Need Advice from everyone and

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

  1. Momof3

    Momof3 Well-Known Member

    Well you all know I am attempting to buy a house next summer and want to help my scores rise. I have been recently declined for sear credit increase, which make me think my scores aren't great. Now I know my main problem is way too much credit so how often should I close accounts, one every month, every 2 months??
    My cards
    Aria 5K want to keep
    Citibank 1K want to keep
    Fidelity 500 , think I dump
    Associates 475. dump it
    JCPenney 300 ??
    Sear 250 ??
    Target 300 dump
    Lowes 300. dump
    Exxon 275, ??
    Speigel 825, dump never used it anyway

    Now I know way too mnay right?, which should I lose and how often should I close and if I close a good amount , by next summer should my score improve, I also want tp pay down the balances on all I am keeping.

    Thanks in advance for all your input here:)
  2. JP

    JP Guest

    RE: Need Advice from everyone


    I have a general rule of never having credit cards that are not major ones (i.e. Mastercard, Discover, AMEX or Visa), so with that said dump the JCPenney, Sears, Target, Lowes, Exxon and Speigel. Most cards like that carry 21%+ rates anyway. Next look and Fidelity and Associates, total combined credit line 975, dump them both. Keep the Aria and Citibank and make sure you total balances are less than 50% of the available credit.

    When you close the other accounts, they should have a zero balance. Lastly since you are applying for a mortgage, your hubby's collection should be paid if it is not already done. As for his lines, keep the 3 he has and make sure the balances are less than %50 of the total limits.

    The most important thing for you and him is to stop applying for cards. I know people post stories about getting this card and that card, but that doesn't mean you have to apply for it. In reality for the average person 2-3 trade lines w/ about 5-10K available is sufficient. Use your credit wisely and stop applying for cards.

    Regards and Good Luck,
    Your Friend,
  3. Momof3

    Momof3 Well-Known Member

    Thanks JP, and one more thing

    Should I gradually close these accounts, say one a month, or should I do it sooner or give some time between closings???
  4. miles

    miles Well-Known Member

    RE: Thanks JP, and one more th

    I think you should close no more than 2 at a time with at least 3-4 months between the next closing round. You should definately keep the Aria & Citibank cards. You don't want your report to change drastically at one time. I have heard this would lower your score instead of raising it. Good luck to you mom!
  5. Momof3

    Momof3 Well-Known Member

    RE: Thanks JP, and one more th

    Thanks Miles:)
  6. Doris K.

    Doris K. Well-Known Member

    RE: Need Advice from everyone

    The merchant cards normally carry a higher interest rate, so they tend to weight down credit scores. While I do understand that some of the cards you listed are issued by your favorite stores, keep in mind that those stores accept Visa and Mastercard too.

    The main reason that many people keep the merchant cards is to avoid using up too much of their credit limits on their major credit cards at the places they shop most. However, if you have any high credit limits on your Visa and Mastercard accounts, you shouldn't need them. That depends mostly on how much your Visa and Mastercard credit limits are and how much debt you can handle.

    My gut feeling tells me not to close an account under six months old--I don't know why; it just feels right. I also agree with Miles. Making too many drastic credit changes can raise flags against your credit score.
  7. dave

    dave Well-Known Member

    RE: Need Advice from everyone

    I read that a combination of major credit cards and merchant cards yields a higher FICO score than just major credit cards alone. If this is true, I would keep one or two merchant accounts open. They don't have to have balances.

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