Which is a better way to go?

[nomoneynomore]

[jacko]

Credit addiction is alive and well.

[BobMango]

Well, jacko's very helpful post aside, you need to understand how credit scores are calculated. Total credit utilization and solid payment history are two of the biggest factors. If you close the two accounts with annual fees, you will likely take a hit initially, but I'd certainly learn to live without those two and put the $120 into the bank. Then I'd advise keeping your utilization low on the remaining card and see if you can get that limit bumped up in six months or so.

The real question is what is your goal? At these scores you'd certainly qualify for FHA/USDA/VA lending. So why are you worried about your score? If it's to get more credit cards then I think you'd be well served to rethink what you're after. If you are looking to refinance a car to a better rate or buy a house sometime in the near future, then just make sure you keep your total utilization low and pay on time.

[nomoneynomore]

Thanks

Jacko--

Thanks for your very unhelpful response. We have a specific reason for needing to boost our credit scores and credit history. Not everyone is "just wanting more credit." There are many other reasons to boost scores.

We don't over extend our credit in any way. We pay everything off in full every month and we don't rely on credit to live our lives. We COULD live on a totally cash basis if we wanted and or needed to. We have done very, very well since our bankruptcy and have no financial troubles whatsoever. However, there are some situations in life where a good credit score is a must and we wish to be ready for those situations.

I realize it is entirely true that some people can't handle having credit available and it spells big troubles for them. We never had a problem "spending above our means" and weren't forced into bankruptcy because of overspending. Every story is different and should be handled differently.

If you have nothing nice to say, maybe it's better (and much more polite) to just keep the fingers off the keyboard and go on about your life. This is not a forum where judgement, critizism or putdowns are necessary or needed. Most of us are here to lend support and advice to others or seek the same when needed. I have read threads that I felt the urge to reply unkindly or without the advice asked for, but I refrained, knowing that to reply would likely hurt their feelings and was simply my unneeded opinion.

[nomoneynomore]

BobMango--
Thanks for the useful advice. A couple of questions I have.
1. What is "Total credit utilization"?
2. How do I best utilize my total credit?
3. "keeping your utilization low" Does this mean not using it at all, or just paying it off every month?


We do have a perfect payment history since our discharge, so I know we have that going for us.

"The real question is what is your goal? So why are you worried about your score?" Insurance premiums are one reason for wanting a higher score. We stand to cut our premiums by 25-30% when our credit scores are above 725 (according to our agent). But the goal has to do with a job situation. If/when credit is at a certain level, there is a substantal promotion waiting, which would include a good sized pay raise plus bonus & a few other benefits. But without good credit, it's not possible to have this happen.

"If it's to get more credit cards then I think you'd be well served to rethink what you're after." No, we aren't interested in living on credit cards at all, or obtaining more cards. As stated in my first post, we ONLY use them to build our credit.

"If you are looking to refinance a car to a better rate"
We actually just refinanced our vehicle from 14.9% to 7.9% a couple months ago, so I know we are slowly gaining our credit worthiness back.

Once again, let me make this clear, we are not wanting to just run credit up, and we don't have any plans to live on any sort of credit. In fact, we should be completely debt free before Sept 1st of this year, which makes me do the happy dance!

[jacko]

Ooops, I just read your next post on your reason for a higher debt score. I doubt, you can raise your debt score to 725 anytime soon on piddly $300 credit card limits. This will take time, over years. Have you thought of shopping around for a better insurance rate? Maybe like paying cash up front on the annual premium?

Jacko--

Thanks for your very unhelpful response. We have a specific reason for needing to boost our credit scores and credit history. Not everyone is "just wanting more credit." There are many other reasons to boost scores.

We don't over extend our credit in any way. We pay everything off in full every month and we don't rely on credit to live our lives. We COULD live on a totally cash basis if we wanted and or needed to. We have done very, very well since our bankruptcy and have no financial troubles whatsoever. However, there are some situations in life where a good credit score is a must and we wish to be ready for those situations.

I realize it is entirely true that some people can't handle having credit available and it spells big troubles for them. We never had a problem "spending above our means" and weren't forced into bankruptcy because of overspending. Every story is different and should be handled differently.

If you have nothing nice to say, maybe it's better (and much more polite) to just keep the fingers off the keyboard and go on about your life. This is not a forum where judgement, critizism or putdowns are necessary or needed. Most of us are here to lend support and advice to others or seek the same when needed. I have read threads that I felt the urge to reply unkindly or without the advice asked for, but I refrained, knowing that to reply would likely hurt their feelings and was simply my unneeded opinion.

[nomoneynomore]

Insurance premiums are one reason for wanting a higher score. We stand to cut our premiums by 25-30% when our credit scores are above 725 (according to our agent).

But the goal has to do with a job situation. If/when credit is at a certain level, there is a substantal promotion waiting, which would include a good sized pay raise plus bonus & a few other benefits. But without good credit, it's not possible to have this happen.

What are you hope to gain from with a higher debt score?

[BobMango]

BobMango--
Thanks for the useful advice. A couple of questions I have.
1. What is "Total credit utilization"?
2. How do I best utilize my total credit?
3. "keeping your utilization low" Does this mean not using it at all, or just paying it off every month?


We do have a perfect payment history since our discharge, so I know we have that going for us.

"The real question is what is your goal? So why are you worried about your score?" Insurance premiums are one reason for wanting a higher score. We stand to cut our premiums by 25-30% when our credit scores are above 725 (according to our agent). But the goal has to do with a job situation. If/when credit is at a certain level, there is a substantal promotion waiting, which would include a good sized pay raise plus bonus & a few other benefits. But without good credit, it's not possible to have this happen.

"If it's to get more credit cards then I think you'd be well served to rethink what you're after." No, we aren't interested in living on credit cards at all, or obtaining more cards. As stated in my first post, we ONLY use them to build our credit.

"If you are looking to refinance a car to a better rate"
We actually just refinanced our vehicle from 14.9% to 7.9% a couple months ago, so I know we are slowly gaining our credit worthiness back.

Once again, let me make this clear, we are not wanting to just run credit up, and we don't have any plans to live on any sort of credit. In fact, we should be completely debt free before Sept 1st of this year, which makes me do the happy dance!

Credit utilization is just the percentage of available credit that you use. For instance if you have $1000 of revolving credit total and carry a $250 balance then your total utilization is 25%. If you carry a $900 balance then it's 90%. Credit grantors like to see a low utilization which to them indicates that you are not looking for more credit to get by.

In terms of how to keep it low, it really depends. Some folks make multiple payments in a month to ensure that it stays low. What matters is what your balance is when the creditor reports to the CRAs. So you can use it, but make sure that the amount is low when it gets reported, usually end of month I believe.

[nomoneynomore]

Thank you for that info. I thought that is what it meant, but wanted to make sure. We pay everything off every single Friday, and rarely use more than $75 per card, so I would think we should be doing ok.

[jlmaca]

Insurance premiums are one reason for wanting a higher score. We stand to cut our premiums by 25-30% when our credit scores are above 725 (according to our agent).

But the goal has to do with a job situation. If/when credit is at a certain level, there is a substantal promotion waiting, which would include a good sized pay raise plus bonus & a few other benefits. But without good credit, it's not possible to have this happen.

I've never heard of such a thing, an employer holding out on a promotion because of credit? Why are they checking your credit in the first place? Unreal.

[mermaids614]

I've heard the FBI and IRS check potential employee's credit scores. I remember reading that after getting my Bachelors in Criminal Justice. Supposedly, your credit report and how you pay your bills tells a lot about your integrity, according to them.

[nomoneynomore]

That is exactly correct! While he doesn't work for either of these, it's the same concept. Good credit=honest, upstanding, reliable employee in their minds.

Supposedly, your credit report and how you pay your bills tells a lot about your integrity, according to them.

[LSUTiger32]

I know it's hard for people on here to comprhend, but my scores have gone up a very similar amount to yours and I have not borrowed ONE CENT in nearly 12 months. You do not need these cheezy $300 limit cards to improve your score. If anything, someone who actually reviews the credit report may see those as a negative. The idea that you can't improve your score without a credit card is bogus.

[nomoneynomore]

I am very happy to hear that from someone. I have actually never heard a story like yours, but always wondered if it were true! I am planning on closing the premier cards. If my score drops a bit, so be it. We have good credit history and if it isn't good enough, so be it. I'm not interested in paying the yearly fees and insane interest to "hopefully" raise my score a few points.

I know it's hard for people on here to comprhend, but my scores have gone up a very similar amount to yours and I have not borrowed ONE CENT in nearly 12 months. You do not need these cheezy $300 limit cards to improve your score. If anything, someone who actually reviews the credit report may see those as a negative. The idea that you can't improve your score without a credit card is bogus.

[BobMango]

I am very happy to hear that from someone. I have actually never heard a story like yours, but always wondered if it were true! I am planning on closing the premier cards. If my score drops a bit, so be it. We have good credit history and if it isn't good enough, so be it. I'm not interested in paying the yearly fees and insane interest to "hopefully" raise my score a few points.

You may recall that I suggested you close those accounts back in post #3.

That being said, yes you can raise your score without obtaining credit cards, but since your scores are a measure of how you handle debt, it stands to reason that not having any debt will eventually bring that score down.

I'm all for living debt free and am working on that goal. I haven't borrowed anything for more than two years. When my existing obligations are done I won't be jumping back in. Having said that I do use credit cards for small expenses like Netflix and some other small recurring bills. Never have a balance for more than a week or two so no finance charges.