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Question

I have three different credit cards, all in good standing, and all with excellent payment history. A Bank of America Gold card, an American Express Clear, and a Chase Visa. I've had the Bank of America Gold the longest, since sometime around June of 2005 I guess (Bank of America is also the bank I use). It started as a $500 limit secured card (where you give them $99 to deposit in a safe account for a year, and they give it back if you do well). I made multiple payments some months...so much that they made it a regular credit card in 10 months instead of 12 and I got the money back early. The bank lady had never seen that before. Now I have a $5,000 credit limit on it, and almost no balance. The only drawback is a $29 annual fee. I think this is only the second time I've paid it (for the month of June) since I've had the card, just to keep the history and credit limit going for almost another year.

I'll likely drop it and get one that doesn't have an annual fee, before that fee time comes up again.

The American Express card...my online statements go back to December 2006, and I've always paid online. It started with a $2,000 credit limit and is now a $7,000 credit limit with a $1,500 balance on it. They've been awesome.

Then there's the Chase Visa...started with a $1,500 credit limit. After some use and an unknown amount of payments (usually all three of my cards might get 2-3 payments a month), they raised it automatically to $1,700. Over the time...I've tried to push them to raise it, and they raised to $2,200, then eventually to $2,700 after I pushed them some more. They've stayed there...they won't budge. They've turned me down for an increase at least twice now, possibly 3 times. My online statements only go back to January 2007, but I think I may have had it longer (apparently some online companies only keep them available online for 6 months).

I've thought about ditching this Chase card, because their company just seems to be really stuck up and hard to get a comparable limit with (as opposed to Bank of America and American Express). The last time I checked, I had a credit score of about 752. My other cards don't have insane balances on them. Has anyone else had this problem with Chase?

My question is...what other card should I get? I've read before where it's good to have different kinds of cards. I received an offer for a $5,000 credit limit Home Depot card a while back, and didn't bother with it because I didn't want to open something that would just sit there. But I saw where the 'different' cards (big company cards like AmEx, store credit cards, etc.) each seem to have their place and that you need a certain amount of each. If I dropped the Chase and still kept the AmEx and Bank of America...what other card do I need to make my credit card variety "complete" in regards to my credit score?

I'm sorry this is so long...it turned out longer than I thought it would be. :-\

Oh, yeah...and if it matters at all credit-wise, I'm just about 25 years old.

Answer 1

Don't get a Home Depot card just to get a card.

I'd call BofA and ask them to waive their annual fee or you will be closing your account. Start with that and see if you can keep that card and get rid of the fee. Otherwise, any card you get is pretty much the same as long as you are paying off the balance each month. Some have cash back or frequent flyer mile programs like Citibank is tied in with American Airlines, but there are other programs, too.

Answer 2

Keep the BOA card. It is your oldest and has a valuable 'history' that factors into your FICO score.

Apply for BOA Signature card and you should be approved no problem with a 752 score. Also, find out if you can transfer your history from the secured card over to the new BOA Signature credit card without a loss of points.) >>No more $29 annual fee and a lower % apr.

Don't cancel your cards whatever you do. You will lose
history by getting rid of tradelines that factor into your FICO scores. Your 752 score will be
reduced because you'll be losing your 'POSITIVE' available credit line.

Just keep your unwanted card usage at least at a 1-3% utilization. Why? This also factors into your FICO scoring.
No utilization (not using the card) means no positive reporting by the credit card company.

Your age does not factor into the FICO score. Tradelines
and postive payment history does.

Answer 3

No you do not need more cards. It is important to live on cash and only have one or two excellent cards that you use and pay perfectly for emergencies. Pay all of your bills, this includes utilities and rent perfectly and do not apply for more credit, it drags down your credit score.

Drop the one with the annual charge, you can call them and request it be waived, but that may not last. Just keep two with low balances and perfect payments. Do not ever ask for increases, as they will do it automatically when you pay perfectly.

Put your money in the bank and use your debit card if you like using plastic and keep a check register as if you were writing checks. This way to live on your money instead of borrowed money. Good Luck.

Answer 4

Oh my God! if you were that wordy with a csr I have no doubt that you would be given grief in response. Take a minute to compose yourself, catch up on your breath then ask a simple question.

Answer 5

Tell the bank who wants to charge you the fee that you will close the account if they charge it.