Financial freedom achieved! Should I close one card?

[jritch]

Hi guys

Long time reader of the boards, first time poster. Thanks to the countless advice of these forums, I've gone from financial fumbles to freedom. I'm currently 30, and made some silly mistakes in my early 20's. Since last year I've gone from a 620 to 784. Was about $12k in cc debt with high interest rates. I was able to finally pay off my last bill last month. I went from a utilization of 90 to 1%. It feels good.

I currently make 92.5k and recently moved to NC from Chicago so the cost of living differential has helped tremendously. Today was a good day. I was approved for a Chase Sapphire Proffered 8k CL and Amex Platinum. I love travel [and I also do a lot of it for work], so I feel like I will maximize the points + benefits with those 2 cards. 

I currently have:

Amex Blue Cash [which is my oldest card for 2001] with a $5,600 limit [I was oddly denied CLI last week, I think because UTL rate didn’t hit CR]

Barclays Apple Card $3,700 limit from 2009

Orchard Bank MC $1,700 limit from 2004

I really do not want the Orchard card anymore. It provides no value to me, I haven't had a CLI and I'm not a fan of Capital One. Do you think it would be wise to close that account at this point? Any feedback would be much appreciated.

Thanks so much!
J

[PetRaccoon]

In the short term, if you're not planning to jump your UTIL, then I think go for it.

With an AMEX from '01 I wouldn't really be worried about AAoA, you can always open another one to take adavantage of backdating.  I'd open a new amex for UTIL rather than a CLI personally, it'll help your AAoA while you're at it.

The only consideration that I'd take into account is that you don't have many accounts currently.

I haven't given any advice in a while, and I'm sure people will correct me if I'm wrong.

-Pet

[ObeyJohnny12]

Congrats on paying down debt. Such a great feeling of relief.

You have some pretty solid cards and as for orchard i would leave it open as long as it doesn't have an annual fee. Also helps for util purposes that is if you don't plan to get into high debt again.

Congrats again.

[PetRaccoon]

I think all Orchard cards have fees, which is why I said go for it, otherwise I'd keep it.

Not really sure though.

That and HSBC is really stingy with the CLI, have a card for 3+ years now, nothing, and they want to HP for it..

[ryanbush]

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@PetRaccoon wrote:

I think all Orchard cards have fees, which is why I said go for it, otherwise I'd keep it.

Not really sure though.

That and HSBC is really stingy with the CLI, have a card for 3+ years now, nothing, and they want to HP for it..

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Great story, like yourself I also just got my credit back into good shape and a few good cards...  I called Orchard and talk them my situation and let them know i would like to keep the card but didn't want to pay the fee....  they waived for this year so i just left it open (mine has 2% CB on everything).  I have my iPad data account, my cable/internet, and my gym membership set to auto pay on that account...   I will just PIF every month and get about 50$ this year just for leaving it open.

[jritch]

The Orchard Bank card that I aquired in '04 had no fee's associated with it.

Like I mentioned, I just feel like it provides no value. Because of of the low CLI, I don't think it would ding me on utlization to cancel because I was just approved for an 8k CSP card. Though it appears it would hurt me only on AAoA, correct?

Would it be possible to call Cap One and ask them to updgrade the card to a prime cc with better APR/benefits? I may consider that.

Thanks!
Jason

[ryanbush]

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@jritch wrote:

The Orchard Bank card that I aquired in '04 had no fee's associated with it.

Like I mentioned, I just feel like it provides no value. Because of of the low CLI, I don't think it would ding me on utlization to cancel because I was just approved for an 8k CSP card. Though it appears it would hurt me only on AAoA, correct?

Would it be possible to call Cap One and ask them to updgrade the card to a prime cc with better APR/benefits? I may consider that.

Thanks!
Jason

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Capital One isn't servicing the HSBC cards just yet, I called the EO last week to get some stuff done and they said it would be a few more months.  It is really not hurting you at all to leave that account open if there are no fees associated with it.  if anything just throw the card in a old drawer and forget about it, having an account open that long looks really good to creditors and surely helped with Chase looked over your application for the CSP

[PetRaccoon]

The time that you've accured so far on the card will stay there for 10 years, just that the card wont age any further.

AAoA isn't the biggest thing I'd worry about with the Amex as I said earlier, you should be OK in that department.

But if it has no fees, you might as well sockdrawer it and buy a stick of gum every few months to keep it active, its not going to hurt you in anyway to do so without the fee.