Rebuild, Utilization, what to keep in my wallet!

[Anonymous]

I started my rebuild about 4 months ago and obtained a Capital One $300 CL, along with Credit One, $700 CL. Both cards have fees, so I will not keep longer than the one year mark. 

I was recently approved for a NCFU cashRewards Visa, $7000 CL, so I don't really "need" these little cards anymore, however....Do I really "need" to cancel them yet? My Credit one has 1.5% gas rewards, so even if I put a tank of gas on each month, that's a savings. (I pay my CC's off completely on the last day of each month). At this point, I'm more inclined to cancel Capital One, as there is no reward and a measly $300 CL. 

As for utilization....mine is pretty high, because I charge everything, then pay it off completely at the end of the month. It's easy for me to be disciplined, so overspending isn't a concern. But.....because of statement dates, my utilization appears very high!  With my NFCU card, I'm taking advantage of the $200 cash bonus they offered last month, by spending $3000 in my first 90 days. We needed a new mattress and some other house things, and I have the cash to pay the bill in it's entirety - so I'm almost to my $3000 in the first month!  But I'm concerned that my utilization is going to negatively affect my score. (My credit one score dropped 41 points today!!! I'm puzzled by that!!)

We are planning to build a house this spring, so I'm preparing myself to apply for a construction loan of $400K with 20% down. I'm so nervous that I'm going to screw this up and ruin our plan of building! Any advice or "what I would do's"?

[Anonymous]

To add, fiance's credit score is 826, but he pays alimony for another 3 years, so we need my income in order to get our construction loan. 

[Anonymous]

Do the math - $50 bucks a month x 12 = $600 x .015 = $9 per year in gas rewards... Unless you're spending $200 + on gas, its just not worth it, IMHO.

[Anonymous]

I plan on canceling it before the next annual charge, regardless. My question regarding that was, what's the advantage to canceling it prior to. 

Otherwise, looking for some insight on the utilization issues, how to proceed with rebuild. 

---

@Anonymous wrote:

Do the math - $50 bucks a month x 12 = $600 x .015 = $9 per year in gas rewards... Unless you're spending $200 + on gas, its just not worth it, IMHO.

---

[Shokk]

I wouldn't cancel Cap One.  They're pretty generous with CLIs.  I just had one go from $1000 to 2500 without requesting.  It started out with a $500 CL.  6 months later I called the EO to ask for an increase. (It wouldn't let me online.) They doubled to $1000 and switched it over to a Quicksilver.  Same with another card that used to be something else that Cap One bought out.  So yeah, I like Cap One.  I'd keep it.

[Anonymous]

No advantage one way or the other that I can see. As long as its cancelled before the fee hits.

UTI% management is really not a concern DURING rebuilding. As long as you don't charge up more than you can pay off in one or two months time, you can manage UTI down to any percentage you want, at any time you want - it just takes some planning.

Rebuilding is about re-establishing PAYMENT HISTORY. Balance management is something you do AFTER the rebuild is well established, usually in anticipation of apping for a mortgage or auto loan.

[Anonymous]

---

@Shokk wrote:

I wouldn't cancel Cap One.  They're pretty generous with CLIs.  I just had one go from $1000 to 2500 without requesting.  It started out with a $500 CL.  6 months later I called the EO to ask for an increase. (It wouldn't let me online.) They doubled to $1000 and switched it over to a Quicksilver.  Same with another card that used to be something else that Cap One bought out.  So yeah, I like Cap One.  I'd keep it.

---

I just applied for a CLI today. It's nice to hear your positive experience.  If they deny me, I'll probably cancel out of spite! $300 is almost insulting, but that's only because I know I can now be responsible with it, vs 10 years ago when I wrecked my credit. 

[Anonymous]

---

@Anonymous wrote:

No advantage one way or the other that I can see. As long as its cancelled before the fee hits.

UTI% management is really not a concern DURING rebuilding. As long as you don't charge up more than you can pay off in one or two months time, you can manage UTI down to any percentage you want, at any time you want - it just takes some planning.

Rebuilding is about re-establishing PAYMENT HISTORY. Balance management is something you do AFTER the rebuild is well established, usually in anticipation of apping for a mortgage or auto loan.

---

Looks like I'm on my way then. All of my credit habits are healthy, no late payments in the last 3 years, I pay off all revolving credit fully, each month and my DTI is less than 7%. 

I'm just so nervous about applying for the construction loan. If we're denied because of my credit, I'll never forgive myself. 

[Shokk]

They may deny simply because the account is less than 6 months old.  EO rep told me every 6 months is what they allow.

Forgot to add in my last post, I was also able to get them to remove the yearly fee on the one card that had it.  But this is after the account was open for a couple of years.  Even before that, they would always refund the fee amount with simple phone call to the EO.

[Anonymous]

---

@Shokk wrote:

They may deny simply because the account is less than 6 months old.  EO rep told me every 6 months is what they allow.

Forgot to add in my last post, I was also able to get them to remove the yearly fee on the one card that had it.  But this is after the account was open for a couple of years.  Even before that, they would always refund the fee amount with simple phone call to the EO.

---

I figured, as mine is only 4 months old. I may just wait it out. We'll see how moody I'm feeling when I get their denial! LOL