GamingG

They are not bringing down your score. In fact, they helping it by a lot, because even though they aren't helping your average age of open accounts, they are helping your average age of accounts and total credit report age. It's probably far too late to reopen them now, so enjoy the boost they give you until they get removed from your report. Positive items tend to stay on your report for about 10 years after the account is closed.

Here is a thread in which someone claimed that their HSBC card was closed after not being used since February: http://creditboards.com/forums/index.php?showtopic=442563

Also, someone else replied that their account was closed with HSBC after only 3 months of non-use.

I appreciate your compliments, and I'm glad I can help. :)

Your card issuers want you to use your cards so that they can generate a profit from the interchange fees they collect when you use the card. You, however, want to minimize your utilization (without letting it get to 0%) and minimize the number of accounts that report a balance to the credit bureaus (again, without letting it get to 0). In order to get the best of both worlds, you can use a card and pay it off in full before the statement even cuts, as most issuers report the balance on your cards to the credit bureaus every time a statement is issued, so a $0 balance will report, but your card is still being used, so they won't close it for inactivity.

Your credit score is based on your responsible use of credit. As such, having no use of credit is not good for your score, so you'll want to have some balances reporting; however, you will want to limit the number and amount of these balances so that you can show that you are using credit (by having balances), but you are responsible with it (by having few balances and a low utilization).

My goal is to have no more than half of my cards reporting a balance at one time, and to always keep my utilization under 30% (under 10% most of the time, especially when I might apply for something new).

If your balance due is $0, then you most certainly cannot be past due. Your cards will continue to report a positive payment history. I recommend, however, that you occassionally allow a small balance to report on each card (don't let each card have a $0 balance for a long time), as I have read that some scoring systems will weigh accounts that are "inactive" for a long period of time as less (though I have not experienced this firsthand).

To give you an example, an account that was previously reporting a $0 just reporting a moderate balance (my overall utilization is still under 10% and given an A by the credit report card), and my Credit Karma score went down a few points. While it wasn't much, I imagine that it could cause some damage if a large number of accounts were to report a balance.

Using cards and allowing them to report balances and positive payment history will show lenders that you are capable of managing credit, not overextending yourself, and paying on time.

You can limit the number of cards that report a balance by "rotating" cards (I'll use these 6 this month, these 7 next month, and these 6 the month after...). Just make sure that you don't let cards go too long without use or you might face account closure for inactivity. I wouldn't risk more than 3 months of inactivity in today's credit climate, but I could just be a bit paranoid, since I've heard of people having 6 month rotations with no problems.

Another viable option that I like to take advantage of is to use a card for a few small purchases and pay it in full immediately, before the statement is even produced. This allows the card to have some use so it won't be closed, but most issuers report the balance to the credit bureaus that shows up as your statement balance, and if you pay in full prior to the statement date, this balance will be $0. If you really want to be exact about it, you can consider subscribing to a service that allows you to view your full credit reports at least once a month, such as True Credit that is often advertised here.

Remember, though, that with your already high score, the most points will be gained by being patient as your accounts age. Just keep building a solid payment history and keep your utilization low, and your score will only go up over time.

Average age of all of your accounts, closed and opened, will affect your score in some way, so closing your new accounts will not help your score; in fact, it may hurt you, since your utilization will go up due to having less available credit.

You said that you have 19 open cards now, and that your current score is 787. 787 is a very good score, and 19 open cards is plenty to maximize your score (though you could get away with several more if you managed them well). When you pay off that $20,000 balance transfer, that may help your score drastically, as utilization per card matters, too; Even if your utilization overall is low, if you have a maxed out card, this can hurt you.

Since you're already dealing with a really high score, most of your improvements will come from subtle things, like letting your new accounts age, having a higher average age of accounts, getting few (if any) hard inquiries, and limiting the number of cards that report a balance other than $0 each month.

There are many, many different scoring models out there. Among each of those models, there are variations of the models, and the models are often updated, so there are different versions. Additionally, for each model, variation, and version combination, you have one based on the information contained at each of the major CRAs (Equifax, Experian, and TransUnion). As such, scores are going to vary greatly based on where you get them. Don't compare scores from two different sources, but, rather, pick a score (such as CreditKarma's TransRisk score, provided by TransUnion) and use it to track your credit worthiness over time.

HSBC, the company that owns Orchard, is rarely giving out credit limit increases anymore.

Closed accounts disappear from your reports after 7 to 10 years, so unless you have some of those accounts from your 20s still open, they may very well not be on your reports anymore.

If a card isn't working for you, close it! The age of the account will continue to to help you as long as it stays on your report (sometimes even as long as 10 years!).

You will have less available credit and fewer open tradelines, though, so I suggest replacing that subprime Orchard card with another prime rewards card or low interest card so that you can maximize rewards, have multiple credit options if Capital One doesn't work for you, and build a good payment history on multiple cards at the same time.

Closed accounts are included in your score because they show your likeliness of repayment. Think about it... wouldn't you rather lend money to someone who has borrowed money before and completely payed it back?

More accounts is a good thing, too. Would you rather lend money to someone who has only ever had one credit card that he managed responsibly, or to someone who has managed two credit cards, an auto loan, and a mortgage responsibly?

I recommend keeping 2-4 cards open so that you can have options. What if one company decides to raise your rates or introduce an annual fee? You have much more leverage to negotiate better terms if you have the ability to walk away. Plus, your future creditors will like to see that you can effectively manage multiple open accounts with high limits, and your score will reflect that.

"if there not making money on you they dont want you not a very smart bussiness move on there part"

Actually, that sounds like a very smart business move. If they aren't making money from you, why would they want your business?

How can you possibly know your Experian FICO? Consumers cannot purchase them anymore, so unless your mortgage broker told you or you're a member of PSECU, that isn't your Experian FICO.

"From now on if I can't afford to pay for it outright, I can't afford it at all."

Enjoy renting for the rest of your life.

I know someone who bought a house for about $50,000, 46 years ago. He took out a mortgage to buy the house. Had he saved the money, by the time he had $50,000 saved, the house would have been worth more than $100,000. He ended up paying about $90,000 for the house, after you include the interest. Today, that house is worth about $1,400,000. Of course, I bet you think he's stupid for taking out a mortgage to buy that house, don't you?

If you want to get a mortgage someday, you need a good credit score. And... guess what? I haven't paid a cent of credit card interest in my life. I sure have gotten lots of credit card rewards, though.

They're not crooks. They are offering a service to those that have truly horrible credit. That being said, there are better secured cards out there, in my opinion. But, if you've literally tried everywhere else and have been repeatedly denied, at least this company will give you something. Keep a secured card for about a year, get a few cards from other issuers that don't have annual fees, and then either upgrade your secured card to an unsecured card or close the account.

Ask your issuer to report the whole credit history for that account.

If you are talking about an Amex CREDIT card (Blue, for instance), then the limit should be reporting, but if it isn't reporting for some reason, the high balance would be used instead for the purpose of utilization calculation. If you are talking about an Amex CHARGE card (Green, Gold, Platinum, Zync, etc.) then that utilization is not counted because it is not reported to the bureaus as a revolving account.

ING DIRECT performs a HARD credit check (Equifax) before approving applications for Electric Orange, and it will appear as a hard inquiry on your Equifax credit report, though you won't see it here on Credit Karma because Credit Karma only checks TransUnion. There is no credit check for their Orange Savings account, however.

You can't write checks from the Electric Orange account, either. Read the FAQ. When they say it's a paperless checking account, they mean it. You can use the debit card they send you and you can use their bill pay to have them write checks, but they will never give you checks and you can't have your own printed.

Thus, FNBO Direct's Billpay account is nearly identical to ING Direct's Electric Orange account. Personally, I don't see the point of even having checks anymore if you can use online bill pay with your checking account, considering that the few times that you won't be able to use your debit card you can either get cash from the ATM or use bill pay, rather than writing a check, but I thought I'd note the difference for those that might think you're getting paper checks with either of those banks.

No.

The charge-off should probably drop off of your report after the full 7 years has elapsed, which will increase your score.

Also, in the case of the collections, don't say anything that they could interpret as you claiming the debt, and tell them that you demand to see written proof of the debt and you don't want to hear from them until you get it. Since it was paid a long time ago, you won't have to worry. They won't have proof of the debt (since there no longer is any debt) and they'll leave you alone. If they keep calling you without providing the proof you ask, you could sue.

Try to contact your creditors to see if you can get a settlement for less than the actual amount owed. If so, have them document the settlement in writing and then pay them off. Otherwise, yes, you should probably file bankruptcy, though I recommend you seek expert advice before doing anything.

Also, the highest balance you ever had on the card does stay on your report, but this number isn't considered into your credit score normally and I have never heard of anyone getting denied credit because of a previous high balance.

Having high credit limits does NOT lower your score. In fact, it could help your score because the high limit makes it easier to keep a utilization under 10%, which is ideal.

Having high credit limits may cause you to be denied credit by some lenders, as they sometimes check to see if you have too much available credit already. However, if this happens, they will inform you. If that is the case, you could ask the $10k account provider to lower your limit instead of closing it.