@Anonymous wrote:Hello - by way of background, I have never had a late payment or a derogatory account on my credit. My score has been relatively stagnant around 680 for many years, likely from high revolving credit utilization. I have (19) open and active credit cards with credit limits ranging from $1,300 to $13,000, totaling $75,000 in credit commitment. My oldest trade line dates back to 2008 (age 19), actually four of the nineteen cards are my earlies trade lines from 2008. I more recently have worked through lots of college expense debt and at current have a 15% available debt to outstanding credit ratio spread across 3-4 cards, some at a higher utilization percentage for the sake of 0% transfer options. I had a peer to peer term loan that assisted in paying off much of my revolving debt that just paid off this month, as well as a small auto term loan that has been paid off this month as well. Otherwise, I still have (11) individual student loans in total $35,000 outstanding. Each always paid on-time/current.
I am looking for advice to improve my score, at the same time make the right decisions moving forward; credit management wise. I would like to do some “house cleaning” possibly closing out some older lower limit cards that I don’t care for as the credit limits are low, rates much higher than market today and no rewards to speak of. I have attempted with the companies requesting lower rates and higher limits without luck. It seems being some of the cards are from my early credit establishment days I am stuck in a high risk student credit card program or something. I am told to close and re-apply. I do utilize regularly CapitalOne Quicksivler with 1.5% cash back and CITI Double Cash 2% cash back, each paid in full monthly.
I have thought about another peer to peer loan to wipe out my remaining revolving debt into one term loan and tackle that balance as quickly as possible.
Any advice is greatly appreciated
To improve your scores:
1. Don't close anything unless it comes with an annual fee.
2. Don't apply for any new loans or other credit.
3. Don't follow the advice of ignorant or selfish CSR's telling you to close and reapply.
4. Pay your student loans down but try not to pay them to zero.
5. Keep each card utilization to 29% or less, keep our overall credit card utilization to 9% or less, let most of your cards report a zero balance.
6. If you want to prioritize score improvement then you have to stop chasing 0% APR's; FICO doesn't give you points for saving on interest.
Follow these rules and your scores will go up.
Now if you want to do 'house cleaning' fine, but it doesn't improve your score.
@Anonymous wrote:
@SouthJamaica wrote:To improve your scores:
Keep each card utilization to 29% or less, keep our overall credit card utilization to 9% or less, let most of your cards report a zero balance - Will do!
If you want to prioritize score improvement then you have to stop chasing 0% APR's; FICO doesn't give you points for saving on interest. - Makes sense
Now if you want to do 'house cleaning' fine, but it doesn't improve your score.
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Thanks for your notes! I really was thinking of letting a BestBuy/CapitalOne $1,500 card and an $1,800 Amazon/Schchrony. My thought was I am not utilizing the retailers card and cant use them outside of their stores therefore don't care to have them. But if keeping them is best, I will keep them! And in doing so do I better my position with each CaptailOne and Schnchrony directly for other cards I may have with them?
Any thoughts to get a boost in credit limits? More recently I have been getting some bumps:
CITI Costco +$3,500 from $7,000 to $10,500
Discover +1,700 from $7,300 to $9,000
VictoriaSecret (Comenity) $1,080 to $2,880 to $3,280 - I have no clue what is happening. 2-3 times a year I have spent $250 max and paid off the next month!
It's ok to get rid of cards that aren't doing anything for you, and at some point replace them with stuff you like better. And I especially do not recommend having store cards. But it's got nothing to do with score improvement.