First thanks to all who have given me advice, support and encouragement since I became a member of MyFico.
Within the last three months I decided to act on the analysis I received on my credit reports. I did not have any active CC’s. My oldest CC account on my reports is over 40 years old. I have lived without CC’s for the past 12 years or so. I made the mistakes that many do and over extended myself in the late 90’s. I have learned from past mistakes and have cleaned up my reports as best I could. Only some minor things are left such as getting them all to report the same address and not strange variations and two auto loans showing open that are closed when they were paid off years ago never late. These should be minor issues and hopefully the CRA’s will get it done soon.
This is what I am asking your opinions and suggestions on:
I have obtained the CC’s that I am interested in and will use. I started out with Open Sky-Capital Bank for $ 500 in February. I have requested this account be closed. I have open now the following accounts with CL’s that I am ok with. I don’t need any additional cards or CLI’s (meaning I won’t request one, auto CLI’s are fine).
BMW Visa (u/k CL new card in mail)
DCU Visa 5k
USAA MC and Visa (Visa secured MC is not secured) 6k MC and 1k Visa
PenFed Promise 1k
Nordstrom Store Card 6k
Overstock Store Card 12k
Victorias Secret $ 750
I have a Barclays Ring app in since 4/4 with no approval or denial. Have sent verification info at their request to two different departments and tracked it. 1 inquiry and 1 Visa was showing on TU when I applied no lates, no collections so I don’t know what the issue is.
My intention was to get a mix of cards from CU’s; Banks and Stores to go along with the Auto installment loans. If Barclay comes thru it would give me the bank component. I don’t want every CL tied into any one type of entity in case of AA’s for whatever reasons they may come up with. I think CU’s may be least likely to do this unless something drastic occurs but I could be wrong.
I don’t need any other cards but my issue is how to manage the cards that I have so that my credit scores increase over time. As you can imagine I have taken a dive due to the number of cards opened in a short length of time. Scores at all three CRA’s were EX 806 now 740; TU 814 and EQ 705 (I’m sure they are lower too, I don’t know the updated scores on TU and EQ yet.
My strategy so far has been to pay the charges on each card in full immediately right after the charge. Some will let me do it and others will not until the charges post. I do not carry or plan to carry any balances on any cards.
Is this in your opinion the best way to manage these cards or should I let a statement cut before I pay? They are all reporting 0 balances even though I have ran a couple hundred dollars thru several of the Visa cards for stuff I normally pay cash for. I just charge a small purchase to the store cards and pay it immediately or when it lets me. A lot of cards say you cannot make a payment exceeding the balance which is usually 0 at the time.
Should I rotate the Visa card purchases so there is activity on each card every couple of months or put a charge on each card monthly and of course pay it off right away.
Please give me your thoughts on how to best manage these cards to obtain maximum scores on my CR’s over time. I know I’m having to play catch up score wise with so many new accounts.