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Closing cards with high credit lines

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pipeguy
Senior Contributor

Re: Closing cards with high credit lines

I'm a big fan of thinning the herd of cards you no longer need or want for whatever reason (AF, high APR, no longer use, etc). Over the last year I've closed 10 or 12 cards with probably $100k of credit limits, no worries or scoring hits. Granted I still have 19 open accounts and way more credit than I need, with no issues - almost all of my open accounts are 5 digit credit limts, but that doesn't change the basic premise that if you don't need it close it and don't look back IMO. 

Message 11 of 21
bourgogne
Valued Contributor

Re: Closing cards with high credit lines


@longtimelurker wrote:

@omfgpart2 wrote:

@longtimelurker wrote:

@Anonymous wrote:
Because it has an AF, I'm not going to pay an AF for a card that I no longer use.

Right, some years back I closed a Citi AA card with a $30K limit as I couldn't justify the AF  (didn't know then how easy it was to get it waived).    But, in general, if nothing has gone badly wrong with your credit or the economy, if you had a high CL before you can get another more useful one fairly soon


you are very lucky to be able to close such a <cl card without thinking about it.  luck is not the right word but you get my drift.  for myself and many others one has to pay for credit, either in the way of fees or higher apr on a car lease, etc.  great that you played this game the right way and that you have choices that many only dream about


Not sure how unusual it is though.   While there are a lot of new rebuilders here, you see a lot of posters listing total CL in their sigs, often way above $100K  Losing say 20% of that isn't that big a hit if you PIF anyway


Unusual would not be the word I would use.  Fortunate is the word I would use.  Without question this board covers the gamut.  I have seen cl’s from $ 300 to close to 300K, it’s incredible.  Reading the baller/penfed thread just shows how diverse everyone’s situation is.  I felt totally humbled to get 10K in a visa where it seemed everyone was getting 2-3x that.  Then I remembered that I was one that put myself in my circumstance that that the lenders were only giving me what I deserved.  Anyhow I digress; I compliment you and the others that have taken this part of your life seriously and have choices as a result of it.

Message 12 of 21
kdm31091
Super Contributor

Re: Closing cards with high credit lines

Don't think it's anything to lose sleep over. Once you have several "good" cards with decent limits, the impact of closing one is very little to nothing if you pay in full monthly. I am totally in support of closing unwanted accounts
Message 13 of 21
Anonymous
Not applicable

Re: Closing cards with high credit lines


@Anonymous wrote:
I really liked having that credif line and wouldn't have closed it if there wasn't an AF. I also liked the idea of having an emergency BT card but it is Barclays. It is really time to start trimming the fat.

Hate to say it but you probably did yourself a favor if you closed a Barclay card.

 

Good luck with the "fat trimming."

Message 14 of 21
RonM21
Valued Contributor

Re: Closing cards with high credit lines

I think as long as you do what suits you that is what matters. If it makes sense for your current situation and you know it wouldn't hurt you in the long run, then do what you feel is best.


Total CL: $321.7kUTL: 2%AAoA: 7.0yrsBaddies: 0Other: Lease, Loan, *No Mortgage, All Inq's from Jun '20 Car Shopping

BoA-55k | NFCU-45k | AMEX-42k | DISC-40.6k | PENFED-38.4k | LOWES-35k | ALLIANT-25k | CITI-15.7k | BARCLAYS-15k | CHASE-10k

Message 15 of 21
Anonymous
Not applicable

Re: Closing cards with high credit lines

Thanks..I've got no regrets!
Message 16 of 21
Anonymous
Not applicable

Re: Closing cards with high credit lines


@pipeguy wrote:

I'm a big fan of thinning the herd of cards you no longer need or want for whatever reason (AF, high APR, no longer use, etc). Over the last year I've closed 10 or 12 cards with probably $100k of credit limits, no worries or scoring hits. Granted I still have 19 open accounts and way more credit than I need, with no issues - almost all of my open accounts are 5 digit credit limts, but that doesn't change the basic premise that if you don't need it close it and don't look back IMO. 


Recently did the same thing. Closed four cards with over $40k. Wasn't using the cards and wanted to cull the herd. Closed eight cards in 2009 so skinning down can be done. My scores have been in the 800's for a number of years and the impact was minimum. Thick file and I watch the utilization (try to keep it around 1%).

Message 17 of 21
red259
Super Contributor

Re: Closing cards with high credit lines


@Anonymous wrote:
We have decided it is seriously time to start purging. Any else have closing cards with high credit lines? We just closed an airline card with a 12,000 limit. I didn't bother trying to PC it, why keep another card that I to worry about charging every couple of months? I did have a hard time closing though. Not gonna lie.

One of my highest credit lines is 21.7k on a Hyatt card with chase. That is going to take a significant chunk of my available credit off my report if I end up closing it. I won't pay the AF just to keep a credit line open. However, since I'm pretty much done apping for Chase cards due to 5/24 I would like to be able to PC the card, but since its a co-brand I believe that is not allow. The only option I would have then is to move the credit line over to a freedom card if they allow it, which I wouldn't mind. 

;
Starting Score: EQ: 714, TU 684
Current Score: EQ: 725 7/30/13, TU 684 6/2013, Exp 828 5/2018, Last App 8/5/17
Goal Score: 800 (Achieved!) In garden until Sepetember 2019
Message 18 of 21
Anonymous
Not applicable

Re: Closing cards with high credit lines

Yeah I definitely move it over if you need it.
Message 19 of 21
Anonymous
Not applicable

Re: Closing cards with high credit lines

I felt so accomplished with a J Crew card at $8,800.  I didn't remember how high the prices were at the store until after I got the card.  Got tired of buying clearance items occassionally and then simply closed it.  I have an $8,500 CL on a Lowes card and quite honestly my Blispay gives me nearly the same options as Lowes but I think I'll keep the Lowes card.  Lowes is the only store card I have left.  My Visas and MC are all at the $5,000 CL area.  It feels like an accomplishment after starting out fresh at the age of 42.  Having 10 CC's at or above $5,000 lines makes me feel like I don't need a $10k or $20k card.  If you have these and can afford to close one then I would probably get rid of the dead weight.

Message 20 of 21
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