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First question I got is What is the song that is from the Discover Card commercial with the elephant? Thanks for any response. My other question... I've been out of work for a year and am finally employed enough again to start cleaning my Discover card house. On the plus side in the last year I haven't missed any Discover card payments and my credit report doesn't make it look like I've been actively seeking additional credit (2 new small Discover card accounts this year - 500 limit each & 1 since closed). On the negative side I tapped into my largest credit lines while unemployed so my utilization is up to 50-60% with a balance on my primary card of ~12/14k and total balances on all my cards of ~12k/20k. Like a lot of other people my limits have been drastically cut back on the cards I wasn't using regularly & one card I wasn't carrying a balance on was closed outright by the creditor even further increasing my perceived utilization.

Another negative is that my credit history is shortish (5+ years). All in all my fico score as of this week is ~730..

In this situation my current plan is to:.

(1) pay down my 12k primary card balance another 2k (tax refund, etc.).

(2) shift small portions of my 12k primary card balance to other cards to keep them active.

(3) shift some debt to a business Discover card which I've had for several years and doesn't show up on my credit report.

(4) do a cash-out refinance of my car (4%.

) and put the extra ~3k toward my primary card balance.

(5) seek one or two credit line increases to lower my perceived utilization (after steps 1-4 since I'm nervous about cards being closed after they pull my report).

I really feel like I need to tackle this actively since another credit line decrease could shoot my utilization up to stratospheric levels and make it really hard to get things back into order. Is this a good plan? Is there anything else I should be trying to do? Should the fact that the new Discover card laws are going into effect february 22nd affect my plans?.

Thanks in advance for everyone's help!..

asked Mar 04 at 10:50

Giovanni's gravatar image

Giovanni
57


Hmm... I need to find out myself. I don't know what is the right answer to your question. I'll do some poking around and get back to you if I discover an good answer. You should email the people at Discover Card as they probably could help you..

answered Mar 04 at 11:29

Trenton's gravatar image

Trenton
331

The plan is still pretty fluid right now - I'll post an update soon with both (1) actual changes that have been made since my original post and (2) revisions to my plan based on those changes..

Anyone have any other tips, comments, or suggestions?..

answered Mar 04 at 12:57

Caylee
's gravatar image

Caylee
3571

Congrats on the job and good luck!.

With the new job I would also think about setting aside a bit of money to replenish the EF..

answered Mar 04 at 13:07

Nia
's gravatar image

Nia
3099

If the average age of my accounts (9 total - 5 revolving, 2 auto, 2 student loans) is only 3 years will closing my newest credit account (opened 7/09 - $0 balance - $500 limit) increase the average age of my accounts enough to help my score? If I can afford to close it should I close it or leave it open?..

answered Mar 04 at 14:38

Jennifer
's gravatar image

Jennifer
2548

Closing an account doesn't increase your average age( unless you could get the tradeline deleted) as FICO averages both open and closed accounts for purposes of age..

All closing it would do is hurt your utilization. Unless it's got an annual fee, leave it open..

EDIT:.

Few more things...remember to not scorechase if there are no impending purchases. Pay off cards based on interest rate, not FICO effect..

This post has been edited by.

Jtoast.

: 18 January 2010 - 12:11 PM..

answered Mar 04 at 16:01

Wyatt's gravatar image

Wyatt
1565

My goals here are to:.

(1) get my credit score up as much as possible in the next month (paying down balances, lowering utilization, etc.).

(2) once my fico score peaks (using scorewatch) do my batch of yearly credit line increase requests (further dropping my utilization).

(3) transfer balances if low rate balance transfer offers are available.

(4) -IF- the auto refinance I applied for doesn't go through -THEN- I can have them pull the new improved report when I reapply.

(5) let everything sit until 2011..

answered Mar 04 at 16:18

Lillian
's gravatar image

Lillian
2178

*nod* sounds good. Just keep in mind that FICO also tracks the number of cards with balances. If you have a small balance on several cards, it will hurt your score also. Its a tough balancing act...

answered Mar 04 at 17:20

Jaydon's gravatar image

Jaydon
162

Sounds like you are in pretty darn good shape for being unemployed for a year!.

Congrats on keeping your credit clean!.

Good luck paying (with Discover card) down your balances.....

answered Mar 04 at 18:58

Lizbeth
's gravatar image

Lizbeth
2787

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