Reply
Highlighted
Regular Contributor
Posts: 140
Registered: ‎11-11-2011
0

Re: Do I have too many credit cards?

+1

Moderator Emeritus
Posts: 5,267
Registered: ‎03-18-2008
0

Re: Do I have too many credit cards?

Closing young accounts will eventually lead to an increased age of accounts - but not for a very long time.

 

Open and closed accounts are both factored into AAoA.  When an account in good standing is closed, it remains on one's credit report for as much as 10 years.

 

So, if you have 4 credit cards that are 10 years old and 4 credit cards that are 1 month old, your AAoA would be 5 years.  If you close those 4 young credit cards today, your AAoA will still be 5 years.  In a year, the AAoA will be 6 years.

 

After 10 years, assuming you don't open any new credit accounts, the 4 closed credit card accounts will fall off.  The AAoA will go from 15 years to 20 years with the disappearance of those previously closed "young" accounts.  But at 10 years, they wouldn't be young any more, and the overall effect of improvement of AAoA probably wouldn't make much of a difference in FICO scores.

Established Contributor
Posts: 734
Registered: ‎02-01-2012
0

Re: Do I have too many credit cards?

Sunshine,

 

You don;t need to wait to see if the average account will change. It WILL change. You can pull out a calculator and figure it out yourself. 

Start (Sept 2011): low-mid 600s. NOW: TU FICO: 801, EQ FICO 808, EX FICO 798 (PSECU). Goal: Achieved! Now Maintain!
Established Contributor
Posts: 734
Registered: ‎02-01-2012
0

Re: Do I have too many credit cards?

OhioCPA,

 

Yes. I see what you're saying. I am referring to accounts being DELETED. My bad.

Start (Sept 2011): low-mid 600s. NOW: TU FICO: 801, EQ FICO 808, EX FICO 798 (PSECU). Goal: Achieved! Now Maintain!
Regular Contributor
Posts: 140
Registered: ‎11-11-2011
0

Re: Do I have too many credit cards?


Lel wrote:

Closing young accounts will eventually lead to an increased age of accounts - but not for a very long time.

 

Open and closed accounts are both factored into AAoA.  When an account in good standing is closed, it remains on one's credit report for as much as 10 years.

 

So, if you have 4 credit cards that are 10 years old and 4 credit cards that are 1 month old, your AAoA would be 5 years.  If you close those 4 young credit cards today, your AAoA will still be 5 years.  In a year, the AAoA will be 6 years.

 

After 10 years, assuming you don't open any new credit accounts, the 4 closed credit card accounts will fall off.  The AAoA will go from 15 years to 20 years with the disappearance of those previously closed "young" accounts.  But at 10 years, they wouldn't be young any more, and the overall effect of improvement of AAoA probably wouldn't make much of a difference in FICO scores.



Yes, that is what I thought. I think there is a simple miscommunication or misunderstanding here... Smiley Frustrated

Regular Contributor
Posts: 140
Registered: ‎11-11-2011
0

Re: Do I have too many credit cards?


ztnjpv wrote:

OhioCPA,

 

Yes. I see what you're saying. I am referring to accounts being DELETED. My bad.


Oh, ha! Now I see where you're coming from.....

Moderator Emeritus
Posts: 5,267
Registered: ‎03-18-2008
0

Re: Do I have too many credit cards?

Just noticed the earlier comment about being removed as an AU on a young card.  In this situation, the account should disappear from one's credit report immediately, and the positive effect on AAoA should be instantaneous.

New Contributor
Posts: 58
Registered: ‎04-15-2009
0

Re: Do I have too many credit cards?

[ Edited ]

Further on that point, you may or may not have to actually ask the credit bureau to remove that item on your credit report.  Just check the report to make sure that it is off if it have a huge effect on your report and if you are planning to do any type of application.

 

If the card is old, there is really no reason to remove it, only remove the younger one if it impedes your ability to obtain new credit.  This means that if banks' calculator is telling them that you only can have up to 100k in total and you already have 105k, then you will need to get rid of a card to apply for the new card that you want.  The Best Buy card is the best example in my case as it takes up 5k worth of credit and I'm finding out that the credit lines for my newer cards are getting smaller and smaller even with a expanding income.  My family members are getting way bigger credit lines even though they have smaller income.

 

The other reason to cancel young cards is to churn the cards for signup points/miles.  So cancel, wait 2 years, rinse and repeat.

 

 

 

 

 

American Express SPG, Chase Freedom, Citi Forward, Citi Dividend World Elite, Discover More, Penfed Platinum Rewards, Kohls
Member
Posts: 8
Registered: ‎12-20-2009
0

Re: Do I have too many credit cards?

I have 10 more than you do...............(25). All serve a purpose......all are rotated and get used. My utilization is .25 percent on 133,675.00 total credit line. (credit available 133,250).

Use them responsibly.......pay in full almost always....leave one card showing a balance each month. Don't be tempted as to what you can buy.....and your credit score will soar. I believe and think it has actually happened to me....that creditors will see that if you can manage that many cards, and that much credit, and do it for a very long time, that you indeed are paying attention to your credit rating and live within your means. Be happy that you don't have to worry in any emergency......and that alone is a better feeling than having all the things you could acquire.

New Contributor
Posts: 184
Registered: ‎07-08-2012
0

Re: Do I have too many credit cards?

I'm not sure if you have too many cards but some of them are superfluous. Chase Amazon is pointless since you have the Citi Forward which gives you 5% on Amazon & restaurants (vs.Chase Amazon card's 3% on Amazon & 2% on restaurants; your Penfed gives you 5% on gas which beats Chase Amazon's 2% on gas.)

Regarding Bloomy's card- very difficult to buy much with a paltry $1500 limit plus since you have Amex BCE you get 2% back at Bloomy's which beats the 1.5% Bloomy's offers on their card ( 3 loyallist pts = 1.5% bc you need 5,000 pts for a $25 gift card.)

 

Citi Thank You $13,200 - Chase Freedom $3,100 - AMEX Zync NPSL (init. ability $17.5K) - Citi Forward $7,000 - AMEX BCP $6,000 - USAA Rate Adv $15,000 - USAA World MC $12,000 - Discover More $4,000 - Amex Hilton Honors $4,500 - Amex SPG $2,000 - Barclay's Priceline Rewards $6,400 - Chase Sapphire Pref. $7,500

EQ: 794. TU: 704. EX: 755
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.