This is NOT my oldest card too.

What happens if I close this Card? Can the history be transferred to another BOA credit card even though this another card (BOA MC) is older than the BOA Amex card?

My utilization will be less even if this BOA amex card is closed.

Please advise.

Thanks

I turned 18 earlier this year, and am trying to start building a credit history as I hear potential employers check it, and it will be important for my first mortgage/auto loan. I have a few questions regarding how I can best build up my history. (And don’t worry, I am well aware of the risks of young people using credit cards. I view cards as method (which is safer than cash or debit cards) to spend the money, and only the money, that I already have in my bank account)

My Current Situation:

- I opened a traditional credit card account (card #1) with one of my banks when I turned 18 (limit below $500). I charge about $600-700/month to this account every month, paying off the card completely at the end of every week. Requested and recieved 50% credit line increase after 6 months.

- I opened a traditional credit card account (card #2) with another one of my banks when I turned 18 (limit below $500).  I charge a few dollars once a month to keep the account active, and PIF every month. Requested and recieved 50% credit line increase after 6 months.

-This month, I was accepted for a charge card account, which I am very excited for.

My Goals: I want to have the best score possible when I graduate from college in four years. I don’t care about my credit scores before then, I want to maximize them in the long run.

My Questions: Sorry if this is already covered somewhere, if it is a link would be great

1. Does long-term utilization matter, or only utilization for the month prior to someone pulling my FICO? (should I obsess over 0-1% utilization now, or only worry about it in the months prior to applying for a job/mortgage/auto loan?)
2. How do I want my utilization to report: 0% or 1%? I have read 0% is best, but if you have 0% for a long time it looks like you dont use your account. Should I try to have 0% utilization on my traditional card accounts, and have 1% utilization every 3 months? Is there some optimal strategy?
3. How should I allocate spending across my three card accounts to maximize my FICO score?
4. Is the reported spending on a charge account counted as part of my outstanding credit in terms of calculating the utilization rate?
5. Is there anything I could be doing to increase my scores in the long run? (for example, take out a ‘fake/secured/whatever its called loan)

Quick background first to put into context: 7 years ago, I was a stupid irresponsible college kid, racked up debt, went BK. About a year or so after that, got approved for a little $500 card from Capital One and went to work repairing my credit. Couple years after that, got a little $1,000 WAMU card, got a good job with reliable income. Was renting, no huge debt, was approved for a new car auto loan from Capital One, interest rate wasn’t great (about 8.6% 4 or 5 years ago) but by far the best I could get, paid it off 2 years early. During this time also managed to save up a several thousand dollars, put 3.5% down on a sensible FHA mortgage for a cheap house that is well within my means, one year later (today) still in good shape. WAMU card eventually grew to a $5,500 rewards card, converted to Chase, and I guess I used it/paid it off often enough to survive the big credit limit purge, still have my Chase rewards card. No late payments or adverse action at all on record anymore other than 7-yr old BK.

So, following that. My credit score is about as good as it could possibly be and still have a BK on record. It’ll come off in 2-3 years, about 720 TU, 695ish Equifax. I wont need to borrow anything in a year anyway, so I decided to risk the 1-year ding and apply for some cards. Mortgage is with Wells Fargo, so I applied for that, declined. I applied for a rewards card from citi (dont remember which one, but it wasn’t a card that was intended for bad credit), declined.

At that point I figured I’d give up and wait it out until my BK drops off and the credit becomes sparklingly near-perfect. I recently got a surprise in the mail, Capital One offered to let me apply for a no-hassle rewards card. (and it is not the one with the annual fee) I wasn’t going to apply with them or chase because I didnt want to potentially mess up what I had with them (especially that $5,500 chase rewards card, I recognize I’m lucky to have it), but I figured what the hell, I have a financial relationship with them already and they know who I am, so I answered the invitation.

Got the card today! $10,000 limit, 2% cash back for gas and groceries, 1% for everything else, 0% APR for one year, 17.9% thereafter. (If that sounds high, I don’t care, I dont carry balances, I take advantage of cashback rewards) The web site basically says not to apply for this card if you have a BK, so I guess they extended the invitation due to my history with them.

Even though my Chase card was better the last few years, I still used their little $500 card I got long ago at least monthly, always at least some little charge to give them some action on merchant fees, paid off the balance, got a car loan from them and paid that off early, and it appears that because of that, they gave me a card, which their own website warned me not to apply for, that is one hell of a lot better than other companies are willing to give even though the BK still has a few years left until I hit that magical 10-year anniversary.

So, no guarantees, this is just me reporting on my experience, but if you have a recent BK you may want to consider getting a little Capital One card even if the interest rate or limit isn’t great and stick with them for several years. Maybe they will surprise you someday.

Yesterday I went to fill up my truck with gas, and I was denied on a “pre-authorization” for $100.    I just used my debit card, filled up, and went home.   I called AMEX and I was told that I never activated my card (huh?) and they activated it for me and I was good to go.     This morning I tried using it for breakfast at a tim hortons drive through, and I was (embarrasingly) denied.   I used my debit card, and was on my way.  I called AMEX again and the lady couldn’t help me, but put me to credit services.   Credit services informed me that my card was now available to be used again.  I asked her what my limit was, and asked her if I could spend $500 or $600 on it, and she said “You should probably stay around $500 for 6 months before we build up a history with you,  each month that you spend x amount of dollars, it will work towards an average monthly expenditure”.           I just filled up my other truck for $85.00 with the card and had no issue.

Last week I did a “check your spending ability” and I was approved for $1500.      And I also had no problem putting $1400 on it, and I PIF on the day I received my statement.    

Now to my questions:

1.  What happened with the activation issue?   She told me that the gas charge was the first time I exceeded $100 for a single charge, so that is why it was flagged for not being activated. 

2.  Is my limit really $500 now?      I can’t use the “check your available spending” button because I maxed it out this morning trying small amounts before I called into the service department

3.  How can I build up my history of averages with amex if I’m stuck with a small limit such as $500 on a charge card?

Thank You.

I figured I would share an interesting story.

I currently have the Amex green card. About a month or so ago, I called Amex and told them I wanted to upgrade to the Platinum card. I know, the annual fee is hefty but this is the card I want. The rep said it was approved and that I would receive the new card in about 7-10 business days. I called Amex back the next day to confirm and they said they had nothing on file about an upgrade to the Platnium card!! So, I applied again. This time I got a denial letter in the mail, which said my utilization was too high, which it definitely was at the time. Another interesting factor that was stated in the letter was “unsatisfactory payment history with Amex.” I was NEVER late with Amex so I called the # on the letter and spoke to the rep. After reviewing my history, she agreed with me that I have an excellent payment history. She said she removed that reason from the denial.

Since my accounts have just updated and my utilization is much lower (29%) I decided to apply for the upgrade online. Instant approval. Let’s see if I get the card this time!!

Uncle Money

Report monthly

Report to all 3 CBs

Start with a limit of 500 or higher

Every Pre- Approval I ever got was sliced up and trashed.

The first place I was going to try was my credit union.

TU-612 EQ-631 EX-if I had to guess maybe a 590 old collection from 5 years ago

2 recent collections that have recently been PFDed for and waiting for deletion

I will not do anything until those 2 recent baddies are out of my history.

I have a “plan” so let me know your suggestions.

]]> http://www.fast2learn.com/2010/05/26/complicated-amex-dilemma/feed/ 0 http://www.fast2learn.com/2010/05/25/applied-for-nationwide-personal-credit-card/ http://www.fast2learn.com/2010/05/25/applied-for-nationwide-personal-credit-card/#comments Tue, 25 May 2010 16:23:29 +0000 jedwan I applied for Nationwide Personal credit card …. then it asked me like 5 to 6 qus to verify my ID …. but in the it gave me 7 to 10 day message …does that mean i am apporved since they verified my ID or what …… my , TU fico is 737  but my history is short like 4 yrs and new acounts and is there any number i can call and see they can process my application or i just have to wait until they contact me or mail me the decision. thanks