I'd like some tips on the cards I have and how to manage them, as well as whether I should close some of the accounts or keep them open. Here's my roster. First Open Account: Iowa Community Credit Union Visa Classic 11.89% Interest Rate, 25 day grace period Balance as of NOW: $96 $300 credit limit Opened: July 2000 (07/00) Should I carry a balance for a while on this card, or pay off at once. I asked the bank about getting a credit limit and they said I would have to apply for one and they would check my credit and the whole ball of wax. I really think that is trash, because major issuers like Cap. One, etc raise it according to account activity, etc. Second Open Account: Capital One Student Visa $500 credit limit 14.77% Interest Rate (Just Reduced 7/01), 25 day grace period Balance as of NOW: $0 Opened: September 2000 (09/00) I was thinking of making small charges on this card ($40-$50 monthly) just for the gas in my car. Is this a good approach, and plus, it would allow me to pay the balance in full, but if I can't pay it off, to carry a balance that isn't outrageous. Third Open Account: Target Credit Card (Retailers National Bank) $300 credit limit 21.9% Interest Rate, 25 Day Grace Period Balance as of NOW: $0 Opened: June 2001 (06/01) I only charged like $4 to this card at the Starbucks in our SuperTarget so far. I really don't use it a lot, and have considered canceling it, because I have read lots of places that having that "perfect" mix won't raise your score much, if at all. Am I right? Otherwise, should I just charge small amounts every few months, as I don't use the card very often. Fourth Open Account: Chase Platinum MasterCard $8500 credit limit 2.99% Interest Rate until January 2002, 14.24% thereafter, 25 day grace period Balance as of NOW: $268 Opened: July 2001 (07/01) I charged some car repairs on this card, and am going to pay the balance down over 3 months, as the interest will only cost me like $2 or $3 at most. I plan on using this card for emergencies as well as major purchases, due to the high credit limit on the card. Fifth Open Account: Bank of America Platinum Visa Card $6000 credit limit 19.8% interest rate, 25 day grace period Balance as of NOW: $12 Opened: July 2001 (07/01) I only charge things like snacks, etc to this card. I think the interest is very high for a platinum card, and have considered cancelling the card. I called and spoke with BofA and they told me to call back in 6 months to see what they could do for me. Any advice on this card. Which accounts should stay open, which ones closed? Also, I have a load of inquiries on my Equifax credit report and have disputed quite a few of them with the local office. I was told I have to contact the creditor directly, and I have done so with most of them. I usually get letters back from them requesting I take it up with the Bureau! It's a contradiction! As for TransUnion, I have like 9 or 10 inquiries on it. I have tried to dispute them and TransUnion says they don't have to have my authorization, only a "permissible purpose!" What should I do with them? Get a professional or what? Any and all advice appreciated, because I want things to be kept in tip top shape. Thanks!
As far as I see you are in tip-top shape already. I would keep all accounts. Give it some time and let your credit mature. Maybe you can apply for a citibank aadvantage card. A lot of people seem to be getting them lately.
I would exercise the Chase card. 2.9% APR is a great interest, take advantage of it. If you do not feel comfortable investing your credit, put it into a money market account. Borrow $7,000 and make payments of $700 for the first 4 months, then pay the balance in January. Once you have done that, let the account sit idle till the next offer or line increase. It will come. www.creditsense.com
Even though a good mix may not do anything spectacular to your credit, I would suggest keeping the Target card. Some companies do look positively at your history if you have some retail/department store credit cards. Since you don't use it that often it can only help you and not hurt you in the future. Use is occasionally and pay it off the next month and you will be fine. ---> Zaphod ;')
In regards to the credit bureaus and my excessive inquiries with TransUnion and Equifax, what would be the best approach?
Iwould close Target and probably Capital one also. Regarding Bank of America, check if your card comes with the 8.9% balance transfer for the life of the bal transfer, if it does just use the card for balances transfer only.
SUPPOSEDLY...3-4 VISA/MC/AMEX/DISCOVER, 1 INSTALLMENT LOAN, AND 1 STORE CARD, LIKE JC PENNEYS/MERVYNS/SEARS... Only F.I.C.O. knows for sure...AND THEY WON'T TELL!!!
PAY ON TIME. If you spend a lot, you MUST have a high enough credit line so it does not look like your percents are too high...
My father has perfect credit and has closed a number of his cards, it seems to have really hurt him. My mother also has perfect credit, she has not closed many of hers. She gets better offers. If they both apply for the same card, as individuals, her credit line is atleast twice as high. Sometimes my mother gets a card with a good balance transfer and my father get a note saying sufficiently obligated. She carries higher balances. They share the same funds but most of their credit is separate. I do not know their scores. The only real difference is the number of accounts each has closed. I would not close any, I would carry a larger balance every once in awhile for a couple of months on a different card.
So what should I do, just stay where I am and apply for another prime card in 6 months or so, or just keep what I have and get the best deals I can.
I would say Citibank AAdvantage. Then you will have more credit than you need, and can play the games we play to get better interest rates. Of course, if you are student, can you afford to have $10-15K in credit? Be careful, don't fall into the traps that brought many of us here..
That is very true. I'm careful with the cards. I wouldn't even consider charging $500, even $1000 to my card. It would drive me up the wall to have that much debt. Only if an emergency arised, would I do such a thing.
