Closing Paypal 2%?

[Anonymous]

Hello all, I have been browsing these forums for some time now, but today I am in need of some help deciding if this is the right move.  I have a relatively new credit profile, AAoA is 7 months but will go down once my BCE is reported.  I currently have:

-Auto loan, opened Jan 31 2017 (1 year)

-Discover it $2000 (SL 1000), opened Aug 17 (5 mo)

-Paypal 2% $700, opened Oct 9 (3 mo)

-Amex BCE $4000, opened Jan 19, 2018 (<1 mo)

I've been trying to get an increase on the Paypal limit for some time now, and they just will not approve it.  I read data points of others getting it after the 3rd statement, but no dice.  I think I would like to close it, with the other negative Synchrony stories, but would just like second opinions.  I know this will affect my credit age, but seeing as everything is new anyway, does it really matter very much?  Is age the only thing affected?

I would like to eventually replace it with a Penfed 2%.  Should I apply for that before closing it?  (Will probably not for a few months, I'm guessing my report is a little young for them right now.)  

Additonal info incase it helps: 20 years old, Transunion on last Discover statement was 708.  My auto loan is also not reporting to Experian, causing some annoying score discrepencies (no Experian Fico since I have 5 mo age without it).  Pay in full every month.

[HeavenOhio]

While there's a remote possibllity that the account could drop off of your report, it's highly unlikely. It's probable that it would continue to report for up to 10 years. In other words, don't worry about your AAoA. Also, because it isn't your oldest account, you don't need to be concerned about that either.

Because there isn't any rush to close, I'd apply for PenFed first. I hear that they're kind of sensitive to new accounts. There's probably someone here that can fill you in on when the time would be right.

[Anonymous]

I would not close the Paypal account, it's only 3 months old, allow at least 6 months to get a credit limit increase. Since you only have 3 credit cards, I would definitely not close it until you get another card to replace it.

[JR_TX]

I wouldn’t close it. Give it (or any card for that matter) at least 12 full months of usage and payments before you decide if it’s beneficial to you or not as far as growing the CL. I think Synchrony should be a great benefit to have so long as you “fly under their radar”. I only have 2 of their products and don’t intend to get another one. Also, don’t intend to get a super high CL in which my spending couldn’t justify.
In short, Synchrony can grow big time but would need patience especially to a new and thin credit profile like yours.

[Kree]

I'm a good bit older than you OP, so this advice comes from personal experience.

My oldest card is dropping off of my report in a few months. Not because I closed it 10 years ago, or the bank closed it 10 years ago.  There were no lates or high UTI usages. My credit was perfect, but the issuing bank was bought out. Suddenly my oldest account is closed, and a new account was added to my report.  Didn't think anything of it at the time, but I will take a 6 month AAoA hit when it drops, and at 5ish years that is not insignificant.  I probably took a 2 year hit when the other line opened, but I wasn't into credit at the time so I don't know exactly what my profile looked like.

You are correct that all of your accounts are young, and that Paypal will stay on your account for 10 years.  But what happens if Discover is suddenly bought out by Amazon in 6 months? Probably won't happen, but it might.   You profile takes a small hit, and 10-11 years from now two of your oldest accounts drop off.  Could be a major effect. Your Auto loan will go byebye in 12-17 years too.  

That being said, if you open up 10 more tradelines in the next two years, and no more after (not that I'm suggesting you do so), your AAoA would only drop a few months.  So my advice, is   hold off on closing for atleast a few weeks.  Keep reading and researching credit. Determine for yourself what you need to develop a strong profile that won't be negatively impacted in 10 years.

[UpperNwGuy]

Slow down.  You're in too big a hurry.  Rome wasn't built in a day, and neither will your credit portfolio.

[Anonymous]

When I was 20 I was happy with a $300 Cap One Platinum Credit.

Like what everyone says here.. U gotta let em age..

[FinStar]

^^This OP^^ Plus, no guarantees that you'd even qualify for a PenFed CC approval at this point in time.

[Anonymous]

Don't close it! Give it time to grow Good things do come to those who wait!

[Anonymous]

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wrote:

Hello all, I have been browsing these forums for some time now, but today I am in need of some help deciding if this is the right move.  I have a relatively new credit profile, AAoA is 7 months but will go down once my BCE is reported.  I currently have:

-Auto loan, opened Jan 31 2017 (1 year)

-Discover it $2000 (SL 1000), opened Aug 17 (5 mo)

-Paypal 2% $700, opened Oct 9 (3 mo)

-Amex BCE $4000, opened Jan 19, 2018 (<1 mo)

I've been trying to get an increase on the Paypal limit for some time now, and they just will not approve it.  I read data points of others getting it after the 3rd statement, but no dice.  I think I would like to close it, with the other negative Synchrony stories, but would just like second opinions.  I know this will affect my credit age, but seeing as everything is new anyway, does it really matter very much?  Is age the only thing affected?

I would like to eventually replace it with a Penfed 2%.  Should I apply for that before closing it?  (Will probably not for a few months, I'm guessing my report is a little young for them right now.)  

Additonal info incase it helps: 20 years old, Transunion on last Discover statement was 708.  My auto loan is also not reporting to Experian, causing some annoying score discrepencies (no Experian Fico since I have 5 mo age without it).  Pay in full every month.

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After three months you want to close a card because you haven’t got a credit limit increase? Slow down grasshopper. Credit is a marathon. Not a sprint. 2% cashback is really good for a general spend card. It takes time to work up to the prime cards. Garden a while. Let these cards grow. Show responsible use and pay all your bills on time. The cli’s will come after showing responsible use and time. While some cards may let you increase after 60 to 90 days. Others take six months or longer. With all these new accounts and very low average age you just need to let time get that average age up. There is no fee for the card so keep it. At least until you have a thicker well aged file. Good luck and you are off to a good start.