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Valued Member
Posts: 45
Registered: ‎11-04-2008
0

Do I do it (finishing credit building)

I'm 26 and on the end of my credit-building binge.  I have recently added a few good cards to my mix: Kohl's, Alliant Platinum Rewards, Citi American Airlines.  In addition, I will have a auto loan with PenFed reporting within the next month.

 

I'm getting to the end of credit building and am looking to transition to a gardening process.  However, I am thinking about applying for the Discover Open Road card as my last card.  Also, I am thinking about closing my 3 lowest limits: GM Flexcard, Chase BP Visa, and HSBC Discover Direct Rewards.  

 

I'll have about 13-14 cards but always PIF and carry low util.  Should I app for the Discover card before the other inquiries and new accounts hit?  Finally, should I close those 3 smallest card limits to cut down my revolving lines?

FICOs (4/7/09): TU-749 (WOW!); EQ-698; EX-?

FICOs (as of 11/1/08): TU-690, EQ-678, EX-646

FICOs (3/13/09): TU-698; EQ-696; EX-662
Moderator Emerita
Posts: 28,098
Registered: ‎04-01-2007
0

Re: Do I do it (finishing credit building)

What will the Discover do for you that your current cards can't? Will this (whatever it is) cancel out the negative effects of another new card and lowering your AAoA? I'm not saying it won't; I'm just saying balance out the positives and negatives.

Same for closing the other cards. I have no problem with closing cards that aren't working for me --like you, I'm a bit overloaded at the moment (currently 11 open CC's, a mortgage, a HELOC, and an auto loan.) Just be aware of all the implications first. Be sure to read fused's Closing Credit Cards first.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Valued Member
Posts: 45
Registered: ‎11-04-2008
0

Re: Do I do it (finishing credit building)

Yea, there are no annual fees with them so it isn't a big deal.  Also, they are all relatively young accounts (about a year old) so it wouldn't impact my AAoA too much either.  Another part of me just doesn't want any future potential creditors seeings those 3 cards with relatively low limits.
FICOs (4/7/09): TU-749 (WOW!); EQ-698; EX-?

FICOs (as of 11/1/08): TU-690, EQ-678, EX-646

FICOs (3/13/09): TU-698; EQ-696; EX-662
Moderator Emerita
Posts: 28,098
Registered: ‎04-01-2007

Re: Do I do it (finishing credit building)

I closed my Barclays Barnes and Noble MC because a CSR let slip that it was not eligible for customer-initiated CLI requests. It was at a whopping $500, and it wasn't doing anything magical for me, and I had enough available credit elsewhere that I don't think that they would have been particularly generous in the future.

I had instituted a personal guideline that I wanted all store cards to be 4-digit CL's, and this one didn't fit, so out it went.

And I do think that there is a lot of evidence that future lenders will give you the stink-eye for having low-limit cards. As these are all young cards, I don't see any harm in closing them (as long as you stay aware of the util implications.) You'll have them for ten more years anyway, and at that point, your credit history should be solid enough that their disappearance shouldn't hurt.

Just be sure to leave on good terms. You never know when you might want to cross back over that bridge again.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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