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Established Member
DeC
Posts: 18
Registered: ‎10-12-2012
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Helping the GF sort her credit problems/issues.

Hey all, Ive been doing really good myself with keping within my budget and using credit cards wisely lately. I see that my girl friend just charges everything. I made her sit down with me and run her credit to see what accounts she has open that she doesnt even know about. She has 16 open credit cards (2 AU's i belive from her sister), 2 loans (one credit union & car lease w/ WV). I dont feel she needs 100k in credit spending power. She has 20k balance with Amex, 2k balance with chase and small under $500 with say sears and or macys etc. I told her she should close SOME of the accounts that she doesnt ever use like, old navy, the home depot, bobs discount furniture store, ann taylor etc. Would it hurt her credit? She already has a car lease and a new morgage so she shouldnt need credit asap. I told her to keep the BoA card with 20k limit as a backup/emergency card. She said she is paying off her amex bill in full in Jan along with anything else she has. Longest accts are amex, macys, home depot (all opened in like 92 and 93)


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HoldingOntoHope
Posts: 1,057
Registered: ‎09-29-2009
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Re: Helping the GF sort her credit problems/issues.

The general consensus on these boards is that if a credit card does not have an annual fee then there is no reason to close it. Be aware that some creditors may close a card for non-use after a period of time but some don't seem to care. I had a friend who pulled her report to find out that a store card she hadn't used in almost twenty years was still listed as open. I believe that FICO scoring discounts them out of the equation when they have become dormant but it still adds to your average age of accounts and helps there.

 

If she has a need for additional credit at some point in the future and the lender insists on closing accounts then so be it. But other than that I don't see it as a concern myself.

Best financial advice I ever got: "Just imagine what an adult would do and do that."

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Dustink
Posts: 3,097
Registered: ‎10-02-2012
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Re: Helping the GF sort her credit problems/issues.

I would say, if she doesn't need it she should close it.

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:23    


     $17k       $8.5K          Closed          $19k      $6.5k        $24.2k        Closed         $5k       Closed     $8.5k        Closed      @2.49%
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webhopper
Posts: 7,225
Registered: ‎09-16-2011
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Re: Helping the GF sort her credit problems/issues.


HoldingOntoHope wrote:

The general consensus on these boards is that if a credit card does not have an annual fee then there is no reason to close it. Be aware that some creditors may close a card for non-use after a period of time but some don't seem to care. I had a friend who pulled her report to find out that a store card she hadn't used in almost twenty years was still listed as open. I believe that FICO scoring discounts them out of the equation when they have become dormant but it still adds to your average age of accounts and helps there.

 

If she has a need for additional credit at some point in the future and the lender insists on closing accounts then so be it. But other than that I don't see it as a concern myself.


+1   You gave her really bad advice... 
There's no way that I'd close an account that's been open since 1993.   Best advice, ask her if its possible for her to charge a small item every six months to keep those accounts active.


Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
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webhopper
Posts: 7,225
Registered: ‎09-16-2011
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Re: Helping the GF sort her credit problems/issues.


webhopper wrote:

HoldingOntoHope wrote:

The general consensus on these boards is that if a credit card does not have an annual fee then there is no reason to close it. Be aware that some creditors may close a card for non-use after a period of time but some don't seem to care. I had a friend who pulled her report to find out that a store card she hadn't used in almost twenty years was still listed as open. I believe that FICO scoring discounts them out of the equation when they have become dormant but it still adds to your average age of accounts and helps there.

 

If she has a need for additional credit at some point in the future and the lender insists on closing accounts then so be it. But other than that I don't see it as a concern myself.


+1   You gave her really bad advice... 
There's no way that I'd close an account that's been open since 1993.   Best advice, ask her if its possible for her to charge a small item every six months to keep those accounts active.


If she wants an Account Age boost, tell her to add some more Amex cards to her profile after her Amex is paid off.


Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
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Established Member
DeC
Posts: 18
Registered: ‎10-12-2012
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Re: Helping the GF sort her credit problems/issues.

shes keeping, amex, macys (amex), chase freedom, BoA and credit union card for now.


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webhopper
Posts: 7,225
Registered: ‎09-16-2011
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Re: Helping the GF sort her credit problems/issues.


DeC wrote:

shes keeping, amex, macys (amex), chase freedom, BoA and credit union card for now.


I'm sorry to hear that, as I think she should have kept her store cards....  too bad for her.


Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
Platinum Spade Garden Club Member: App Free since 1/1/13. No more apps til who knows when?
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