creditscore dropping

Discussion in 'Credit Talk' started by Momof3, Apr 30, 2000.

  1. Momof3

    Momof3 Well-Known Member

    Hi all, I am wondering if someone can help.Last year I applied for my first card, got it, platinum card and now i have 2 platinum cards, I also was trying to build up some credit, b/c I had none. Well being so successful with getting credit, I believe I did go a little over board, I had recently applied for an additonal account with my current platinum card and was denied. SO I now have 5 major credit cards and 5 department stores, now I know my score must have been higher when I first applied for credit, and by the way all the dept. cards have 0 balances. So I need to know what to do to get my scores back up, I know I have to close alot of accounts, and what is the best way of closing them? Thanks
  2. creditwork

    creditwork Well-Known Member

    I don't know your situation exactly, but I would close all the department store cards.
    If I was not using my credit for leverage or as a way to have it for emergencies, I would keep only a couple of cards, just enough to be able to move money around to minimize my credit costs.
  3. curiouser

    curiouser Well-Known Member

    If I am reading what you wrote
    correctly, part of the problem may be
    that you applied for another card with
    the same lender. Just to let you know
    what happened with me. I have a
    Platinum card with MBNA ($7000 limit),
    a Classic Card with MBNA ($3000 limit)
    and two signature lines of credit
    ($3000 and $7500). Plus, I have a
    Gateway Computer Account ($3000).
    Also, I have a MBNA Princess Cruise
    line of credit ($4000). I charge about
    $500 a month to the platinum card and
    about $200 a month to the classic
    card, which I pay in full each month.
    Two months ago, I received an
    invitation to apply for an affiliate
    card from my alma mater. It is issued
    by MBNA. I was turned down because
    they felt that I had "sufficient lines
    of credit." Basically, they were
    concerned that they had $27,500 of
    exposure. I did receive a platinum
    card from another lender. So your
    credit score may not have dropped, the
    lender might be limiting exposure.

    As for what cards to close, I concur
    with Herb, close out the department
    store cards. I don't know of any
    department store that doesn't accept
    at least on major credit card. The
    only reason I would keep any
    department store card is if it gives
    you some perk that you aren't getting
    if you use another card. For example,
    the one department store card I keep
    and use is Target. The only reason I
    keep and use that one is that part of
    what I charge goes to my high school
    alma mater.

    When you close the account, make sure
    you do so with a zero balance. Also
    write a letter to the creditor
    requesting that the account be closed
    and that the following notation is
    reported to the CRAs "account closed
    at consumer request." Then cut the
    card up and send the pieces with the
    letter. Send it all certified mail,
    return receipt requested.

    One last thing, lay low for awhile
    before you apply for credit again. You
    don't have to wait two years, but I'd
    go with what Herb has suggested here
    before, six months or so.
  4. Momof3

    Momof3 Well-Known Member

    Thanks, the bank was citbank, i have platinum card from them and saw they had some kind of online card, so I tried it. But just getting worried I might have too much credit so to speak. thanks again I will close most of my department store card asap.
  5. Jim

    Jim Well-Known Member

    From what I have read about credit scoring, I believe having one department credit card actually raises your score. Having more than five credit cards (in some cases three), on the other hand, lowers your score. I'd keep the one department card that offers the widest selection of goods, most store locations, best interest rate, etc., and close the others.

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