I actually beg to differ. a higher score does yield a good mortgage... but also can give a great line of credit, car loan, or more prime cards (not subprime slime cards with crud terms and limits). look objectively at the cards on this list!!! Chase is solid BA is solid Target is 1 dept store card Cap1 gives longevity Iowa community gives longevity. Irrespective of the score issue, the rest of the cards on this list suck and should be removed for their own reasons. DMB sucks. enough said. dump it. Nextcard unfortunately sucks too now. dump it so it can be replaced with a better card. Cedar Falls no point in keeping with such a low limit. CLEARLY this person's fico has bumped prime as evidenced by the BA and Chase. So, by clearing the way of the junk, better prime cards can be added as needed. Plus, the goal stated here was less credit. It may not be our goal, but it is this person's goal and I respect that. Fewer cards with good rates and decent limits are reasonable. As for using cards for emergencies, I certainly agree cards can be a good buffer. course, saving money can accomplish the same thing too But that'd be on another board.
Thank you for your support. That is exactly what I want to do. I just don't want the hassle of having so many cards and fumbling with all the statements. Plus, I figure over time with the Platinum cards, I will get regular line increases that will supplement me plenty well for my financial needs.
In terms of credit building, how can a credit card benefit you if you just tape it away in a drawer and don't use it? Wouldn't it be better to charge smaller things on it to show at least some activity?
yes, if you want to gain account aging there has to be activity. After 24 mos of activity you're getting lots of fico points off the card. Target is specific with account activity. Increases at intervals per months (of activity). No activity, no aging. and yes, a payment is activity on the card. So, until 2 years into it, it's good to use them. Another reason for less cards In the past I've used 9 cards minimally at least every month. Ugh. pain in the wallet. I don't even carry all at once I use one card for gas for one car, one card for gas for my other car, one card at Kroger. I buy staples at Target (and on the same day I pay my bill there). Well, you get the idea. I've been told by a realiable source that after 36 mos you've maxed (points) from an account. At that point you could use it several times a year to keep it active, but you wouldn't really need to use it all the time. (you could "put a card in a drawer" after a year min but better to wait til 24-36 mos). You want the aging at first. Regarding increases in credit, they like to see activity. Your BA and Chase limits are decent. They'll increase with time and you can always request increases. Occasionally I leave balances for a month or 2 and that also seems to trigger line increases. Clearly your scores have gone prime, so relax and enjoy the good cards you now have :_)
Everything sounds great. I appreciate all your help Marie, you seem extremely intelligent in the credit sector. How could I go about getting the interest rate reduced on the Bank Of America Platinum Visa? It's currently at 19.99%. I have only had it for about 3 weeks, and I'm guessing this isn't long enough.
ask. tell them you're thinking of making a large purchase...etc If you get a no.. wait several mos, use the card, try again. If cust service says no, then say "I'm thinking about cancelling the card"... when they ask why, say APR. see what they'll do for you. Persistence is the key here. I used to bug Cap1 every month or 2.
What are some good tactics for both raising your credit limit and/or lowering the interest rate right off the bat on your credit card? Could I reference the Chase Platinum and the good rate I have with them, or would that be a mistake?
Creditors usually increase limits on active accounts - if the card is frozen in ice, don't count on it. Chase, B of A, and Next all like to offer bal xfers at low rates - sometimes coupled with limit increases to entice you to move business their way. I know the "books" all say to close unneeded credit, but it really does depend on your income. If the bureau is reporting a low balance (that would be paid off in 10 months or less if you paid the minimum payment) then the mortgage underwriting software automatically DOESN'T count that as a debt in the ratio calculations. I've got over $150k in available unused revolving credit, and it hasn't been an issue with a first mortgage, refinance, or home equity line applications. Just keep building it up- but I think I also agree with everyone else about doing business with "good" banks - dump DMB and the NextCard. Good luck, mj
You probably stand a better chance of getting the APR lowered right away rather than waiting one or two months. Then they will say they want to see some history before considering it. If you ask right away, they may think that you will close the account before you've used it. One of the most effective ways to get CL increases is to say you want to do a balance transfer but the CL is insufficient. Another is to run up a substantial balance and pay it down in large payments, for example, charge 6K and pay it off over 4-6 months. This shows that you can handle credit responsibly. When you are about to finish paying off the balance, they will increase the line. Most companies will consider CL increases after 6-12 months of good activity. Avoid making just minimum payments. That can be interpreted as a sign of financial distress.
How much do you think I could get the apr lowered right off the bat? A few points? 5? 6? Should I just say I got another card with "blah blah" rate and I am considering canceling the card I have w/ Bank of America, unless they can lower my interest rate.
Matty-- BofA looks good on a credit report. Just put on your best poker face and try to extract concessions without going too far such as threatening to close the account. One thing you could say is that your card usage is affected by the interest rate and that with a better rate, you would be more likely to carry a balance resulting in more profit to the bank. You might tell them about lower rates on other cards you have, that you are a bit disappointed at the assigned rate but always heard good things about Bof A's reputation for service. It's perfectly ok to manipulate them with kindness. Be cheerful and upbeat when you call. If that doesn't work, ask for a promotional rate for a limited time on balance transfers and/or purchases. At the end of the promotional period, negotatiate for a lower go-to rate in lieu of transferring the balance to another card. In short, let them know you have leverage and they need to compete for your business. I think you can accomplish this without threatening to walk. If at any time during the call, you get the feeling that the rep. is not going to be helpful, just hang up and call again. Make the same pitch to another rep. If account notes were generated from the first call, just say you got disconnected and are calling back. I've never had a credit card with BofA but others have told me that dealing with them on APRs isn't easy so good luck.
Darn, I wish it was easier, but your advice sounds good! I'll try that and see how it works. I would think that would convince them.
"USE IT OR LOSE IT" A BANKER FRIEND OF MINE HAD A BA, SINCE 1967, WHEN IT WAS BANK-AMERICARD, WELL THEY JUST ASSESSED HIM AN "INACTIVITY FEE" OF $50.00, WHEN HE CALLED TO COMPLAIN, THEY JUST CANCELLED IT, HE WAS UPSET BECAUSE IT WAS HIS FIRST CREDIT CARD, AND IT SAID 1967 ON IT, THEY WOULD NOT RE-INSTATE IT, TOLD HIM TO RE-APPLY!!!!!!!!!!!!!
Was there information in the account agreement that told him there would be such a fee for inactivity?
Damn! I tried to call them using the advice of how I'd use the card more often and blah blah blah. The lady told me they couldn't do anything at this point in time, and went on to tell me the company could offer me more services, etc. She said if you have like a savings and checking acccount with them, you would likely get more leverage w/ your accounts.
Matty- the only negative with B of A is that the reps are pretty much limited to what the computer offers. It's all based on their internal profitability score. It's all in the timing- if you call when the computer thinks you'll bring in more money, you're in. Try every 3 months or so. Good luck- mj
