I've had an orchard bank and a first premier bank credit card for about a year now, I'm trying to rebuild my credit score since bankruptcy. I was just approved for and got a capital one card. I only have a $250 limit on one (which is paid off) and a $400 limit on another (that I owe about $320 on). The capital one card has a $1k limit. I was debating paying off the one card and canceling them both. The interest rates are crazy (30%) and they charge me $6/month. Should I cancel them?
Thanks!
2007-08-23 04:51:26 · 6 answers · asked by Richard W 1 in Business & Finance ➔ Credit
Cancel all of them and don't use credit cards. Use a bank card that has a Visa or MasterCard function. You can build your credit that way without going into debt with a credit card.
2007-08-23 05:02:23 · answer #1 · answered by Anonymous · 0⤊ 2⤋
I would guess that the FP is the one with the $250 credit limit and charging you the 6$ a month. If you have 0 balance on that, I would defiantly close it now.
Now as for the Orchard card, you should not close that one. But what you need to do is pay it off. Once it is paid off, use it for a few daily purchases every month. Then at the end of the month pay it off ON-TIME to avoid the interest. When you do this do not spend over 30%($120) for the most help in your score. I have not heard of Orchard charging a "Monthly" fee, but if they are you might want to call them and see if they can remove that fee for you. If you have had the card for a while and decent history they might.
2007-08-23 12:11:48 · answer #2 · answered by OC1999 7 · 3⤊ 0⤋
Your score might take a slight hit when you close the cards but if they are charging you a monthly fee, pay it in full and close the card. Make sure you send a letter to close the account and request verification that the account is close
If you really want to build a good credit score, only charge what you can afford to pay off in full each month. When you do this, the credit card company will automatically increase your credit limit every year or so. You also get better interest rates.
But carrying balances on credit cards, especially more than 50% of your available credit, trashes your score. Never carry more than 30%.
2007-08-23 12:07:08 · answer #3 · answered by bdancer222 7 · 1⤊ 0⤋
Having a card with a 400 limit and having 320 charged to it will not help your score in the least. You need to keep balances below 50% of your limit and even lower for a few more points.
2007-08-23 12:00:30 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Keep the card. Orchard bank charges high fees like all those sucker cards but it's better than most.
Since you are still fresh out of BK it's important to keep building credit. If you close the acct it could negatively impact your score (length of time on accounts). Also, the more active accounts the better. Pay down the balance.
2007-08-24 02:25:32 · answer #5 · answered by Richard S. 3 · 2⤊ 1⤋
when you have this many Credit Cards...you got to discipline yourselves to use One....others for Emergency's....don't Cancel any of them pay them off...and use one ...doing that helps build your Credit score
2007-08-23 12:04:55 · answer #6 · answered by babo1dm 6 · 0⤊ 0⤋