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Regular Contributor
getmycreditright
Posts: 199
Registered: ‎05-23-2007

Closing my Orchard Bank CC

I got approved for a $300 CL in May. I expedited the card only to find out that it was a $300 limit. On top of that there was an AF of $59. So that was like $95 I owed on the card and I haven't even swiped it once. If I pay them off and cancel the card, how much of a ding will my score take? I figured my AAoA is already screwed, so cancelling shouldn't make a difference in that area.  What do you guys think?

 

FYI,  I already have a Cap One CC with a $500 CL that I've had for 3 years. No lates , no nothing.  My goal was to be able to get a well-known card with a $2500 limit, but I got antsy and applied for that card which was a HUGE mistake. Having TWO CC's with a $800 CL sucks to the ninth power.

-------------------------------------------------------------------------------------------------
Starting Score - 575 (4/10)
Current Score - EQ - 750, TU - 752, EX - 728 11/4/12

Current Cards:
AMEX SPG ($7.5k), Amazon.com Visa ($3k), Discover More ($2k) all since 11/4/12

Fighting the good fight!
Regular Contributor
Travis-84
Posts: 187
Registered: ‎05-07-2010

Re: Closing my Orchard Bank CC

If you cancel the account, it will stay on your credit report for 10 years, so AAoA will not change.

 

The only chance you will see is your utilitazion go up, if you have a balance on your other card. 

 

Personally, (assuming there are no monthly maintance fees), I would keep the card open until April, and call and see if they will waive the fee.  If they will waive it, then keep it open, but if they don't I would cancel it then.  You have already paid the annual fee, you should take it advantage of it for at least one year.

Moderator Emeritus
beamMEup
Posts: 4,473
Registered: ‎12-31-2008

Re: Closing my Orchard Bank CC


Travis-84 wrote:

If you cancel the account, it will stay on your credit report for 10 years, so AAoA will not change.

 

The only chance you will see is your utilitazion go up, if you have a balance on your other card. 

 

Personally, (assuming there are no monthly maintance fees), I would keep the card open until April, and call and see if they will waive the fee.  If they will waive it, then keep it open, but if they don't I would cancel it then.  You have already paid the annual fee, you should take it advantage of it for at least one year.


+1.

 

There's also an advantage to having two cards open.  FICO likes to see you report a balance on less than half of your accounts.  Having two accounts allows you to report zero on one, and a small (less than 9%) balance on the other. 

 

But, as Travis states, I would cancel the card before the second AF hits.  I actually liked Orchard as a rebuilder card - kept mine open just under a year.  Check out posts on these forums to learn how Orchard historically handles CLI's - they have their own little system.  As I remember, every three months call in for a CLI.  At one point they were handing out $100 per day - so you would call in daily until they said enough for now.  Then wait three months (or was it four?) and do it again.

 

Then, after six months+, I would look at app'ing for a more desirable card.  Let this one work for you. 

DH and I both found more pre-approvals after six months on the card.

Sorry about the fees upfront.  That's never fun - I think DH and I both were aware of the fees (he had more than I did) before we opened the cards.

Good luck to you - and don't get discouraged.  Soon your score will be even higher and you'll find a higher CL card that will take you in.

Just puttin' syrup on something, don't make it pancakes.
Regular Contributor
getmycreditright
Posts: 199
Registered: ‎05-23-2007

Re: Closing my Orchard Bank CC

Thank you both. I really appreciate the advice and kind words. I will hold on to it and see if any better offers come my way in the next 6-9 months. Thanks again! :smileyhappy:

-------------------------------------------------------------------------------------------------
Starting Score - 575 (4/10)
Current Score - EQ - 750, TU - 752, EX - 728 11/4/12

Current Cards:
AMEX SPG ($7.5k), Amazon.com Visa ($3k), Discover More ($2k) all since 11/4/12

Fighting the good fight!

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