Three New Cards since 3/24/18 - Should I add more?

[WolfChild1]

Yes the Credit One does have an annual fee of 39. I haven’t received the card, but wasn’t thrilled when I called and the CL was only 500 when the initial offer said 1500.

[Anonymous]

I'd shake off that Credit One account like a case of the fleas if I were you.  They're a predatory lender that probably gets the most negative talk on this forum from what I've read.  I can understand someone getting suckered into applying for a Credit One account if they have absolutely no revolvers and are just starting out, although there are better options (Cap One, Discover), but you're in a place where you've already got a couple of better cards like Amex.  You literally have zero use for Credit One.  Just my opinion.

[AppHappyTog]

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@WolfChild1 wrote:
Oh shoot. Will the three new CLs negatively impact score when they report? Also when they report do they do so with the current real time balance or do I have until the next statement? I was thinking they would improve scores but sounds like it may take 6 mos. appreciate your time!

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Quite possibly they will. Those new accounts will effect your AAoA and your AoYA. Hard for us to say what will happen when they do show up but the general consensus is to expect a ding and just consider yourself lucky if you don’t get one since it depends so much on your credit profile.

Pay down existing balances on accounts as others have said and leave a small balance to report on one- under 8.9%, my sweet spot is 5% but it varies for everyone. 

Check your new accounts for statement dates and expect that they will likely report within days off that statement cutting so make sure you’re ontop of those balances. 

And no more cards. You’re fine with the amount you have as far as credit profile and if you let the age a bit you should be golden. 

[WolfChild1]

Thanks. You all have been so kind so many posts it’s incredible....great resource...I’ll follow the advice and get rid of the Credit One and also pay off the two new cards....and ”garden”. I may put off the car lease for a few months as well.

[jamie123]

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@WolfChild1 wrote:
Thanks. You all have been so kind so many posts it’s incredible....great resource...I’ll follow the advice and get rid of the Credit One and also pay off the two new cards....and ”garden”. I may put off the car lease for a few months as well.

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The payment technique that the other posters have recommended is referred to as the AZEO method around here. It is short for ALL ZERO EXCEPT ONE and refers to credit cards and their balances. It is how you can groom your scores to be as high as they can possibly be considering your credit profile. It is one of the only things that we can actively control when it comes to our credit scores. You only need to use the AZEO method if you want to see how high you can get your scores or you plan on applying for new credit in the near future and need your scores as high as possible.

And yes, ditch the Credit One card. You should stop back in the forums for credit card suggestions before you app for anymore credit cards. You really only want to have credit cards from the so called prime lenders which are:

AMEX

Bank of America

Citi Bank

Chase

Discover

Wells Fargo (Stay away from these guys.)

You don't really need to add any credit cards for another year but might want to add a couple more after that. Long term it is best to have 5 to 8 well aged credit cards. It makes for a thick credit profile and will keep your scores high and rock solid stable in the future. Make sure to set up automatic minimum monthly payments on all your credit card accounts in the event you forget or something happens, you are assured that at least the minimum payments get made.

Good luck!

[WolfChild1]

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@jamie123 wrote:

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@WolfChild1 wrote:
Thanks. You all have been so kind so many posts it’s incredible....great resource...I’ll follow the advice and get rid of the Credit One and also pay off the two new cards....and ”garden”. I may put off the car lease for a few months as well.

---

The payment technique that the other posters have recommended is referred to as the AZEO method around here. It is short for ALL ZERO EXCEPT ONE and refers to credit cards and their balances. It is how you can groom your scores to be as high as they can possibly be considering your credit profile. It is one of the only things that we can actively control when it comes to our credit scores. You only need to use the AZEO method if you want to see how high you can get your scores or you plan on applying for new credit in the near future and need your scores as high as possible.

And yes, ditch the Credit One card. You should stop back in the forums for credit card suggestions before you app for anymore credit cards. You really only want to have credit cards from the so called prime lenders which are:

AMEX

Bank of America

Citi Bank

Chase

Discover

Wells Fargo (Stay away from these guys.)

You don't really need to add any credit cards for another year but might want to add a couple more after that. Long term it is best to have 5 to 8 well aged credit cards. It makes for a thick credit profile and will keep your scores high and rock solid stable in the future. Make sure to set up automatic minimum monthly payments on all your credit card accounts in the event you forget or something happens, you are assured that at least the minimum payments get made.

Good luck!

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OMG I figured out how to quote.  Thanks Jamie123, I will defininately avoid Wells (negative experience with exisiting car loan) Good idea on the minimum payment auto debit.  My oldest cards are Citi received when I had excellent credit, however they've hurt my feelings big time when taking AA years ago dropping CL to 500 each. Suppose I'm grateful they didn't raise my IR. 

Cheers. Have a great day.

[WolfChild1]

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@Anonymous wrote:

I'd shake off that Credit One account like a case of the fleas if I were you.  They're a predatory lender that probably gets the most negative talk on this forum from what I've read.  I can understand someone getting suckered into applying for a Credit One account if they have absolutely no revolvers and are just starting out, although there are better options (Cap One, Discover), but you're in a place where you've already got a couple of better cards like Amex.  You literally have zero use for Credit One.  Just my opinion.

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Sounds like Credit One is subprime.  Should I keep it if they offer to increase the CL?  Also they had a 715 EX score on the welcome letter which clealy aint true.  Is that weird?  Or do they just use a diff model? None of my EX scores are that high.

[HeavenOhio]

You can add Capital One, the credit unions, and many lesser known banks to the list of "prime" lenders.

Note that most prime lenders offer "subprime" cards for those who need to go that route. But unlike the Credit Ones of the world, those banks aren't predatory.

[Anonymous]

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@WolfChild1

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Sounds like Credit One is subprime.  Should I keep it if they offer to increase the CL?  Also they had a 715 EX score on the welcome letter which clealy aint true.  Is that weird?  Or do they just use a diff model? None of my EX scores are that high.

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No.  They could offer to raise your credit limit to $20,000 and you should still run for the hills.  No doubt the score that they provided you with was drawn up using a different scoring model, hence the reason it's different than what you're used to seeing.

[WolfChild1]

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@HeavenOhio wrote:

You can add Capital One, the credit unions, and many lesser known banks to the list of "prime" lenders.

Note that most prime lenders offer "subprime" cards for those who need to go that route. But unlike the Credit Ones of the world, those banks aren't predatory.

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Now that I think of it, Credit One did solicit my business with an offer of prequal of 1500 CL on email and then welched on the deal and gave me 500. They name it Platinum so you think its a quality card.