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Afraid to close accounts!!!

Mega Contributor

Re: Afraid to close accounts!!!


Bobby1146 wrote:

So they say its never good to close old accounts! I have a old account I really want to close, the APR is 24+%, its a Gap Visa & its a set APR (they say) it'll never go down, but that's the only cards problem. I have a $4,000.00 credit limit on it, but afraid to use it. I have other cards with a waaaaaay lower APR, most recently "Chase Sapphire" at 15% APR & a $5,000.00 credit line, a "Discover more" with  a $2,500.00 credit line & a 16+% on it, a Chase Freedom with a $1,100.00 & APR of 23+% (which is how they get all their great "Rewards" back). Anyways, I've had the Gap Visa for about 6 years & I think its opened many credit doors for me, but they have way too much competition now & I'm afraid to close it with out this decision hurting y credit score. Should I wait for them to close it for inactivity? I really don't know my options. But I think its stopping other companies from giving me a higher credit line. My goal is to have ONE credit card with a LOW APR & high credit limit, not $10,000.00 scattered around in several cards. Also I'm not interested in NO TYPE OF REWARDS (FYI, we do pay for them) just a nice low APR. 

 

Please Advise...


Why would you want to close it?!?!? No AF, 4K extra on overall util. 6 year history. 

 

Buy a pack of gum on it every other month and PIF. Would make no sense to close it!!




EQ FICO 548 3/3/16
Message 11 of 19
Established Contributor

Re: Afraid to close accounts!!!


LS2982 wrote:

Bobby1146 wrote:

So they say its never good to close old accounts! I have a old account I really want to close, the APR is 24+%, its a Gap Visa & its a set APR (they say) it'll never go down, but that's the only cards problem. I have a $4,000.00 credit limit on it, but afraid to use it. I have other cards with a waaaaaay lower APR, most recently "Chase Sapphire" at 15% APR & a $5,000.00 credit line, a "Discover more" with  a $2,500.00 credit line & a 16+% on it, a Chase Freedom with a $1,100.00 & APR of 23+% (which is how they get all their great "Rewards" back). Anyways, I've had the Gap Visa for about 6 years & I think its opened many credit doors for me, but they have way too much competition now & I'm afraid to close it with out this decision hurting y credit score. Should I wait for them to close it for inactivity? I really don't know my options. But I think its stopping other companies from giving me a higher credit line. My goal is to have ONE credit card with a LOW APR & high credit limit, not $10,000.00 scattered around in several cards. Also I'm not interested in NO TYPE OF REWARDS (FYI, we do pay for them) just a nice low APR. 

 

Please Advise...


Why would you want to close it?!?!? No AF, 4K extra on overall util. 6 year history. 

 

Buy a pack of gum on it every other month and PIF. Would make no sense to close it!!


+1,000 I don't see anything with that card that would be reason to close it. Just buy something small like LS said.

 

But in the event you eventually start getting denials due to too much available credit, then you could consider it in the lineup of "cards to close". Smiley Happy


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Message 12 of 19
Regular Contributor

Re: Afraid to close accounts!!!


Bobby1146 wrote:

So they say its never good to close old accounts! I have a old account I really want to close, the APR is 24+%, its a Gap Visa & its a set APR (they say) it'll never go down, but that's the only cards problem. I have a $4,000.00 credit limit on it, but afraid to use it. I have other cards with a waaaaaay lower APR, most recently "Chase Sapphire" at 15% APR & a $5,000.00 credit line, a "Discover more" with  a $2,500.00 credit line & a 16+% on it, a Chase Freedom with a $1,100.00 & APR of 23+% (which is how they get all their great "Rewards" back). Anyways, I've had the Gap Visa for about 6 years & I think its opened many credit doors for me, but they have way too much competition now & I'm afraid to close it with out this decision hurting y credit score. Should I wait for them to close it for inactivity? I really don't know my options. But I think its stopping other companies from giving me a higher credit line. My goal is to have ONE credit card with a LOW APR & high credit limit, not $10,000.00 scattered around in several cards. Also I'm not interested in NO TYPE OF REWARDS (FYI, we do pay for them) just a nice low APR. 

 

Please Advise...


Maybe I'm missing the point, but why are you afraid to use the card? it has no AF, it's a Visa that can be used anywhere and while the APR is high, if you PIF it really doesn't matter what the APR is.

Start: (2-26): EQ 602 (Myfico) TU 579 (Credit Karma) EX 634 FAKO
Current: (7-12): EQ 690(myfico) WalmartTU 696 EX 689 (lender 6-3)
1st Goal: 680 across the board - DONE June 2013!
2nd Goal: 725 across the board
Message 13 of 19
Regular Contributor

Re: Afraid to close accounts!!!

OP:

 

remember this is all part of a big matemathical equation.  Closing this account will hurt your score a bit depending your util %.   As some member stated you no need to carry a balance on this card.  Buy a $5 shirt once here and there. and back to get dust.  

 

It would hurt more closing it than having it in a a sock ....

Message 14 of 19
Contributor

Re: Afraid to close accounts!!!

I'll echo what others have already mentioned. If you regulate your spending properly and only charge on your card what you can afford to pay off in the same month, you don't need to worry about paying any interest. If you want to harvest rewards, this is the way to go.

 

If you want to carry balances from month to month, a rewards card is not what you need. You'd be better off looking for something like the Slate for BT, or a credit union card with a low APR.



Amex BCE: $16.5k, Discover It: $5k, Chase Freedom Visa: $10k, Fidelity Amex: $7.5k, PenFed Cash Rewards Visa: $3.5k, CapOne Union Plus MC: $4.5k, Barclays Upromise MC: $5k, BoA Cash Rewards 123 MC: $1.5k
Message 15 of 19
Valued Contributor

Re: Afraid to close accounts!!!

First, just buy a packing gum every couple of months to keep the card open. It will help your utility if you ever carry a balance on other cards and age over the long term.

Second, PIF and you don't have to worry about the interest rate. Rewards cards are for rewards, not carrying balances. They have always had higher interest rates to offset the rewards, this isn't new or unique to chase. Just don't spend more on these cards than you can afford to pay for the month.

Third, for your desired card you need to get into a good credit union. Low interest + large limit = credit union. DCU is a very good one anyone can join. Looking at the interest rates your getting your credit report looks like it needs a little work before you get the lowest rates from anyone. Even on Chase rewards cards they do around 12% with good credit.
Message 16 of 19
Senior Contributor

Re: Afraid to close accounts!!!

I would NOT close it.
If it becomes an issue in the future with too much available credit as deemed by a creditor for denial, then i'd consider lowering the cl. Until then, it will help your util.
Hell, if I were you, I'd get started working on a $10k line by calling up GE Credit Solutions and asking for a cli to $10k on it :-)

Am I right, lexie? And LS?
Marriott PR$25k | BCE $24.5K |BankAmericard Visa $25k| BOA Better Bal $17.5k |Wmt Discover $12.5k | BR Visa $17.5k | Amex Delta Gold $10k | Discover IT $10k | Paypal Extras MC $15k | Amazon Store $10k|Smile Gen $7.25k | Dillard's $10k | West Elm $4k| Express $3.05K | Mypoints.com Visa $4.5k | Freedom Visa $1k| Amex Surpass $1k
Message 17 of 19
Moderator Emerita

Re: Afraid to close accounts!!!

@youngandcreditwrthy

Yes, you are correct. Helps with util, I don't see a problem at all with keeping it open.
Message 18 of 19
Highlighted
Established Member

Re: Afraid to close accounts!!!

What I'm trying to point out is, if you have a C/C with $5,000.00 & a 15% APR (New Acct), why keep a C/C with a $4,000.00 & a 25+% APR? It makes NO SENSE. Department store C/C's have high APR with NO perks & HIGH APR's. I will not make any large purchases with this card. Why keep it? Another concern of mine is, this card maybe holding other banks back from giving me a higher credit line, I have 3 Visa cards already.

Chase Sapphire $5000/ Gap Visa $5000/ Discover$6500, Barclays Ring $5000, Chase Freedom $1,100.00/ Macy's $3000/ Best Buy $3400
Message 19 of 19