Reply
Established Contributor
Posts: 652
Registered: ‎12-12-2012
0

Close and app? Close and don't app? Don't close?

I have a Kroger 123 rewards card that is terrible with rewards.  I have used it for balance transfers before, but the limit is only 5k.  I'm considering cancelling this card and apping for an Amex for backdating or getting a Chase Freedom.  It is one of my older accounts, but it is my understanding that account age accrues for closed credit cards.  I've only had credit cards for the past 2 years.

Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward,
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape
Valued Contributor
Posts: 1,738
Registered: ‎08-13-2012
0

Re: Close and app? Close and don't app? Don't close?

Don't closed . Only if its come with AF


Starting Score: 560
Current Score: 748 Wishlist: CSP, Simply Cash, SPG, BOLD, INK, United MP,
Goal Score: 800


Walmart: 10k |Usaa: 8k|BCE: 13k| Amex: NSPL|Dis: 9.4k|Cap: 5.5k|CAP: 2k|CSP: 13.4k| Pen:4.5k

Valued Contributor
Posts: 1,914
Registered: ‎11-17-2012
0

Re: Close and app? Close and don't app? Don't close?


FutureBillionaire wrote:

I have a Kroger 123 rewards card that is terrible with rewards.  I have used it for balance transfers before, but the limit is only 5k.  I'm considering cancelling this card and apping for an Amex for backdating or getting a Chase Freedom.  It is one of my older accounts, but it is my understanding that account age accrues for closed credit cards.  I've only had credit cards for the past 2 years.


Personally, I wouldn't just close the account willy nilly, unless it has an annual fee. If it does, apply for the AMEX or Chase Freedom first, then cancel the Kroger. If it doesn't have an annual fee, just sockdrawer it! Let it age a bit more, and if you really want to never use it again, it may close on it's on in the future. Closed accounts will age for another 10 years until they drop off your report, but you lose that 5k that helps with your utilization. 5k is a great line, so you might as well keep it along with that new card limit Smiley Tongue

Capital One Quicksilver World Mastercard $20k | JCPenney Gold $10k | Shell Drive for Five $800 | Chase Freedom Visa Signature $9.8k | TD Bank Easy Rewards Visa Signature $5k | Chase Sapphire Visa Signature $10k | American Express Blue Sky $13.7k | Discover IT $14.5k | SavingStar American Express $14.8k | American Express BCE $11.3k

FICOS: EX 756 EQ 735 TU 752 VantageScore 3.0: EX 741 EQ 744 TU 745 Credit Sesame (EX) 748 Credit.com (EX) 792 CapOne (TU) 787 Quizzle (EQ) 749
Established Contributor
Posts: 652
Registered: ‎12-12-2012
0

Re: Close and app? Close and don't app? Don't close?

I have about 80k in available credit.  But, you do bring up a good point.  I would probably app for Amex and then close based on the advice I'm getting.

Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward,
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape
Epic Contributor
Posts: 25,552
Registered: ‎10-23-2007
0

Re: Close and app? Close and don't app? Don't close?

Did USBank take those accounts or sell them to BofA? I can't remember... but either way I thought many had luck with product changing this after the move to whichever bank it was.

Fico Scores: EQ- 670., TU 710 Sync, EX 728 SoFi(05/04/15)
I'm just trying to catch up to RON1
95 Cards and Counting Smiley Tongue
Valued Contributor
Posts: 1,673
Registered: ‎11-11-2012
0

Re: Close and app? Close and don't app? Don't close?


daybreakgonesXe wrote


Closed accounts will age for another 10 years until they drop off your report,


That what we hear, but see http://www.bankrate.com/finance/credit-cards/closing-credit-card-dings-credit-score-1.aspx, an interview with a Fico product manager.  He says:

 

An account that is open with a good history can stay on forever -- it could stay on for 20 years. The bureaus will automatically remove (a closed account) in 10 years, but that could be removed sooner if that credit card issuer decides to remove it. Once it's closed and paid off, that account then becomes inactive, and it's not uncommon for the credit card issuer after a few years or even sooner to just delete that completely, just purge it from their records.

 


So 10 years after closure is the maximum, could go sooner.

 

Lots of interesting questions in that article that are asked here all the time.  Answers are from a scoring perspective only of course!

 

 Will closing lesser-used low-credit limit (less than $5,000) credit cards or lines of credit harm or help our overall credit scores, given two or three other higher-limit accounts?  (You are never penalized score wise for having too much credit, whether closing hurts depends on utilization)

 

Is there a difference between the issuer canceling the card versus you closing it yourself? (No difference at all in scoring)

Does it impact your score any less to close a department-store card versus a bank credit card? (No,except in credit mix.  If you close all your dept stores ones, it will hurt.  Also, if you have only one type, bank vs store, better to have bank)

 

 

Valued Contributor
Posts: 1,914
Registered: ‎11-17-2012
0

Re: Close and app? Close and don't app? Don't close?


bs6054 wrote:

daybreakgonesXe wrote


Closed accounts will age for another 10 years until they drop off your report,


That what we hear, but see http://www.bankrate.com/finance/credit-cards/closing-credit-card-dings-credit-score-1.aspx, an interview with a Fico product manager.  He says:

 

An account that is open with a good history can stay on forever -- it could stay on for 20 years. The bureaus will automatically remove (a closed account) in 10 years, but that could be removed sooner if that credit card issuer decides to remove it. Once it's closed and paid off, that account then becomes inactive, and it's not uncommon for the credit card issuer after a few years or even sooner to just delete that completely, just purge it from their records.

 


So 10 years after closure is the maximum, could go sooner.

 

Lots of interesting questions in that article that are asked here all the time.  Answers are from a scoring perspective only of course!

 

 Will closing lesser-used low-credit limit (less than $5,000) credit cards or lines of credit harm or help our overall credit scores, given two or three other higher-limit accounts?  (You are never penalized score wise for having too much credit, whether closing hurts depends on utilization)

 

Is there a difference between the issuer canceling the card versus you closing it yourself? (No difference at all in scoring)

Does it impact your score any less to close a department-store card versus a bank credit card? (No,except in credit mix.  If you close all your dept stores ones, it will hurt.  Also, if you have only one type, bank vs store, better to have bank)

 

 


Thats some grade A information! Fantastic to know, thanks for posting that!!!

Capital One Quicksilver World Mastercard $20k | JCPenney Gold $10k | Shell Drive for Five $800 | Chase Freedom Visa Signature $9.8k | TD Bank Easy Rewards Visa Signature $5k | Chase Sapphire Visa Signature $10k | American Express Blue Sky $13.7k | Discover IT $14.5k | SavingStar American Express $14.8k | American Express BCE $11.3k

FICOS: EX 756 EQ 735 TU 752 VantageScore 3.0: EX 741 EQ 744 TU 745 Credit Sesame (EX) 748 Credit.com (EX) 792 CapOne (TU) 787 Quizzle (EQ) 749
Established Contributor
Posts: 652
Registered: ‎12-12-2012
0

Re: Close and app? Close and don't app? Don't close?

US Bank took over the Kroger card.  I didn't even think of a product change.  Thanks for the tip!

Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward,
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape
Established Contributor
Posts: 652
Registered: ‎12-12-2012
0

Re: Close and app? Close and don't app? Don't close?

That bankrate article had good information. Thanks for sharing!

Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward,
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape
Established Contributor
Posts: 560
Registered: ‎09-29-2012
0

Re: Close and app? Close and don't app? Don't close?

What Amex would you app for?

 

Why do you want/need another card? 

 

 

Why do you want/need another card when you got 80K in aval credit?

 

 

You already got 12 cards.  How many do you need?  How much aval credit do you need?

 

 

My advice, only get credit that you need and not want.  And there will be a time to cut Kroger loose if you don't need it.  But closing Kroger will before you app won't really do anything to help approval chances.

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.