1 year of credit one card, cancel this month or keep open?

[latexyankee]

Filed 18 months ago, following the advice from the HOW TO GO FROM BNKRPT TO 700 IN 24 MONTHS thread I'm at a crossroad.

This is month 11 and the annual fee will post next statement. I am about to PIF tomorrow and I'm wondering whether to cancel the card or eat the fee and keep the card open. I currently have 3 other open accounts, here are the total accounts

Credit one - $500 limit

Amazon card - 1k limit

Cap one - 3k limit

Walmart - $500 Limit

Also have paypal credit but they dont report. I need to get an auto loan this summer so I want to make the best possible choice here. Closing it would decrease my total credit limit keeping it open I will eat $100 fee. Should I close it and apply for another card? What will give me the best possible bump.

Thanks to everyone here for basically saving my life, I mean that for real, I was in the toilet man and thought I'd never get out. 625 and counting

[alisadarrick]

I canceled mine after one year but that's just me and my score didn't take a hit.  Hopefully others will chime in.

[Anonymous]

3 cards is enough to rebuild is the general consenses. The big thing is to make sure that when you close it you can still keep your uti low. If you can do this then save your hundred dollars and let credit one go. My feeling is credit one is a good rebuilder but you have probably out grown it. If you do decide it's worth keeping call credit one and ask them to waive the 100 annual fee there usally pretty easy to work with, as long as you dont fall behind ever, people say it's hard to get them to remove any negitive information. 

[Anonymous]

IMO if the other cards you have cover your needs, then cancel it and work towards CLI's on the others.

[Anonymous]

On a side note if you dont have any baddies after the BK apply for barclay master card and barclay apple visa cards there a great bank to have and like to reward alot of there customers with credit limit increases. Unlike credit one, barclay offers decent rewards. and usally higher credit limits. Ias a customer of credit one and barclay i highly recommend barclay

[latexyankee]

I have zero baddies on my report since my BK. Zero lates. My ultilzation is right about 30%. Heres the breakdown

$5000 total limit

Walmart $0 balance (500 CL) Only 3 months old

Credit one $0 balance (500 CL) 1 year old

Amazon $180 balance (1000 CL) 6 months old

Cap one $1300 balance (3000 CL) 9 months old

30% of 5K is $1500 my current total balnce is $1480.

Long term I would cancel the card because of the fees. I'm just wondering what I should do in the short term, I need the biggest boost possible as I have to get a new car in the next 3-5 months.

I'm so torn. Perhaps close it and apply elsewhere? I could most likely get an initial balance of $1000 with another card at this point yes? This would increase my CL and even further lower my utilization. I hear conflicting reports on how a recent closed account will affect your score even with perfect payment history.

Any other ideas?

[Scupra]

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@latexyankee wrote:

I have zero baddies on my report since my BK. Zero lates. My ultilzation is right about 30%. Heres the breakdown

$5000 total limit

Walmart $0 balance (500 CL) Only 3 months old

Credit one $0 balance (500 CL) 1 year old

Amazon $180 balance (1000 CL) 6 months old

Cap one $1300 balance (3000 CL) 9 months old

30% of 5K is $1500 my current total balnce is $1480.

Long term I would cancel the card because of the fees. I'm just wondering what I should do in the short term, I need the biggest boost possible as I have to get a new car in the next 3-5 months.

I'm so torn. Perhaps close it and apply elsewhere? I could most likely get an initial balance of $1000 with another card at this point yes? This would increase my CL and even further lower my utilization. I hear conflicting reports on how a recent closed account will affect your score even with perfect payment history.

Any other ideas?

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The closed account will remain on your reports for around 10 years. Closing the card will raise your overall utilization a tad. For the biggest score increase you need to pay off the $180 and make a $1k payment to the Capital One card. This will optimize your FICO score for a new car. If you have plans to app for a new car I wouldn't open a new TL as you will take the hit to AAoA and the new inquiry. Wait to app for a new card until you are done buying a car. Good luck!

[holmesnmanny]

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@latexyankee wrote:

I have zero baddies on my report since my BK. Zero lates. My ultilzation is right about 30%. Heres the breakdown

$5000 total limit

Walmart $0 balance (500 CL) Only 3 months old

Credit one $0 balance (500 CL) 1 year old

Amazon $180 balance (1000 CL) 6 months old

Cap one $1300 balance (3000 CL) 9 months old

30% of 5K is $1500 my current total balnce is $1480.

Long term I would cancel the card because of the fees. I'm just wondering what I should do in the short term, I need the biggest boost possible as I have to get a new car in the next 3-5 months.

I'm so torn. Perhaps close it and apply elsewhere? I could most likely get an initial balance of $1000 with another card at this point yes? This would increase my CL and even further lower my utilization. I hear conflicting reports on how a recent closed account will affect your score even with perfect payment history.

Any other ideas?

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Close that card and get your Cap1 down under 300 and your amazon down under 100. You always want less than 10% on any card. 

[latexyankee]

So I've always been told I want around 30% utilization on my cards in order to build credit. It even states that in the how to BK7 to 700 in 24 mo thread. I realize the lower overall ultilzation when asking for a car loan but where does the 30% come into play?

Also can someone explain how a closed account would affect my score even it it shows zero lates? I am going to keep the credit one for now ask them to waive the fees and ask for CL increase. Just curious as to how a closed account would be viewed.

Thanks

[Scupra]

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@latexyankee wrote:

So I've always been told I want around 30% utilization on my cards in order to build credit. It even states that in the how to BK7 to 700 in 24 mo thread. I realize the lower overall ultilzation when asking for a car loan but where does the 30% come into play?

Also can someone explain how a closed account would affect my score even it it shows zero lates? I am going to keep the credit one for now ask them to waive the fees and ask for CL increase. Just curious as to how a closed account would be viewed.

Thanks

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SoulMaster states to "charge UP TO 30% of the limit" and PIF. Not to carry 30% utilization to "build credit". What you are doing is showing that you can use credit wisely. You want the card to report the balance for FICO scoring reason and then PIF so you aren't paying any interest.

As I touched in my above post, simply closing an account will not affect your score. Off memory so bare with me, closing the account will increase your util around 2% which shoulnd't change your score much at all. Honestly, I would cancel the card right before the AF hits.