Closing 3 credit cards at once? Effect on score?

[mjb59463]

Hey everyone,
I currently have 3 credit cards that I just have no use for. I do not use them at all, having better, higher limit cards that I put my spending through, ones that reward me. I also feel as if I just have too many credit cards to manage, and that it is beginning to become overwhelming to me to manage them. I'm trying to really cut my expenses and like an opinion on whether or not this is the right thing to do.

The cards I wish to close are my US Bank Platinum card, my Sears Mastercard and my Best Buy credit card. The combined limit of these three cards is 1000 dollars.

Excluding these three cards, I have an overall credit limit total of 20,600. I am currently utilizing 3,485 dollars spread out over my other 8 cards

Those 3 cards I am considering closing currently have a 0 balance and I consider them really unnecessary. However, I don't want to hurt my credit score and have lenders decrease the limits on my active cards. Will this process do that, considering these are my three oldest cards?


Also, my plan in the long term is to get down to 7 cards total, and grow those 7 for a very long time. Those 7 cards are:

WF rewards card-2500 limit
CSP- 5000 limit
USBank Flexperks Rewards- 5000 limit
Barclay Apple- 3100 Limit
Discover- 1000 limit
Amex Delta- 2200 limit
Chase Freedom- 1100 limit.


These are honestly the 7 that I care about.

I was stupid applying for credit when I was younger, thinking more was better, and getting in over my head with too many cards. Over time (ASAP), I want to close 5 credit cards total. Is there a way to do this in a healthy manner?

All help is appreciated
Thank you

[ezdoesit]

I any real drop in score would be if those closed cards resulted in a much higher util.   Looking at the limits of those three cards I can't see it making much of a difference on your Util so I would just close then if they serve you no purpose.

[coldnmn]

The only way they would effect your score would be a little higher utilization. They will be included in your AAoA for up to 10 years. I think your current and future creditors will look positively on closing them. It lowers your DTI even though $1000 is small, it's still considered debt.

[mjb59463]

Thank you both for the prompt reply! 

Would it be okay to do this in one fell swoop? Or should I space it out a little? 

[coldnmn]

It wont matter any way you feel comfortable with it.

[mjb59463]

If that's the case, I'll call in to those card's respective CS departments on Monday!

[crjusaf]

Also, consider that 'number of accounts with balances' may have an impact on your score. For maximizing score it's generally believed that having 50% or fewer of your accounts showing a balance is best. Having a few extra accounts with a 0 balance certainly won't hurt.

That being said, if managing your accounts is becoming overwhelming closing them may be a great choice!

[BluePoodle]

Also to add to what others have already suggested, I am just wondering if any of the cards you currently have that you intend to keep could be up for a CLI?  That could help offset the loss and maintain your util%.  Just a thought....

I agree though, I think at some point it is too difficult or confusing managing a lot of cards, so congrats to you for cleaning house, so to speak.

[mjb59463]

Hey everyone, thanks for all your replies.

To answer both questions, I think for me, it is more about being able to manage the accounts without getting overwhelmed. And I would rather be the one to close them, instead of the card issuers for lack of activity.

To BluePoodle: I think I could get a CLI on Sears, US Bank and Best Buy I haven't been able to since I've had the cards, and I don't shop at those stores anymore enough to justify an even bigger account with them. I'd rather just get them out of the way, and focus on responsibly utilizing the credit I want to build.

[Tony275]

I just axed two of my cards (Comenity - HSN and J Crew) totaling $1800 in credit line. Once I pay off my Express card I'll be cutting that one as well, was dumb to take the shopping cart trick on them, hurt my AAoA. I'm looking to thin my profile for easier maintenance and maintain only prime cards at some point.

I'm in nearly the same boat as you (though my available credit is double yours, and my total balances is also double yours), was young and frivolous with my credit, thinking more was better, now I'm learning having the prime cards with rewards and low APR is a much better boat to be on.

You've already taken the AAoA hit, if you don't use it, I'd close it.