Credit Cards

[perfectuniverse1]

I have 2 first premier cards both $500 CL %20.15 APR. And one Orchard Bank HSBC card, $400 CL %20.00 APR. These are my first 3 cards after starting some major credit rebuilding. Im paying a $84 annual fee for each FB and $72 annual fee for the Orchard. But i never pay any interest. Now I have 2 better cards: Cap 1 Cash rewards $2000 CL and Chase Freedom $2000 CL. I was just approved this month so these are not on my credit report yet. Im guessing I should close the sub prime cards ASAP? It will only hurt in 10 yrs when these trade lines fall off? Besides a Verizon blunder I hope to get removed, I have a million sallie mae loans that went 120+ days late around 2009/2010 on my CR. Im guessing by the time all of these fall off in 4 or 5 yrs my score will drastically improve and shouldnt take too much of a hit 5 yrs after that when these sub prime cards fall off. Any advice on how I should go about closing these cards?

[Chris123nTx]

Just be sure the balance is zero and call them and close them. You could leave them open until the next yearly fee hits, but if it were me, they would be gone. There is no point in them with the other cards you have now, other than a bit of a cl that could help with util if you are one that runs balances, other than that give them the axe. Just my opinion, been wrong before and most likely will be again at some point in my life.

[TNTransplant]

I agree.  I would cut them all loose ASAP.  Why continue to pay for subprime cards once they have served their purpose?

[Crashem]

I would get a third card if possible. Store card or credit card. 3 revolving is good. Hit in 10 years won't matter as other cards will have aged.

[perfectuniverse1]

Thanks everyone! Im not sure about any store cards.. and Ive already applied for a was denied for a CIti Fwd and Amex Zync.  in thelast week.  So I think I shoud lay low on the applying for a little while.  And since I moved recently I have a lot of credit inqs dealing with that, utilities and such.  I have fair credit, 667 CK.  Is there a card out there I should apply for aside from the 2 I have? And how long should I wait before I apply?

[tinuviel]

Congratulations on making substanital progress on your credit rebuild!

The two cards that you just got are far better than your rebuilder cards. You can close the rebuilders whenever you feel ready. The history will remain on you reports for 10 years, so your AAoA won't take an immediate hit. And, one would assume that you'll be adding to your portfolio over the course of the decade, so that will all help to even out your AAoA. As was mentioned, just make sure that you close the cards with a 0 balance so that you don't hurt your util percentages.

[tinuviel]

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perfectuniverse1 wrote:

Thanks everyone! Im not sure about any store cards.. and Ive already applied for a was denied for a CIti Fwd and Amex Zync.  in thelast week.  So I think I shoud lay low on the applying for a little while.  And since I moved recently I have a lot of credit inqs dealing with that, utilities and such.  I have fair credit, 667 CK.  Is there a card out there I should apply for aside from the 2 I have? And how long should I wait before I apply?

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How many inqs and on which CRAs?

[perfectuniverse1]

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tinuviel wrote:

Congratulations on making substanital progress on your credit rebuild!

The two cards that you just got are far better than your rebuilder cards. You can close the rebuilders whenever you feel ready. The history will remain on you reports for 10 years, so your AAoA won't take an immediate hit. And, one would assume that you'll be adding to your portfolio over the course of the decade, so that will all help to even out your AAoA. As was mentioned, just make sure that you close the cards with a 0 balance so that you don't hurt your util percentages.

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thank u! will do!

[perfectuniverse1]

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tinuviel wrote:

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perfectuniverse1 wrote:

Thanks everyone! Im not sure about any store cards.. and Ive already applied for a was denied for a CIti Fwd and Amex Zync.  in thelast week.  So I think I shoud lay low on the applying for a little while.  And since I moved recently I have a lot of credit inqs dealing with that, utilities and such.  I have fair credit, 667 CK.  Is there a card out there I should apply for aside from the 2 I have? And how long should I wait before I apply?

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How many inqs and on which CRAs?

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Experian: 7

Equifax: 6

TU:4

I dont see Chase on any of my reports, Im sure they should show up on one of them soon.

[sc2761]

Piggybacking on the OP's question:  I have the 3 cards in my signature, all have no AF.  Would anyone close the HSBC card which has a zero balance?  In reading these forums it seems they will never increase the limit and it is owned by Cap One now.   Or should I leave it open since no AF and just use it here and there.  Since the Barclays was opened a month ago, I use it for everyday purchases to gain rewards and then PIF as I go.  The cap one is just used for a purchase here and there since they have only gave a $500 increase in the 1.5 years I have had it.  Any feedback is greatly appreciated.  Thank you!