Should I Open a CJ Account To Help My Score If I Have Revolving Credit Already?

[Anonymous]

Ok, as I mentioned in another post, hubby and I just paid off accounts as follows:

As of 9/4/2008

CC's: 1 year old                      

My CapOne $5500 CL - $5499.69 Paid in Full                  

His CapOne $500 CL - $506.23 Paid in Full                   

My BoAMX $1000 CL - $999.35 Paid in Full   

My HSBC $300 CL - $303.16 Paid in Full                       

His HSBC $1705 CL - $1717.35 Paid in Full                    

My Paypal MC $1500 CL - $1456.46 Paid in Full              

His Paypal $500 CL - $369.44 Paid in Full              

My LB $200 CL - $193.18 Paid in Full              

My Care Credit $2000 CL - $354.24 Paid in Full    

CC's: 3+ years old

My HD $1300 CL - $530.11 Paid; Balance 614.02...$307 due 1/09 & rest 05/09 will PIF at those times

His HD $1900 CL - $1341.86 Paid; Balance 583.67...$198 due 1/09 & rest 5/09; PIF same as above

My AMX $500 CL - $499.35 Paid in Full              

His Chev $400 CL - $269.58 Paid in Full      

All good, right? But here's the problem.

1. On the same day I paid, BoA closed my account.

2. When I pulled my report on 9/11, I discovered that Paypal decreased my CL from 1500 to 200. 

We strategically did not pay the HD's in full because we wanted to keep credit util between 1-9 as advised here. And we will not have the money to do so until 01/09 and 05/09 as indicated above (everything was done on a very strict budget so the funds are not there).

Dilemma at hand Now:

In an effort to keep util between 1-9, Should we both open a Crown Jewelers account?...is this wise considering all of the CC's we currently have? I'm not sure if CJ is help for those that have little to no revolving credit or anyone who fits the bill regardless of how many lines of credit. Please help!!!      

[Anonymous]

IMO, don't open it.

It is going to decrease your average age of accounts.

It only reports to TU and EX.

After 6 months it will go from a $2500 CL to a $500 CL or a CL equal to your purchases, whichever is greater.

[Anonymous]

But sidewinder, isn't our util going to suffer which is where our prime point increase comes from? We just need our score to increase so we can get home loan by 01/09, less than the 6 months they (CJ) will be reporting the high CL so by the time its dropped, we'll have paid the HD's AND gotten the home loan hopefully....I'm just asking to be sure of what you're saying.

[Anonymous]

What is your current util?

Total Balances/Total CL

A CJ card would only help on TU and EX, not EQ.

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reddkaandy wrote:

But sidewinder, isn't our util going to suffer which is where our prime point increase comes from? We just need our score to increase so we can get home loan by 01/09, less than the 6 months they (CJ) will be reporting the high CL so by the time its dropped, we'll have paid the HD's AND gotten the home loan hopefully....I'm just asking to be sure of what you're saying.

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[Anonymous]

I listed my total util in the original post...I'm not sure what that equates to percentage wise considering some CC's are listed as AU accounts on my CR and the new formula. But we currently only have balances on HD's as indicated above.

But here goes:

As of 9/4/2008

CC's 1 year old:

My CapOne $5500 CL - $0 Balance                  

His CapOne $500 CL - $0 Balance                  

My BoAMX $1000 CL - $0 Balance   CLOSED ON 9/4 (go figure)               

My HSBC $300 CL - $0 Balance                  

His HSBC $1705 CL - $0 Balance                  

My Paypal MC $200 CL - $0 Balance    WAS $1500 CL; $200 as of 9/4 (go figure)           

His Paypal $500 CL - $0 Balance                  

My LB $200 CL - $0 Balance                  

My Care Credit $2000 CL - $0 Balance                  

CC's: 3+ years old

My HD $1300 CL - $530.11 Paid; Balance 614.02...$307 due 1/09 & rest 05/09 will PIF at those times

His HD $1900 CL - $1341.86 Paid; Balance 583.67...$198 due 1/09 & rest 5/09; PIF same as above

My AMX $500 CL - $0 Balance                  

His Chev $400 CL - $0 Balance                  

Old CL Total: $17305                Util Allowance: 1557.45

New CL Total (minus BoAMX and 1300 decrease on Paypal): $15005       Util Allowance: 1350.45

Currently using 1197.69 but once other charges for using cc's to pay bills (to keep activity) shows I don't want to be right at or over 9% util. I want to maximize my score by keeping well under 9%. Do you see what I mean?

Message Edited by reddkaandy on 09-14-2008 12:31 PM

[Anonymous]

would advise NOT to get the CJ card-

I recently had to pay my HD card off early (kinda stinks not taking full advantage of the 0% offer) but I want to tweak my scores up .

You may want to consider the same.

[Anonymous]

I certainly would pay off HD early if I could...but as stated above funds depleted for CC payoffs until 01/09 and with taxes I'll be able to again well before next due date of 05/09. This is why I am thinking to open CJ..no cred chk and I up my util creating a better ability to pay bills, etc. in order to show activity and stay within 9%. Please someone explain to me why this is/is not a good idea considering all the info! Any  more specific insight is very much appreciated.

[Anonymous]

All open accounts(AU or not) count in util.

Add up all your balances and divide by your total CL(all your CL added together).

If you are saying that you need to add more available credit to keep your util down because you are going to be increasing those $0 balances, then that would be a choice you must make.

If this is the case, are you going to pay the balances back down to $0 before app'ing for a mortgage? If so, then that is all that matters.

Your score between now and when you app isn't a big deal, it is your score when you app that is important.

[Anonymous]

If you are saying that you need to add more available credit to keep your util down because you are going to be increasing those $0 balances, then that would be a choice you must make.

Precisely sidewinder, I will be using my cc's to pay small bills that I would normally use cash for just to keep the activity going and to keep up good paymnt history (PIF at end of month or 2x a month or whatever is best ...haven't gotten that strategy down yet...need to read up on it some more). As far as this being a choice I have to make..........this is what I'm trying to find out: pros and cons so I CAN make an informed decision. I want to maximize this opportunity you know what I'm saying?

If this is the case, are you going to pay the balances back down to $0 before app'ing for a mortgage? If so, then that is all that matters.

As stated above, balances will be paid each month accordingly, so yes before applying for mortgage, balances should be $0 or really low (depending on how CR update falls with app). 

Your score between now and when you app isn't a big deal, it is your score when you app that is important.

But if I should be rebuilidng the score...don't the decisions I make between time affect that moment when I apply?

[Anonymous]

IMHO, you shouldn't open a CJ account and lower your average age of accounts and seek new credit so close to seeking a mortgage. And, as other posters already pointed out, it'll only be counted on 2 of 3 CRs, and I think that it's going to hurt you.

Doing the quick math, your utilization is at 6% and your husbands is at 11%. Combined, you both have utilization of 8% (7.92% actual). My suggestion would be to buckle down, dig deep, and pull out $100 to get your DH under 10%, and then garden the credit that you have.

If you PIF your recurring bills that you normally pay in cash, before the statement hits, then you'll stay below 9% UTI reporting. More importantly, you won't take a hit for (more) new credit and AAOA declining. Let your current accounts age and stay PIF'd.

Edited because I transposed some numbers-- 7.29% vs. 7.92% (correct)

Message Edited by LilMirth on 09-14-2008 05:01 PM