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
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. http://www.creditsense.com
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.
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.
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.