What should I do (re: closing Cap One secured)?

[fixitquick]

Long story short...

I'm in the rebuilding process.  Scores are in the 630-640 range.  In Feb '14, one of my worst derogatory accounts (Amex - oldest CC) is set to fall off my report and I anticipate a big boost to my scores due to utilization increase (chargeoff account that has been skewing the numbers BIG TIME).

Recently opened a Barclay Rewards card with a $2500 limit.  Transferred the balance from my $2200 Cap One secured card (now $0) and will be working to pay off the Barclay balance by the end of Feb.

All credit accounts include:

Barclay Rewards - $2500 (~$2300 balance - will be paid to $0 by end of Feb)

Capital One secured - $2200 ($0 balance)

Kay - $3400 ($0 balance)

Blue Nile - $1500 ($0 balance)

Walmart - $650 ($0 balance)

Express - $500 ($0 balance)

US Bank/Kroger - AU - $7500 ("joint card" with fiance - we carry a balance, but PIF every month - typical reporting balance is in $3500-4500 range)

Should I leave the Capital One open until the Amex falls off?  My thinking is that this will help my utilization and help me secure another unsecured card (hopefully with prime rates), as I expect to be in the 680-700 range based upon the outlook tools on this site.

The alternative would be to close the Capital One and apply the cash ($2151) towards the Barclay card.

Any suggestions would be appreciated

[takeshi74]

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@fixitquick wrote:

I'm in the rebuilding process.  Scores are in the 630-640 range.  In Feb '14, one of my worst derogatory accounts (Amex - oldest CC) is set to fall off my report and I anticipate a big boost to my scores due to utilization increase (chargeoff account that has been skewing the numbers BIG TIME).

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I'm guessing this is a typo.  Increasing utilization does not typically improve one's score and usually has the opposite effect.

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@fixitquick wrote:

Should I leave the Capital One open until the Amex falls off?

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Have you read the closing credit cards sticky?  Immediate impact is to utiliztion.  Accounts in good standing continue to report for 10 years so AAoA won't be immediatly affected.

You have to determine if the cash to pay down Barclay's is worth more than keeping the CO card open.  Try doing the math to compare utilization both ways.  Reducing your Barclay's balance should also help utilization though I can't say which is better off the top of my head.

[coldnmn]

Your Cap1 will still be a positive TL  for 10 years even closed. I guess it's up to you if you need it for utilization in the future.

[fixitquick]

You're right. I should have said DECREASED utilization (increased available credit). 

The chargeoff Amex has a balance of $9300, with an original credit limit of $15,000. 

I had plans to pay this account off entirely by mid-2014, but Amex has recently "lost" the file...but that is another thread alltogether.

[xcallmeclayx]

Im sure someone with more experience has better advice but here is my 2 cents:

I dont like the idea of closing an account if there is no need to. If you are confident that you can pay off the Barclay by Feb. then I would just do that and keep the Cap1 open. Now, closing Cap1 and using that money to pay off the Barclay will help our utilization when its paid off (assuming the only debt on any of the cards is the joint account your have) but that is up to you.

So in Feb. your charge off will fall off and you will pay off Barclays? Sounds like March or April will be a good time to ask for CLI's or apply for a Credit Union credit card lol Good Luck!

[n0smirc]

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@fixitquick wrote:

Long story short...

I'm in the rebuilding process.  Scores are in the 630-640 range.  In Feb '14, one of my worst derogatory accounts (Amex - oldest CC) is set to fall off my report and I anticipate a big boost to my scores due to utilization increase (chargeoff account that has been skewing the numbers BIG TIME).

Recently opened a Barclay Rewards card with a $2500 limit.  Transferred the balance from my $2200 Cap One secured card (now $0) and will be working to pay off the Barclay balance by the end of Feb.

All credit accounts include:

Barclay Rewards - $2500 (~$2300 balance - will be paid to $0 by end of Feb)

Capital One secured - $2200 ($0 balance)

Kay - $3400 ($0 balance)

Blue Nile - $1500 ($0 balance)

Walmart - $650 ($0 balance)

Express - $500 ($0 balance)

US Bank/Kroger - AU - $7500 ("joint card" with fiance - we carry a balance, but PIF every month - typical reporting balance is in $3500-4500 range)

Should I leave the Capital One open until the Amex falls off?  My thinking is that this will help my utilization and help me secure another unsecured card (hopefully with prime rates), as I expect to be in the 680-700 range based upon the outlook tools on this site.

The alternative would be to close the Capital One and apply the cash ($2151) towards the Barclay card.

Any suggestions would be appreciated

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I know everyone is focusing on the Barclay card, but the US Bank is the one that caught my eye. I think some clarification is needed here, is this PIF before or after a statement cuts? (Does it report the balance that you've listed here as your most recent balance) If it is cutting with this high of a balance, by my numbers you look almost maxed out on your cards. When the Amex goes away you'll look lower, but that's a decently high reporting balance every month and will keep you from hitting your potential highest CS since you're wanting to get better cards once Amex goes away.

If you're not letting the statement hit with a balance, then you can just ignore everything I just said.