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Here's my situation;
i have had a Chase Amazon card since 2003, and it currently has a $3,500 limit. I never use this card. Up until this year it even had a balance I was working to pay off. Now that it's paid off, I really don't have a need for this card.
i know that closing it will not directly effect my FICO, and since I no longer have any credit card debt I'm also not worried about util.
so, I was thinking about calling chase and transferring as much of that $3,500 limit as I could to my Freedom (which currently has a $4,000 limit).
my question is, however, does the limit of closed accounts effect my FICO in any way. Obviously it won't effect util, but does a closed account which previously had a limit of $3,500 somehow look "better" than a closed account which had a limit of $500? Or, does all this not matter at all, and I should just transfer the limit and close it?
It's utilization that matters. Utilization factors in limits. If you're going to close it then transfer the limit and close it.
@irrational wrote:Here's my situation;
i have had a Chase Amazon card since 2003, and it currently has a $3,500 limit. I never use this card. Up until this year it even had a balance I was working to pay off. Now that it's paid off, I really don't have a need for this card.
i know that closing it will not directly effect my FICO, and since I no longer have any credit card debt I'm also not worried about util.
so, I was thinking about calling chase and transferring as much of that $3,500 limit as I could to my Freedom (which currently has a $4,000 limit).
my question is, however, does the limit of closed accounts effect my FICO in any way. Obviously it won't effect util, but does a closed account which previously had a limit of $3,500 somehow look "better" than a closed account which had a limit of $500? Or, does all this not matter at all, and I should just transfer the limit and close it?
No, that won't matter. But, once you close it the age of the account is now fixed for that account (i.e. it won't get larger any more) and it only stays on your credit report for 7-10 years. After it drops off your CR it could have a significant impact on your AAoA - depending on how many cards you have at that time and how old they are.
I personally would move as much of it over to the Freedom as possible and then leave it open till Chase closes it themselves.
Thanks guys!
I SMed Chase, and had them move $3,000 from my Amazon card over to my Freedom. This brings my Freedom up to $7,000. I ended up leaving the Amazon card open, but with a $500 limit... Lol.