When to close the First Premier card? (don't want the fees...)

[moneytree]

As you all know, First Premier drives a hard bargain. We were wanting to buy a house, and to boost my husband's scores, we agreed to a $180 initial fee cc in his name. This was 6+ mos. ago. We have our house now.

He has an Orchard Bank card which went from a $200 secured bal. to a 'congrats' we'll give you $300 & make it unsecured. That's all we need, because I also have a secured Orchard (lol--they don't like me as well because I have a WAMU card 'low' bal. which was maxed out---but paying that off soon).

Are we better off in keeping his Premier Card, so he has at least 2 tradelines in his name, and paying their $7/mo. fee? I pay them thru our bank, so I avoid their extra $7/mo. pymt fee to make online w/ them. I am trying to be thrifty and why throw $7 out the window each month. If you really think the First Premier acct. will boost his score, then we'll keep it. But if you think Orchard Bank is enough, then we'll continue to use that and pay it off in full each month.

I also have a Best Buy (almost pd off...low bal), furniture card ($2900 avail, & won't be using), and a paid off Gateway acct.

We did get a Dell computer approval letter last year for my husband, but we never followed up with it. We need to check into that.

Time to order his free credit reports! I love WAMU because I can view my score anytime for free. I just recently cancelled our fico subscriptions. That access was very helpful in feeling in control of our finances.

thanks for your help!

[magyar123]

Dump First Premier - once you pay off the balance/just before they'll hit you again with their annual fee.

[Never_Again]

I am trying to be thrifty and why throw $7 out the window each month

...But yet you are willing to do just that in an effort to "build your credit?"

Honestly, the amount of effort you are putting into raising your score might be better spent accumulating a down payment! With a bankruptcy on your credit report, banks will look at a 20% to 40% down payment as much better than a 700 score. Do you know how many 700 scores have dropped like rocks lately? Many! And, the bank has no security with that high score (or no real dollar security, just a profile and a hope that you are more likely to pay.)

With a good down payment, they have dollar security. And, find a bank (probably a local one, with local underwriters) that will do manual underwriting, and you can use a year or two of paid rental receipts, with a good down payment, good income history, good debt ratios (25% housing), and evidence of paid utilities, and you will have a better shot.

I just recently cancelled our fico subscriptions. That access was very helpful in feeling in control of our finances.

Again, with all due respect, (I am not trying to give you a hard time here, just to help you think it through ) the FICO score really doesn't tell you much about your finances, just your credit. The two are quite different. To me, your finances includes income and expenses, and how much is left over each month. It probably takes a look at net worth as well. A FICO score does not factor any of this. It factors how much credit you have available, how much you are using, how long you have had it, and if you pay on time. There are a pile of people out there running around with 700 plus scores who are living paycheck to paycheck.

Just all food for thought...

[moneytree]

huh? we already OWN our house... lol

I]We were wanting to buy a house, and to boost my husband's scores, we agreed to a $180 initial fee cc in his name. This was 6+ mos. ago. We have our house now. [/I]

I was mainly asking if I should ditch First Premier. We will soon, due to their fees. I guess I could say, it did positively impact my husband's score when getting our home mortgage.

So as I said, we have our house now. We actually had no problem qualifying. We have a FHA loan, no PMI, no points, zero down, etc etc...and closed last month. My husband's TWO YEAR bk discharge anniv. date isn't until Feb. The loan program is the USDA Rural Home Development program. It is WONDERFUL. See my other posts regarding this under the mortgage after BK section.

;)

[StartingOver08]

Get rid of First Premier pronto.

The subprime cards do not help you. You were lucky that they helped you in the short run to obtain your house. Subprime cards beget more subprime cards - so stop that chain before it gets started.

Your ontime FHA payments will do much more than First Premier ever could. If you are looking to get started down the credit road again....be careful. As Never_Again notes, its better to manage your debt, then your credit score. And it sounds like you are well on your way to good management because you are asking the right questions in the right place.

Congratulations on your house!

[relief13035]

Just the thought of having another credit card scares me.

[BassBoy]

Just the thought of having another credit card scares me.

Yes, it can be scary, but ya know something, going through BK makes you so much wiser about it. What you would once buy with a CC without thinking about it, you now think about. You'll be asking yourelf, "Do I REALLY need this?" Even if you really do need it, you'll still stop and ask yourself if using your CC is wise. You'll leave the store, and even though whatever it was that you needed is still on your mind, you'll refuse to use the CC to buy it. You'll find a way to pay cash for it. And I've gotta tell ya, that's a very rewarding feeling. And not only because you were able to resist from pulling out the plastic, but you also learned to manage your money so you could have whatever it was. It's takes some strong will power to never fall back into the credit trap.

[Stilltheone]

We got one and dumped it as soon as we saw the "fees", right after we got it in the mail.

I would NEVER pay that much for a CC...especially when we already had Orchard Banks.

[BassBoy]

I would NEVER pay that much for a CC...especially when we already had Orchard Banks.

I couldn't agree more. If anyone is able to be approved for the no fee or low fee (i.e., $39/yr.), then I would avoid the high fee cards.