Right now I have two credit cards. One a Providian, 24% rate, $250 cl, no lates with a $200 balance but no annual fee. The second is a Bank of Marin, 18% rate, $350 cl, $340 balance, no lates and a $59 (or is it $89? I'll have to check) annual fee. Providian will be 2 years old in August and Marin will be 2 years old in May. My hope is to get them both paid down quite a bit and transfer the balances to a better card (lower rate, no annual fee, a chance to progress to better cards as my score improves) around September. Is this the best step or should I keep them a little longer? Is there a particular card I should be looking towards? A particular score to get a better rate? I am very disappointed in Providian. When I signed up for the card, they told me I would be receiving regular cl increases with prompt payments. Even when I kept the balance down there was no increase ever. Also along the way they sent me a letter saying due to my current CR they were raising my rate from 18% to 24%. Not based on their records of my prompt payments but on my other credit? Marin isn't so bad other than the annual fee and the fact that they charge $5.95 to make internet payments. So with 6 months or so until my goal of doing this I want to have a game plan. Any thoughts would be appreciated.
Because your credit history is limited, I would keep them open even after they are paid off or the balances are transferred to a better card. But the one with the annual fee, ehh, I would consider closing it because of that, especially if you do not plan to use it.
I agree with Queen Bee, but also, from what I've learned from here, when a cc hits the 2 yr mark, you get a jump in FICO. So, I would definitely wait until after the 2 yr mark before closing it.
I had heard the same about the two year mark. That was my hope was to have the card mostly paid down by May when it turns two and then pay down as much of the AF before I transfer it to the new card. Any cards better than others?
Ok, look at my scores in my tag line, so please don't take this as an insult! But, until your scores come up quite a bit, I wouldn't close anything. You are still in sub-prime area, and they are getting harder to come by, and there are an influx of $300 cards that have $278 in fees to start. I haven't even begun to try and improve my cc lines because of my scores, so someone more knowledgable might can give you some benchmarks where you will need to be + what kind of stuff is tolerable on your report to get the better offers.
Thanks jlynn... no insult taken. That is exactly what I am hoping for.... insight as to what I am working towards over the next 6 months.
