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Level 1

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Hi everyone --

 

I started rebuilding credit about 16 months ago after not having any for about ten years.  The first card I got was a secured card through my credit union with a limit of $300 (it is still at this limit).  A month or so later, I applied and was approved for a Capital One card.  The limit started low and is now, because of timely payments, at $2500 (the limit, not the balance).  My wife took out a card in my name at a discount clothing store and I just don't shop there, so I would like to close it.  I'm also thinking of closing the secured card and applying for one more credit card, either through my credit union, bank or through USAA, my car insurance provider. We have a mortgage through Wells Fargo as well, so perhaps they might be an option.

 

What are your thoughts on this, and, if you think that closing the other two cards would be a good option to help raise my credit score, what card would be the best to apply for?

 

Thanks in advance to anyone who takes the time to respond.

6 Replies
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Level 15

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@Adamian wrote:

What are your thoughts on this, and, if you think that closing the other two cards would be a good option to help raise my credit score, what card would be the best to apply for?


You might want to read the information at the link below with respect to closing credit card accounts in an effort to increase your credit score. The site also has some information on a variety of credit cards.

 

https://www.creditkarma.com/credit-cards/i/how-to-cancel-credit-card/

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New Member

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Get rid of the Store Credit Card. It does you no good as you can use a VISA/MC/Amx for the same purpose. USAA has a great reputation and generally the lowest interest rates you will find. While it's good to have a primary and backup credit card, make a habit of using only one. Your Credit Union card will not affect your credit rating, perhaps you could use it as a debit card? Otherwise, see if you credit union will switch this out for a debit card so you have 24/7 cash access

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Returning Member

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Returning Member

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Just make those decisions that you feel as though benefit you and your situation.

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New Member

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I would nix the store card. Its worthless in your case. Keep the small card open maybe use for gas and pay off every 30 days. A new card you will want a cash back card. Maybe the cash Americard? That seems to be a great card. Earn on your purchases and build that credit. 

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Level 2

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If you don't use the store card, just let it go inactive. I, myself, have a card that I don't use, but I leave alone. Closing any account will lower your credit availability rating. Don't close that secured card but have a sitdown with the bank that issued it to find out how to qualify for an unsecured account, now that you have established a credit rating on payment history with that card and the Capitol one card (congrats on that). Apply for one more card, this year 2020 (you want to limit the hard check on your credit report as that affects your credit score too).   The new version of FICO scoring is tougher on establishing credit because it is looking at a completely different emphasis to make the score. Credit utilization of available credit is the top point, which is why you don't want to close any accounts because it lowers your credit availability dollars. Good Luck, don't expect instant results plan for the long term result.