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Advice on closing some accts

Established Member

Advice on closing some accts

Hi MyFico Friends!Smiley Very Happy

 

I am in need of some fico advice.  I filed for BK 2008 and just last month I hit my 2 year mark of discharge.  I have obtain quite a bit of credit (i think I was making up for all the denials before my BK).  I know the utilization and inquiries were preventing my score from going up.   I have had no lates, no missed payments, no baddies since my discharge.  My income has gone up since I filed.  But as of today, I have only four items with a balance.  Within the next month or two I would like to just be down to one account with a balance.  I have worked diligently to pay off most of these cards because I want to try to get a home loan. My question is, since I probably have WAAAY more credit than I need, would it hurt my score if I started closing some of them and which ones should I close?   Here's my list:

 

Cap 1 -$500.00 (0 bal) This is my oldest Cap1 card opened in 7/09

Cap 1- $500.00 (0 bal) on the credit step program, next month should be at $750 opened 7/10

Hooters- $500 (0 bal) opened 4/10

HSBC - $320 (0 bal) opend 3/10

Kays - $800 (0 bal) opened 8/09

Credit One $500 (0 bal) my first card after BK opened in 10/08

Credit One $300 (0 bal) opened 8/10

Fingerhut $650 (0 bal) opened 9/08

 

Cards with balances:

Firestone $1000 ($230 bal) will pay off 10/30

Navy Fed Nrewards $500.00 ($400 bal) will pay off 10/30

Navy Personal Loan $800 ($400 bal) will pay off 10/30

NavCheck $5000 ($4700 bal) will start making huge payments starting Nov

 

As I look at this list, I'm asking myself what was I  thinking??  I made the first step by paying them off, I just need some advice of which ones I should start closing.  My family is growing and my hope for us is to get into our own home sometime next year.  Any help and advice would greatly be appreciated. My current EQ Fico 622, TU 575 (I'm thinking because of my high inquiries and my utilization.)

 

Thanks for all your help.

Message 1 of 9
8 REPLIES
Established Contributor

Re: Advice on closing some accts

Don't be too critical with yourself. It sounds as if you have a plan. Paying down your balances will help with your score. At the moment, I would just let the whole bunch of cards age somewhat. I guess that cards with high fees will first get the evil eye from you. Your first Capital One will probably never grow, so you might close it some time in the future, but I don't think it's already time for that one. It will still stay on your report for up to 10 more years and contribute to your average age of accounts.  The one with credit steps is also nothing for forever, but fine for the moment.

 

I have seen Hooters treat some of its customers pretty well, but I cannot help you with tips of what they like to see in order to give CLIs. Paying down your balances will probably help with that, too. HSBC is also nice for the moment, but will probably have to go after a few years. Make sure you keep Kay's happy at the moment - cards that don't cost anything are always nice to have. Not sure why you wanted two Credit One cards? If they are expensive, close one. Fingerhut is fine, I guess. Firestone has some borked-up reporting, if I remember correctly, but as long as it doesn't cost anything, just keep it. Don't carry a balance on it when you need a good score, though. Finally, your Navy stuff will probably stay with you for a long, long time Smiley Happy.

 

All in all, not too bad. A little bit trigger-happy, but I have seen worse. Don't worry too much. Get rid of cards that rip you off, but let the rest age. With your balances gone and the Navy card, you are already approaching "big card" territory.

Message 2 of 9
Established Member

Re: Advice on closing some accts

Thank you Ulan.  Well, today I did it.  I've tried one time before to close my credit one bank acct but was given a CLI, so I kept it open.  This time, the representative was not trying at all to keep me as a customer (good for me).  I told him to close both my accts. He didnt really ask me why, just closed them.  I'm sooo glad i did it though!  it was such a relief, afterwards I cut up the cards.  I'll have to wait and see the effects of the closure, hopefully FICO wont ding me too much.

 

Thanks again Ulan!Smiley Happy

Message 3 of 9
Moderator Emeritus

Re: Advice on closing some accts

 


pmany0324 wrote:

Thank you Ulan.  Well, today I did it.  I've tried one time before to close my credit one bank acct but was given a CLI, so I kept it open.  This time, the representative was not trying at all to keep me as a customer (good for me).  I told him to close both my accts. He didnt really ask me why, just closed them.  I'm sooo glad i did it though!  it was such a relief, afterwards I cut up the cards.  I'll have to wait and see the effects of the closure, hopefully FICO wont ding me too much.

 

Thanks again Ulan!Smiley Happy


 

It might not hurt you at all. Here is information about Closing Credit Cards.

 

 

 

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772
You can do the same thing with hard work


Message 4 of 9
Moderator Emeritus

Re: Advice on closing some accts


pmany0324 wrote:

Thank you Ulan.  Well, today I did it.  I've tried one time before to close my credit one bank acct but was given a CLI, so I kept it open.  This time, the representative was not trying at all to keep me as a customer (good for me).  I told him to close both my accts. He didnt really ask me why, just closed them.  I'm sooo glad i did it though!  it was such a relief, afterwards I cut up the cards.  I'll have to wait and see the effects of the closure, hopefully FICO wont ding me too much.

 

Thanks again Ulan!Smiley Happy


Mmmm.  I think FICO doesn't care if you close those cards - unless it changes your overall utility significantly.  You'll have to do the math to figure that out.  What was your overall utility before?  What will it be after closing? 

 

Because FICO is already dinging you for individual utilization, and because the overall utilization wont' change that much (I believe - I didn't do that math), there is no significant FICO ding to worry about.  (Unless you're closing your only bank/national CC - which is not the case). 

 

Congrats on your paydown program - looks like October is a very good month for you.  BOO!  to high balances Smiley Wink  That will make FICO very very happy.

Just puttin' syrup on something, don't make it pancakes.
Message 5 of 9
New Contributor

Re: Advice on closing some accts

I wouldn't close anything without an annual fee, especially with balances that high, unless you believe "closed by credit grantor" means something.

Message 6 of 9
Valued Contributor

Re: Advice on closing some accts


pmany0324 wrote:

 

Cap 1 -$500.00 (0 bal) This is my oldest Cap1 card opened in 7/09

Cap 1- $500.00 (0 bal) on the credit step program, next month should be at $750 opened 7/10

Hooters- $500 (0 bal) opened 4/10

HSBC - $320 (0 bal) opend 3/10

Kays - $800 (0 bal) opened 8/09

Credit One $500 (0 bal) my first card after BK opened in 10/08

Credit One $300 (0 bal) opened 8/10

Fingerhut $650 (0 bal) opened 9/08

 

Cards with balances:

Firestone $1000 ($230 bal) will pay off 10/30

Navy Fed Nrewards $500.00 ($400 bal) will pay off 10/30

Navy Personal Loan $800 ($400 bal) will pay off 10/30

NavCheck $5000 ($4700 bal) will start making huge payments starting Nov

 


 

Not sure about it can be marge or not on ...

Cap 1 -$500.00 (0 bal) This is my oldest Cap1 card opened in 7/09

Cap 1- $500.00 (0 bal) on the credit step program, next month should be at $750 opened 7/10

 

Credit One $500 (0 bal) my first card after BK opened in 10/08

Credit One $300 (0 bal) opened 8/10

 

If they let you combines two cc to one, go for it ... IMO.

I would like to close the cc with AF.

Keep the Navy Fed's accts open even after pay off.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
It's very tough with small income ~ The Rewards are big little helper to me.
Message 7 of 9
Established Member

Re: Advice on closing some accts

Thank you to all for the wonderful advice! I love this forum. Smiley Very Happy

Message 8 of 9
Valued Contributor

Re: Advice on closing some accts


pmany0324 wrote:

Thank you to all for the wonderful advice! I love this forum. Smiley Very Happy


Good, stay with us!

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
It's very tough with small income ~ The Rewards are big little helper to me.
Message 9 of 9