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Contributor
Posts: 99
Registered: ‎05-30-2012
0

Axing low CL cards?

[ Edited ]

Currently in my wallet & their corresponding CL, dates opened & current interest %:

 

Wal-Mart: $400, 6/12, 23%

Credit Union MC: $1k, 6/12, 13.9%

Old Navy: $250, 5/12, 24.99%

Texaco (gas card, not the visa): $500, 6/12, 26.99%

Discover: $1,200, 5/12, 3.99%

USAA: $6K, 7/12, 0% for 12 months

Cap 1: $350, 3/11 (oldest card), 22.9%

Chase: $500, 7/12, 0.00% for 15 months.

 

Total CL: $10,200, current UTI: 13%

AAoA: 3 years

 

definitely think I got a little app spree happy after a few approvals & kept it up.  However, I'm in the garden now & not apping for anything at all until next year.

 

However, I'm considering cancelling a few of the lower CL, high interest cards, for a few reasons:

 

  •  bc of the low credit limit, it would only take buying 1 shirt, 1 gallon of gas, etc., to skyrocket my UTI.
  •  the interest rate is ridiculous.  although, I always plan to PIF each month, there may be a few months that doesn't happen & I don't want to pay an astronomical interest rate on a low balance.

I do, however, plan to keep the Cap1 in the sock drawer simply bc it's my oldest card.

 

Orrrr......should I just sock drawer them all & only pull them out once a month for a low amount transaction then pay it in full just to keep them active & reporting?  Honestly, 8 cards is a little much for me to continually keep up with each month & that's the main reason why I'm considering axing some of the unnecessary cards.

 

Any thoughts/advice/comments?

 

Thanks in advance!!  Smiley Happy

Super Contributor
Posts: 9,674
Registered: ‎01-28-2010
0

Re: Axing low CL cards?

 

Which cards have annual fees, and how much are they ?

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Contributor
Posts: 99
Registered: ‎05-30-2012
0

Re: Axing low CL cards?


pizzadude wrote:

 

Which cards have annual fees, and how much are they ?


Sorry, forgot about that.

Only Cap1 has an AF of $29.

Super Contributor
Posts: 9,674
Registered: ‎01-28-2010
0

Re: Axing low CL cards?

 

If that's the case I'd probably close it ( assuming they won't waive the fee ) and just sock drawer the other low limit cards.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Contributor
Posts: 99
Registered: ‎05-30-2012
0

Re: Axing low CL cards?

But that's also my oldest credit card.  Wouldn't that drop my AAoA and ultimately affect my score?

Frequent Contributor
Posts: 382
Registered: ‎06-26-2012
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Re: Axing low CL cards?

If I were you, I'd get rid of the Cap 1 when the AF is due if they won't waive it.

 

Not because its Cap 1 -  but because its a $30 AF on a 300 CL . If your already keeping $0 balances on most cards the $300 missing won't do much. But I wouldn't close until the AF is due and they say they won't waive it for another year. If they waive keep it and charge a coffee every couple months to keep it active and then re-evaluate the follwoing year.



Current: Eq- 624 Ex - 631 (lender pulled) TU - 661 (lender pulled)
Goal 700+ across all three
Frequent Contributor
Posts: 382
Registered: ‎06-26-2012
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Re: Axing low CL cards?


cassie3783 wrote:

But that's also my oldest credit card.  Wouldn't that drop my AAoA and ultimately affect my score?


Pulled this directly from the "closing credit card" stickie

 

In the long-term, closing a CC in good standing with a $0 balance will generally be deleted from your CR after 10 years. Once this account is deleted, if your length of credit history and/or average age of accounts decreases in the number of years, your scores might drop.

 

 

So quick answer is "yes" long answer is yes but not really for 10 years and by then hopefully all these new accounts will have aged so 1 account won't really matter THAT much.  If you keep opening/closing/etc then yeah it will have a long term affect. Since all these other cards have no AF keep them open even if you dont' really use them keep them open for the 10 years while your Cap 1 card will still be on your report and when it drops off your AAOA will be 10 years and that extra year or two won't have mattered THAT much.

 



Current: Eq- 624 Ex - 631 (lender pulled) TU - 661 (lender pulled)
Goal 700+ across all three
Super Contributor
Posts: 9,674
Registered: ‎01-28-2010
0

Re: Axing low CL cards?


cassie3783 wrote:

But that's also my oldest credit card.  Wouldn't that drop my AAoA and ultimately affect my score?


AAoA includes both closed and open accounts.     If you close the card it will appear on your credit reports for 10 years from the date closed and will continue to be factored into your AAoA.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Contributor
Posts: 99
Registered: ‎05-30-2012
0

Re: Axing low CL cards?

Thanks, all!

 

I will see if I can't get Cap1 to waive the AF.  If not, I guess I will be cancelling it.  Seems ridiculous to pay an AF on such a low CL.  Oh, well, Cap 1 served their purpose when no one else would even look @ me!

 

Thanks again!

Valued Contributor
Posts: 2,285
Registered: ‎09-16-2011
0

Re: Axing low CL cards?

Time to garden you recieved a bunch of cards in the last couple months, request CLI's on the GE backed cards after the 4th statement cuts. Close the CapOne card when the AF posts if CapOne doesn't waive it. 

 

in 6 months your GE backed cards could potentially double CL and will serve you well. 

 

 

 

 

Cards: Chase Southwest 20k & CSP 10k & Freedom 6.6k & Amtrak 4.6k, FNBO DISC 14.9k Oregon Duck 5k, & AMEX BCP 15k & Hilton Surpass 7.5k & Delta Gold 6k & Zync NPSL, Fidelity AMEX 12k Sally Mae5k Sams Club MC 10k, Paypal Extras MC 6k, CapOne Venture 15k, QS 2.5k, QS 750, Amazon 5k, Walmart 10k, Citi Simplicity 7k, HHonors Gold 1k (moved 5k CL to Simplicity), Discover IT 10k and a nice stack of store cards.
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