@babson wrote:
Question, when lenders determine your starting limits or future credit limits, is it based on averages? I have a Chase Amazon Rewards Visa that I moved most of the limit off of to other cards due to non use. So this card reports a small limit of 1500 and if it is being used as an average in regards to limits, I think it needs to go.
That brings me to my second question. I understand there will be no impact to my AAoA since the TL will report for 10 years after I close, but is there any impact whatsoever if I initiate closure of this account? It has been open for 1 year and 6 months. Thanks in advance for the help.
No. I have four cards that are particularly low limits: Freedom got CLD to $1,500 several years ago, Citi gave me a $1,000 Diamond Preferred in 2012, and I opened a $500 secured PenFed card in late 2014, opened a $500 secured SDFCU card in mid-2015.
My card approvals since October 2014 have been Diners $20k, Fred Meyer $10k, Marriott $6k, Hyatt $12k, Hilton $10k, Venture $30k, Citi AA $13k, SPG $10k, EDP $15k, PRG, PenFed Promise $16k, Citi AA #2 $9k, Citi Hilton $13k. The limit you receive is more a function of how that lender sees your overall credit, as well as any internal limits you may be running up to, and there is even variation in how co-branded cards are looked at vs house brand cards.
I also have several cards closed by me, some closed by lender. They don't affect your ability to get credit. Just the act of closing has no influence, except in the sense that you no longer have that credit available. So in some marginal situations it might help get new credit, if you don't have a large unused card sitting around.
