travisn

Thanks for all the info guys! Just a few questions in response... good to know, does it matter if I close it myself or let them do it? I've never consolidated any debt before if that matters I really dont plan on using credit for small purchases if I can help it (besides student loans, house, etc). Being in a pretty intense program at scool I plan on working as little as possible which means no unnecessary purchases. As long as I can stay on top of things I should be able to not swipe a credit card the whole time. Only to keep things active. Every 6 months is good to know. How is this possible? If I close an account at 1 year is it a constant factor of 1 being averaged in forever? I hope to never have a card that charges an annual fee. It seems like a way for them to charge you interest without buying anything. Not worth it as far as my understanding goes. I was thinking this, since I wont really need any 'real' credit for a few years, keeping them open until then will just build a more robust long term credit. I plan on having 0% util so it doesnt matter how high my TL's are. But I do wish my SL would increase their limit. I dont want to ask and have it be a hard pull... Thanks! in 2013 that only bad mark will be gone from my credit so that will be a good year for me! p/s anyone want to buy my car? it would be awesome not to have that payment anymore!!! http://rochester.craigslist.org/cto/1949785799.html

I use credit karma for my credit monitoring service. its close enough for me and seems to be working/accurate. Regardless, it tells me that the two things that are hurting my score the most are Average Age of open accounts and utilization. (I also have ONE 30 day late from 06 when I mailed a cc payment in from college and it was late) I have since got down to 15% utilization of all of my accounts per a spreadsheet I have, so once everyone updates to the credit bureaus that area will be fine. But average age is something I need to work on. I have six open cc's. Old navy, Walmart, Lowes, Paypal, HSBC, and a local CU. all but the local CU and paypal have been open less 3 years. My average age is 3 years 2 months. Right now Old Navy, Lowes, and the credit union are all paid off. Approx $200 remains on each of the other three. I am considering closing the Old navy and Lowes cards this week. and the Walmart one shortly once I get it paid off. I want to cancel Paypal just because the high interest rate, but I have had it such a long time. Will this negatively hurt me in any way by closing those 3 accounts (old navy, lowes, walmart)? I know my average age will go up since they are less than my average. And utilization wont be affected because everything will be paid off in a month or two. Thanks Random possibly useful information: Old Navy: $124 credit limit (LOL, I just looked this up. it used to be $500) Opened 5/08, paid off 6/08 Lowes: $1200 limit, opened 8/08, paid off 8/09 (12mos interest free) ESL Credit union: $500 limit, opened 10/04, late 12/06, paid off 9/10, 10.65% apr Walmart: $1600 limit, opened 6/08, $197 balance, 22.9% apr Paypal: $900 limit, opened 2/05, $200 balance, 26.99% apr HSBC: $1000 limit, opened 11/08, $278 balance, 16.99% apr Also, I have never asked for a limit increase or apr decrease. Paypal and Walmart automatically increased their limits. Of course ESL wont since they have the lowest apr, thats just how things work. Everything is in my name and non-secured. I have an auto loan with HSBC that is about $3800. and about $50k in student debt. My highest credit karma score was 710 last march after I paid all my ccs down with my tax refund. I expect it to be that or higher once everything updates. Now CK puts me at a 697 but shows $1600 in outstanding cc debt. I'm 24 and currently in college (M.E.). My 22 y.o. girlfriend has an 832 per KC. wtf. I dont plan on needing new credit any time soon, but I just want to get it where it should/can be. I plan on buying a house within 5 years, but other than that and student loans I have no need to apply for anything else. Thanks again for any insight you can provide. You now know my full financial story. -Travis

Cool. thanks guys. well tonight I just completed my first 'responsible' credit card purchase. I bought $50 worth of groceries tonight on the cc, got home and set up a payment for $60. I think Ill continue this trend every week. I almost forgot, I have an Old Navy credit card that I got one day because of some deal they were offering, but it has been paid off for a while. I just hate having cards I dont use or need. If it doesnt directly hurt me I am going to close it, along with the lowes card. I only ever impulse buy on store cards, not things I plan and budget for.

I am not really worried about the interest because either way everything will be paid off in <1 year. So there is no positive or negative to closing PIF accounts? I really dont like having things I dont need or use, like the lowes card. I have read somewhere that having too much available credit can hurt you as much as having money on the cards because your potential to occur new debt?

Thanks for your response. here we go: Summer 08 -paid off a 6k GE money credit card, the limit was like 8k, i lowered the limit to 2500, since closed that. -got my truck loan refinanced from 16.9% to 10.89% with five star Fall 08 -opened a Lowes card with zero interest till October '09 with $900 on it/ 1200 limit. December 08 -traded the truck in for an 01 accord at 8.59% with hsbc. I have never had anything go to default/collections and the last time I had a late payment was with paypal, but they said they wont report it (few days late, now I pay a few weeks before its due) and they even removed the late charge without me asking. Before that was a 30 day on my esl credit card in Dec 06, and another 30 day in 6/06 on a monro muffler credit card (which was paid off/closed 8/06). I pulled my reports Feb 07 and had a 668 with trans union, 659 with experian and a 616 fico with equifax. Current Debt: Sallie Mae 31,510 (various loans 6-11%) (autobody degree and tools) Student loans 5-7k? (recent from this school year) (back to school for business/engineering) lowes 0 (paid off before the interest only period expired) ESL Credit Card 397 (10.65%) (500 limit) Paypal Buyer Credit 353 (20.80%) (500 limit) Walmart 723 (19.87%) (900 limit) Hsbc 926 (12.74%) (1200 limit) car 5595 (8.59%) (4 year term) Personal Loan 2732 (16%)(1 year term) In a month or so ill have about 2500 in savings. I make about 1200 after taxes each month (I know, I am a poor college student, lol), which leaves me with about 250 to put towards savings after bills/rent/groceries/etc are paid. I am going to be in school for 3-4 more years, so income will be limited. My plan is to have everything paid off before June '10 (besides school loans and the accord) so I can focus on school instead of having to work a lot. I am not sure what accounts I should close and what I should keep open after paying them off that will help me the best credit wise. Whenever I get denied for credit its because of DTI and not not enough/too many revolving credit lines (I forget which one, its been a while) In my defense I walked into HSBC and within 15 minutes got a check for 3500 for a personal loan in July(dont ask). I am also debating paying off the personal loan because that's 300 a month, so it will give me more breathing room, and I'll have that 300 to put towards the other cc's each month. I just am afraid that I wont put the whole 300 towards those cc's if I am not required to (as in being forced to make the personal loan payment instead). I have quit using the credit cards as I wasn't disciplined enough to pay them off as I used them. Which was my plan with the walmart credit card, I suppose I could use it for groceries instead of my debit card then immediately go home and do a transfer/payment to that card for the same amount. After this weeks fiasco of the Accord needing an emergency brake job I realized it wouldn't be smart to suddenly bring my cash savings to zero, unless I paid off a credit card to have in an emergency. Thankfully I can fix my own cars, I couldn't imagine having to hand over 3-500 for a brake job. Any/all advice is greatly appreciated.

I am coming close to paying a bunch of accounts off and am not sure if I should close some accounts, pay off others or what. I tired searching but didnt find anything. I dont mind posting my whole financial situation, but I want to make sure someone will actually provide solid advice before I do so. Thanks!