Closed Merrick Bank Credit Card & Fingerhut! Question about Average Limit

[Anonymous]

I'm feeling good about the fact that I closed my Merrick credit card today.  Although I just received an increase on the card, I was unaware that I was being charged $3 per month for the card.  I don't want to pay for credit since I'm beyond that point.  I also closed my tiny little Fingerhut card that I have no clue why I accepted.  My question is..will it change my average credit card limit?  Merrick was $1500 and Fingerhut was $300.  Thank you in advance for any help.

[Anonymous]

I'm going to assume that the question is really about future limits that you might receive. We've generally seen a correlation between your existing limits and the new limits you receive. There is some speculation that this is because CCCs want to be competitive with each other. Based off of that, I wouldn't expect your fingerhut card to have any effect. Depending on your other cards, your Merrick card might not matter either.

[Anonymous]

If your utilization supports the closure, you did a good thing. I'm not sure if a prime lender looks at subprime or store card limits to decide what they want to give you. But yes high limits from 1 prime lender seems to help with getting higher limits on other new cards or CLI on existing cards given your income levels support it.