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Should I close subprimes before apping?

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Anonymous
Not applicable

Should I close subprimes before apping?

Hey guys I currently have 5 credit cards:

 

Barclays Apple - $1200 limit (1 month old)

Cathay Pacific Plat - $2500 limit (1 month old)

Capital One QS1 - $300 limit (3 months old)

Credit One - $600 limit (3 months old) 

US Bank Secured - $300 limit (1 year old)

 

I'm thinking about going on an app spree soon as my scores are pretty good and should be between 690-720 very soon.

 

Should I close the Credit One and US Bank Secured before apping or does it not make a difference? I know it will affect overall utilization and AAoA of open accounts. I'm not sure if it makes much of a difference though.

 

Can someone give me advice on this matter? Thanks! 

11 REPLIES 11
joltdude
Senior Contributor

Re: Should I close subprimes before apping?

Wouldn't close anything yet and i'd garden for at least 6-9 months .. close to a year even......

 

Theres an ingredient your missing... its not just the score.... its age......Again. your score may be high, but its not very strong...

Meaning it won't stand up to scrutiny, either a UW or the automated type....

 

Really don't think its time for a spree yet... let some of those accounts get closer to a year old... know you want to try to get those fees to stop but you really want to think about that near month 11 not month 3-4....

 

Please reconsider..

At this point you don't need to close subprimes.. but youll want to closer to when they hit their 11th month before the one year fees kick in.

 

https://www.youtube.com/watch?v=W9ZD3_ppcPE

 

-J

 

Message 2 of 12
CH-7-Mission-Accomplished
Valued Contributor

Re: Should I close subprimes before apping?

I agree about holding on a bit to let your cards age.   Also though there is some evidence that having five-plus cards reporting gives the highest FICO score boost, so what you should do, once you start applying for better long term cards, is apply for a new card or two and then once approved, go back and close one or two of the ones you want to eliminate.   This way you never have less than five cards reporting for FICO scoring purposes.    So open new cards, then close old cards, and keep a base of five.

Message 3 of 12
Anonymous
Not applicable

Re: Should I close subprimes before apping?

+2

 

I was in your same boat and have two subprime cards. The Cap 1 I'm going to keep for now and is my oldest (one year this month). The other I'll be closing once that annual fee kicks in again. I've kept those accounts open and have paid on them consistently, PIF'ng every month, making multiple payments a month. Scores were likes yours...but waited until the one year mark and then apped. Was successful with two prime card approvals with decent SL's just a week ago (first two cards under wallet ↓). As above posters mentioned, age is an important factor when applying for credit. Anyone can have a credit card open for a month and make one payment on time. It's the longevity most like to see.

 

Don't close anything just yet and I would definitely garden for a bit if these accounts are as new as you say. Remember, if you app and get denied, you waste an HP. You also risk being denied automatically because of two many inquiries, assuming all those cards you have now were HP's and were done so recently ago (HP's take 1-2 years to completely fall off, depending on scoring model used by lender).

 

Just a suggestion....

 

Hope this helps Smiley Happy

Message 4 of 12
Anonymous
Not applicable

Re: Should I close subprimes before apping?


@Anonymous wrote:

+2

 

I was in your same boat and have two subprime cards. The Cap 1 I'm going to keep for now and is my oldest (one year this month). The other I'll be closing once that annual fee kicks in again. I've kept those accounts open and have paid on them consistently, PIF'ng every month, making multiple payments a month. Scores were likes yours...but waited until the one year mark and then apped. Was successful with two prime card approvals with decent SL's just a week ago (first two cards under wallet ↓). As above posters mentioned, age is an important factor when applying for credit. Anyone can have a credit card open for a month and make one payment on time. It's the longevity most like to see.

 

Don't close anything just yet and I would definitely garden for a bit if these accounts are as new as you say. Remember, if you app and get denied, you waste an HP. You also risk being denied automatically because of two many inquiries, assuming all those cards you have now were HP's and were done so recently ago (HP's take 1-2 years to completely fall off, depending on scoring model used by lender).

 

Just a suggestion....

 

Hope this helps Smiley Happy


 

 

+3

Garden and dont close your cards let it get old at least 1 year

Message 5 of 12
pipeguy
Senior Contributor

Re: Should I close subprimes before apping?

If it were me I'd close the Credit One account, but then again I never would have opened it considering the vultures behind that company. 

 

I "get" the excitement of being approved for new accounts, but from your post, it looks like you just went on an app spree (1 month and 3-month-old accounts). 

 

As others have mentioned, building a strong credit history is not a speed race and you need to think long-term in years rather than quantity over quality.

 

Would you rather have 1 or 2 universal use cards (MC/V/AE/Discover) with limits of $5000 or 10 starter or store cards with $300 to $500 limits? Although at this point you might be thinking quantity that will evolve into the quality of your cards over time, but if you think about it that way (better or prime cards you can use anywhere) you'll resist the instant gratification of "app sprees" for cards you'll end up closing or not using.   

Message 6 of 12
Anonymous
Not applicable

Re: Should I close subprimes before apping?


@pipeguy wrote:

If it were me I'd close the Credit One account, but then again I never would have opened it considering the vultures behind that company. 

 

I "get" the excitement of being approved for new accounts, but from your post, it looks like you just went on an app spree (1 month and 3-month-old accounts). 

 

As others have mentioned, building a strong credit history is not a speed race and you need to think long-term in years rather than quantity over quality.

 

Would you rather have 1 or 2 universal use cards (MC/V/AE/Discover) with limits of $5000 or 10 starter or store cards with $300 to $500 limits? Although at this point you might be thinking quantity that will evolve into the quality of your cards over time, but if you think about it that way (better or prime cards you can use anywhere) you'll resist the instant gratification of "app sprees" for cards you'll end up closing or not using.   


+1!!

 

I must agree with him on the Credit One card. I now wish I had never opened mine and am just thankful it's not my oldest so I can close it out without hurting my AAoA. Trust me, I understand the temptation of apping and the gratification received when you get that magic number and instant approval, but these things take time. I was highly tempted to keep apping earlier this week (felt I was on a role), but stopped after successful approval #2. Back to gardening for me.... I understand the process and have patience. Although, I realize not all of us do. However, I would heed the advice given here. I feel all the advice I was given was true and sincere and by listening to it (and continuing to), I've been able to succeed at what I want so far. 

 

Good advice from everyone above! ↑↑↑  Smiley Wink

 

P.S. - Remember, we're all family here and only want to see all fellow forum members succeed. If you're interested, there is a Garden forum to cool down in and share your thoughts and frustration. UncleB maintains it and it's a great thing to be involved in! Heart

Message 7 of 12
AverageJoesCredit
Legendary Contributor

Re: Should I close subprimes before apping?

5 cards in 3 months, that's plenty of spree for now imo. If you give it a year, using your current cards to establish payment history your score will rise and you'll be in a better position to apply for what you want not what you can getSmiley Happy
Message 8 of 12
Anonymous
Not applicable

Re: Should I close subprimes before apping?

1. Close Credit One no matter what your decision is, the account will continue to age for up to 10 years after closure so it will not affect your current AAoA, the only place that cares about AAoA for only open accounts is Credit Karma and a few others that uses VantageScore.

 

2. Don't go spree, go garden like everyone is suggesting, going spree now will most likely result in a few more cards with toy limits based on your profile, as well as a few wasted inquiries due to rejections.

Message 9 of 12
Anonymous
Not applicable

Re: Should I close subprimes before apping?

Really appreciate all the advice everyone! 

 

I think I will keep all 5 cards , keep util down , and age them. Ill probably start apping in december, right before the holidays! haha i think that shud be a lot of time in the garden.

Message 10 of 12
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