Working to correct years of “The Great Credit” frenzy.
My wife has a Chase Visa balance $15K Max limit and Amex Balance $4K max limit. I have Citi Visa $0 $24K limit and Discover balance $12K max limit. I am a user on her cards and she is a user on my cards. We also have a collection of consumer credit accounts for when we made larger purchases and received 24 month interest free and paid them off in the time period.
- Does it hurt our score if we are users on each others account? should we be taken off one anthers accounts?
- Is it a good idea to ask for a credit limit reduction? the Citi Visa is at $24K and a Home Depot at $19K both with zero balances.
- Should I close the consumer credit we open at the Appliance and furniture stores that gave us the 24 mo interest free that we are not using nor have a balance?
“Great Credit Frenzy”, LOL. I hear you brother.
- If you are joint account holders the amount of credit you have at your fingertips may impact your debt to income ration. If you just authorized users then it won’t.
- I would not ask for a credit reduction unless you were to go apply for a new mortgage and the broker said you had too much open and available credit. The big limit does not harm you otherwise. And if you do use the card any purchase will most likely be a small percentage of the credit limit giving you a small credit utilization percentage which is good.
- Closing the appliance and furniture store accounts is a good move since they carry a much lesser weight in calculating your credit score. Accounts nearly anyone can qualify for like those and store cards are helpful to facilitate a purchase but not to build good credit.
On the remaining cards with a balance, if you have good credit, this is an excellent time to look at LendingClub.com for an unsecured debt consolidation loan. LendingClub.com reports to the major credit bureaus so the loan can help to build or maintain your good credit as you pay off the higher interest rate cards.
Also, you may be interested in ReadyForZero.com as a resource to give you a get out of debt plan for free.
Please post your responses and follow-up messages to me on this in the comments section below.
You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
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