Announcement

Collapse
No announcement yet.

credit card dilemmna

Collapse

Unconfigured Ad Widget

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

    credit card dilemmna


    background: a few year ago (about 4yrs) I filed for CH7 bankruptcy and was approved. I found this board and got a capital one credit card. I made the payments on time and kept it under 10%. Over time, they kept increasing my limit until it reached 10k. during this time, i carried a balance as low as $40 and as high as $2500. During this time i applied and received a 2nd Capitalone credit card. The initial balance started off at $3k but was recently increased to $6k. I took a autoloan out with capitalone and been making payments without no issues for the past 4 months. I've paid off the the $10k limit credit card to $40 and the $6k credit card to under $900 with the plan to pay it off this saturday. Against this backdrop I notice my credit score went from 684 to 684. My questions are: 1. Is there anything I can do to increase my credit score? 2. is it a good idea to keep 2 credit cards from the same bank? 3. Is there any card I should consider applying for and or getting rid of one my my credit cards 4. My credit used percentage is at 36% as of Dec but my current balance is less than $1k. 4. Any suggestion on a better way to manage my current credit cards better?

    #2
    Originally posted by mbrazil05 View Post
    1. Is there anything I can do to increase my credit score?
    I would think that you would be in the low 700s with those balances. I'm pretty sure that the issue is your recent automobile installment loan. Since it's only 4 months old, your balance is > 50% and it is pulling you from the low 700s down into the upper 600s. Your score will improve a 6 months, 12 months, 2 years as the automobile (installment) loan is paid down.

    Originally posted by mbrazil05 View Post
    2. is it a good idea to keep 2 credit cards from the same bank?
    It's fine. The only issue is that many creditors have a "maximum" exposure, so you'll never be able to get your limits above a certain amount (because they add them all together to determine the exposure).

    Originally posted by mbrazil05 View Post
    3. Is there any card I should consider applying for and or getting rid of one my my credit cards 4. My credit used percentage is at 36% as of Dec but my current balance is less than $1k.
    Do not close your existing accounts! Your average age of accounts (AAA) is important to your score. If your credit used percentage drops below 9%, you should see a bump in score (with no other factors considered) of 20+ points.

    Originally posted by mbrazil05 View Post
    4. Any suggestion on a better way to manage my current credit cards better?
    No. just keep paying them. Having one or two high limit cards is what the high-score folks have. From what I've read, high scorers never have more than 4 cards, and certainly no more than 2 with balances reporting (and the balances are typically less than 9%).

    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog


    I am not an attorney. Any advice provided is not legal advice.

    Comment

    Unconfigured Ad Widget

    Collapse
    Working...
    X