Closing Rebuilder Cards

[Anonymous]

I was approved for Amex Blue this week and thinking of closing down my 3 remaining sub-prime cards:

Cap1:  $750 opened 6/2010

Cap1:  $750 opened 8/2010

Merrick Bank:  $1000 opened 5/2011

I currently have:

Amex Gold opened 1/2012 (backdated to 1/1992)

Wells Fargo 3k CL opened 9/2011

Bofa Cash Rewards 1.5k CL opened 12/2011

Chase Slate 400 CL opened 2/2012

Amex Blue 3k CL opened 5/2012 (will be backdated to 1/1992)

Walmart 400 CL opened 5/2011

Kay Jewelers 3k CL opened 5/2011

Shell Gas 200 CL opened 5/2011

Thoughts on closing the sub-prime cards?

[Anonymous]

What I would do is wait till the AF comes due and then close it.  By law you have 30 days after you are billed for your AF to close it and not have to pay it.  You already paid for a years worth of the card, you may as well get what you paid for.  If you did close your 3 rebuilders and have not made any new charges on your other cards, once the AMEX Blue reports your util should actually go down a little bit.

I am not famaliar with Merrick, but I can guess that your Cap1 cards charge 19-59 AF each.

You might want to hit Shell up for a CLI.  I just doubled my CL on my Phillips 66 and it was a SP.  I had the card for 13 months just like your Shell.  Both cards are underwritten by Citi (I recently got a Shell).  I am surprised that Walmart CL has not increased for you, unless you hardly use it.

[bichonmom]

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@Anonymous wrote:

I was approved for Amex Blue this week and thinking of closing down my 3 remaining sub-prime cards:

Cap1:  $750 opened 6/2010

Cap1:  $750 opened 8/2010

Merrick Bank:  $1000 opened 5/2011

I currently have:

Amex Gold opened 1/2012 (backdated to 1/1992)

Wells Fargo 3k CL opened 9/2011

Bofa Cash Rewards 1.5k CL opened 12/2011

Chase Slate 400 CL opened 2/2012

Amex Blue 3k CL opened 5/2012 (will be backdated to 1/1992)

Walmart 400 CL opened 5/2011

Kay Jewelers 3k CL opened 5/2011

Shell Gas 200 CL opened 5/2011

Thoughts on closing the sub-prime cards?

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It won't affect your AAoA until it falls off in 10 yrs. But your oldest acct besides the Cap Ones are barely 1 yr old. Backdating helps your AAoA, but does not give you those years of history. Creditors like to see more than 1 yr of active/open history on an acct.

I also have a $500 Cap One w/no AF that I've been thinking about closing. Finally decided to leave it open for 1 more year, since I'm in the same situation as you -- longest history is just under 1 year w/o the Cap One.

@Also, there are some CCs you can get CLIs w/SP. Have you tried Walmart? You've had it for a year. If your util is low, I'd think you could get a CLI. And you can CLI Amex @ 61 days w/SP. (I waited a day or 2 longer, just to be sure.) You can ask for 3x current Amex CL. They'll counter if you don't qualify for the entire 3x.

Getting CLIs w/help w/util. And closing CCs can increase your util since it removes those CLs from your util calc.

[Anonymous]

I've tried numerous times to get a CLI with Walmart, but denied.  I really never use the card!  Should I try again?  I closed Merrick Bank this morning.  So I will keep Cap1's open for another year.

[Anonymous]

GE tends to be more liberal with their CLIs when the card shows usage, that explains why you have not gotten any love from them.  The interest rate on those store cards is INSANE (Crazy Eddie reference), so I only use mine for balances I pay off at the end of the month or 0% offers.  Depending on your rewards program on other cards you may want to throw some purchases on your Walmart card and just pay them off at the end of the month or take advantage of 0% offers when available.  Last year Walmart had 0% on all purchases made in Nov and Dec, for six months.  I think it was within 2 years and my Walmart went from 600 to 1500 and then finally they offered me an upgrade to Walmart Discover and another CLI to 3500.  So it is not a bad deal to use the card

JCPenny through GE gave me a nice increase when I was using the card for a number of things after I first got it.  Then it sat for a year and when I tried to get an increase I was denied, the reason was: not enough payment history.  Took advantage of a 0% offer around Xmas for a new comforter I needed and a few months later I got a nice CLI on the card.

Just a few of my experiences, YMMV

[Anonymous]

Thanks for helpful advice.  I may keep the Cap1 open for awhile.