Starter Credit Cards
Guest: manny1
Post subject: Starter Credit Cards
Posted: Sun Jul 03, 2005 6:49 pm
Began building my credit about 9 months ago(577 eq midscore), started with First National Bank of Marin and Aspire Visa. Both have high fees and high apr.Since that time have improved my scores to 620 tu,635 eq,637 ex. I now have two no annual fee credit cards: Providian Platinum and Household Visa. I would like very much to dump the 2 annual fee cards but I'm planning to enter the housing market next spring and I'm afraid that my credit scores will be hurt if I get rid of my oldest revolving credit lines. I only received the no annual fee cards in the past two months. My question is whether it would be prudent to follow my gut and cancel these two cards?
As a follow up question I'm wondering what would be a good card to get as my scores continue to improve, and what is the next approximate threshold for a card like that.(650,660)?
This site has been a great help to me and my wife. I've been looking for something like this for a long time and figured it didn't exist.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Polonius
Credit Expert (100+ Posts)
Post subject: Starter Credit Cards
Posted: Sun Jul 03, 2005 8:03 pm
Best advice is to keep the cards current, don't carry a balance on them but use them once or twice in the next year--and then cancel them both before the annual fees are charged once again. That will keep their positive contribution to your credit scores and not cost you anything. Why cancel now when you can cancel much later for no additional cost?
As for the breakpoints on credit scores, those vary by lenders. I've read 700 is a major breakpoint for a FICO score, also 720 and 740...
Guest: guessindigo
Post subject: Starter Credit Cards
Posted: Mon Jul 04, 2005 11:54 am
Ideally, close them on a phased-out basis. So, first apply for some new cards while you have history, then close your highest annual fee card first, wait 12 months and then dump the other starter card, etc, etc. till your done. Closing them all at one time will give a sense of freedom, but will really damage your FICO score.
Guest: Alexis Rios
Post subject: Starter Credit Cards
Posted: Mon Jul 04, 2005 12:19 pm
Since your low credit score is because you don't have a large credit history , the best way is to wait from 6 to 12 months , until you reach 700 credit score , then as guessindigo said , apply to new credit cards , try to apply for platinum credit cards specially , most likely their credit limit would be higher than the first two cc's , close the highest fee cc first , then wait more(6 to 12 months) , if possible try to request a CLI to the new cc , and close the other starter credit card. Is a just matter of time and taking this issue with patience.
Post subject: Starter Credit Cards
Posted: Sun Jul 03, 2005 6:49 pm
Began building my credit about 9 months ago(577 eq midscore), started with First National Bank of Marin and Aspire Visa. Both have high fees and high apr.Since that time have improved my scores to 620 tu,635 eq,637 ex. I now have two no annual fee credit cards: Providian Platinum and Household Visa. I would like very much to dump the 2 annual fee cards but I'm planning to enter the housing market next spring and I'm afraid that my credit scores will be hurt if I get rid of my oldest revolving credit lines. I only received the no annual fee cards in the past two months. My question is whether it would be prudent to follow my gut and cancel these two cards?
As a follow up question I'm wondering what would be a good card to get as my scores continue to improve, and what is the next approximate threshold for a card like that.(650,660)?
This site has been a great help to me and my wife. I've been looking for something like this for a long time and figured it didn't exist.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Polonius
Credit Expert (100+ Posts)
Post subject: Starter Credit Cards
Posted: Sun Jul 03, 2005 8:03 pm
Best advice is to keep the cards current, don't carry a balance on them but use them once or twice in the next year--and then cancel them both before the annual fees are charged once again. That will keep their positive contribution to your credit scores and not cost you anything. Why cancel now when you can cancel much later for no additional cost?
As for the breakpoints on credit scores, those vary by lenders. I've read 700 is a major breakpoint for a FICO score, also 720 and 740...
Guest: guessindigo
Post subject: Starter Credit Cards
Posted: Mon Jul 04, 2005 11:54 am
Ideally, close them on a phased-out basis. So, first apply for some new cards while you have history, then close your highest annual fee card first, wait 12 months and then dump the other starter card, etc, etc. till your done. Closing them all at one time will give a sense of freedom, but will really damage your FICO score.
Guest: Alexis Rios
Post subject: Starter Credit Cards
Posted: Mon Jul 04, 2005 12:19 pm
Since your low credit score is because you don't have a large credit history , the best way is to wait from 6 to 12 months , until you reach 700 credit score , then as guessindigo said , apply to new credit cards , try to apply for platinum credit cards specially , most likely their credit limit would be higher than the first two cc's , close the highest fee cc first , then wait more(6 to 12 months) , if possible try to request a CLI to the new cc , and close the other starter credit card. Is a just matter of time and taking this issue with patience.
posted by CardRatings.com at 5:44 PM
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