kick in? If it is in 8-10 months I say dump it right before the AF your score could be high enough by then to get you an even better card. The best thing to do is keep your util between 1-9% total preferably only on one card with the other cards a 0 balance. Most CC's report the balance on your statement to the bureaus, so paying it off monthly could still be hurting you. For example, if you had a statement cut on your Orchard Bank card with a balnce of $240, then your util would be 240/320. 75% not good for scoring or trying to get new credit. The way to avoid this isto pay your bill right before the statement cuts, and leave a $20 balance that will show on the CR, then pay the $20 before the bill is due. This will show activity on the card and give you the best util.

[-Cain-]

If you close the Orchard, you should keep it as a positive tradeline for 10 years, so that shouldn't hurt much now. The addition of the Cap1 will give you $200 extra to help utilization should you cancel the Orchard, so you shouldnt be hurt much there. Having three open cards shouldn't hurt you either. I thought I read somewhere that Orchard offered to lower the AF when someone threatened to close the account, it could've been a different card though. It is really up to you, but as long as you keep your accounts paid on time and in good standing, other CCs with bigger CLs, better perks/rewards, and possibly even better customer service will be waiting for you. Good Luck whichever route you take.

[LS2982]

+1

[Anonymous]

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@neverrain wrote:

Hi guys,

I just wanted to ask your advice on my situation and what you think is the best route for my situation.

A brief history - My current FICO is 618 (through this site).  I currently have an Orchard Bank card (unsecured) which I got when my score was around ~550 about a year and a half ago.  My limit on the card is $320 with a $65/annual fee (I think).  I usually just put random reoccurring online charges on it, Netflix, etc and pay it off monthly.  I've never been late, never missed a payment.  The annual fee isn't a big deal to me, the $65 isn't difficult for me to pay.  I'm more interested in the reporting.

I have a second secured Visa through my credit union with a $900 limit.  I use this for larger purchases and pay it off over a couple months when I make larger purchases with it.  Never been late, never missed a payment.  There is no annual charge for this and the interest rate is in the low teens.

I was just approved for a Capital One card with a $500 limit.  Capital One (unitl now) wouldn't approve me.  They offered 0% until next October then it jumps to 22%.  I wouldn't ever be carrying a balance on this card as I would pay this off monthly as well.

My question for you guys - Do you think having a third credit card is detrimental to the recovery of my credit?  Despite negative reviews online, I've never had an issue with the Orchard card, but I did call after making my 12th payment asking for a limit increase, to which I was told that such increases were not given anymore or provided by asking.  Should I dump this card now? Any ideas on keeping all 3?

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Here is what I recommend call Orchard and tell them you want the AF waived or you will be closing the card, if the first person doesn't budge ask to be transferred to a supervisor...if the supervisor offers to waive half...ask to speak with their supervisor who will more than likely waive it all since half wasn't satisfactory. Don't give up until you speak to someone with authority to waive the AF.

Second become a member of USAA and sign up for the credit monitoring service. See how your reports look across all 3 bureaus.

Then see if your parents or any family member who has a credit card with Amex, Barclay, BoA, Chase, Citi, Discover, etc that they have had for 5+ years with low UTI...ask them to add you as an auth user. Try to become an auth user on a few cards because that will help with showing more credit for you and their history will help your credit length history.

Refresh your report daily with the USAA credit monitoring. Once your scores jump apply for credit cards with creditors that you are an auth user with and your chances will be good of being approved assuming you don't have any negative stuff in the last 2-3 years reporting.

[LS2982]

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@Anonymous wrote:

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@neverrain wrote:

Hi guys,

I just wanted to ask your advice on my situation and what you think is the best route for my situation.

A brief history - My current FICO is 618 (through this site).  I currently have an Orchard Bank card (unsecured) which I got when my score was around ~550 about a year and a half ago.  My limit on the card is $320 with a $65/annual fee (I think).  I usually just put random reoccurring online charges on it, Netflix, etc and pay it off monthly.  I've never been late, never missed a payment.  The annual fee isn't a big deal to me, the $65 isn't difficult for me to pay.  I'm more interested in the reporting.

I have a second secured Visa through my credit union with a $900 limit.  I use this for larger purchases and pay it off over a couple months when I make larger purchases with it.  Never been late, never missed a payment.  There is no annual charge for this and the interest rate is in the low teens.

I was just approved for a Capital One card with a $500 limit.  Capital One (unitl now) wouldn't approve me.  They offered 0% until next October then it jumps to 22%.  I wouldn't ever be carrying a balance on this card as I would pay this off monthly as well.

My question for you guys - Do you think having a third credit card is detrimental to the recovery of my credit?  Despite negative reviews online, I've never had an issue with the Orchard card, but I did call after making my 12th payment asking for a limit increase, to which I was told that such increases were not given anymore or provided by asking.  Should I dump this card now? Any ideas on keeping all 3?

---

Here is what I recommend call Orchard and tell them you want the AF waived or you will be closing the card, if the first person doesn't budge ask to be transferred to a supervisor...if the supervisor offers to waive half...ask to speak with their supervisor who will more than likely waive it all since half wasn't satisfactory. Don't give up until you speak to someone with authority to waive the AF.

Second become a member of USAA and sign up for the credit monitoring service. See how your reports look across all 3 bureaus.

Then see if your parents or any family member who has a credit card with Amex, Barclay, BoA, Chase, Citi, Discover, etc that they have had for 5+ years with low UTI...ask them to add you as an auth user. Try to become an auth user on a few cards because that will help with showing more credit for you and their history will help your credit length history.

Refresh your report daily with the USAA credit monitoring. Once your scores jump apply for credit cards with creditors that you are an auth user with and your chances will be good of being approved assuming you don't have any negative stuff in the last 2-3 years reporting.

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+1

Solid advice

[neverrain]

The orchard card is actually $79/year.  I think I'll give them a call today or tomorrow, even though it's not due until September.

I was actually looking at USAA for the credit monitoring, but I thought you needed a military family member to get in?  My dad was in the Navy for a while and when I asked him about USAA he had never heard of them lol.  The odds of me getting his social for the application is slim.

Great advice though.  I really appreciate it.

[LS2982]

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@neverrain wrote:

The orchard card is actually $79/year.  I think I'll give them a call today or tomorrow, even though it's not due until September.

I was actually looking at USAA for the credit monitoring, but I thought you needed a military family member to get in?  My dad was in the Navy for a while and when I asked him about USAA he had never heard of them lol.  The odds of me getting his social for the application is slim.

Great advice though.  I really appreciate it.

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Is that your oldest card??? I'd be axing that if not!!

[Anonymous]

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@neverrain wrote:

The orchard card is actually $79/year.  I think I'll give them a call today or tomorrow, even though it's not due until September.

I was actually looking at USAA for the credit monitoring, but I thought you needed a military family member to get in?  My dad was in the Navy for a while and when I asked him about USAA he had never heard of them lol.  The odds of me getting his social for the application is slim.

Great advice though.  I really appreciate it.

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Persistence pays and if talking to no one gets the AF waived then the next thing is to write to the CEO or someone in the executive team expressing your dissatisfaction and considering closing the card due to the AF. More than likely that will get the attention of someone to waive it.

Regarding USAA...I signed up as a limited member about a month ago and opened a checking/savings account plus also signed up for the credit monitoring service. It's only $12.25 a month to monitor all 3 plus I have read that if you call their customer service and let them know that you heard others are paying half of that they will more than likely give you the 50% special price for the first 12 months. Will follow up with that once I call 

[JustMe77]

Orchard wasn't giving CLIs for a while because of the Cap One buyout I think, but I just got one a few weeks ago when I called (from $500 to $600, lol). I would personally dump Orchard, right before your next renewal, because of the AF. Even if you can pay it, it's high for a card with no rewards. I would also get rid of the secured card to get my $$ back. Then, I would just keep the usage of Cap One to under $40/month, to keep utilization low.

I have Orchard (with a $79 AF) and am closing in August before the AF hits again. I would close it now, except I just paid the AF in September and will now hold onto it for another year because I've already paid the stupid AF. Its interest rate is lower than my other current cards, so I'm hanging on to it until then just in case I ever want to carry a balance (rare).