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Contributor
cassie3783
Posts: 97
Registered: ‎05-30-2012

Re: Axing low CL cards?

Thanks, everyone, for your input & advice!

 

I'm not quite sure yet what I will be doing but I'm definitely going to take some things y'all have said into consideration when coming to a final decision about anything.

 

Thanks again!  :smileyhappy:

Current Score: I don't wanna talk about it this month!
Current Goal:750 across the board
Ultimate Goal: 800+
Chillin' (for real this time) in the garden for a while now until AT LEAST 12/2013. *sigh* Wish me luck!
Valued Contributor
jamesdwi
Posts: 1,434
Registered: ‎09-16-2011

Re: Axing low CL cards?


OptimalFICO wrote:

cassie3783 wrote:

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!!  :smileyhappy:


I would keep and garden the following revolving accounts:

    Cap1 despite the annual fee for now (at least until you have other accounts open for at least one year, preferably two)

    USAA (love USAA, great customer service)

    Credit Union (great to have a CU relationship as they are typically cheaper on auto and other loans)

    Discover (Good CL and CLIs)

 

Since all of them were opened so recently, I would absolutely immediately close:

     Wal-Mart

     Old Navy

     Texaco

     Chase

 

The interest rates shouldn't matter as much per se, as it would be best if you don't maintain a balance anyway. Still you are left with a few cards with decent rates for the rare times you must carry a balance. Only reason to keep one of the cards in the close pile is if there is some benefit you will use often. Otherwise, it eventually hurts you to have too many accounts open. IMHO it's better to close them ASAP.


3 of those cards are GE backed cards and are CLI friendly, they will grow quickly. If you want to close a card, the Old Navy is low and may be justified. Walmart Card also includes free TU fico scores every month.  Chase is a Prime Card be it an entry level prime card it will grow with you after 6 months you can ask for a CLI they may even match your discover card or even higher. 

Cards: Chase Southwest 20k & CSP 10k & Amtrak 4.6k, & Freedom 3.3k & Slate 3.3k, FNBO DISC 14.9k Oregon Duck 5k, & AMEX BCP 15k & AMEX Hilton Surpass 7.5k & AMEX Zync NPSL, Sams Club Discover 10k, Paypal Extras MC 6k, CapOne 2.5k, CapOne 750, Amazon 3.9k, Walmart 4.5k, Citi Simplicity 7k, HHonors Gold 1k (moved 5k CL to Simplicity), Discover IT 6.5k and a nice stack of store cards.
Last APP 4/26//2014 no plans for new credit I think I have enough.

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