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Valued Member
Fenerbahce
Posts: 40
Registered: ‎04-18-2008

How Do I Proceed From Here?

I've been a member of these forums for a while but have not posted much, did a lot of reading and rebuilt my credit to where I am today. I always wanted to have about 5-6 good credit cards with good limits and do away with the low limit cards I'd gotten when I was in rebuilding mode. Now I have the cards I wanted; Amex Delta Gold, Amex Blue Cash, Chase Sapphire, Penfed Platinum Rewards, BofA Platinum Plus...what do I do about the lower limit cards that I have open?

 

I have already closed 2 of the lower limit cards but currently have about another 5 cards with limits from $1,500-$3,000 I'd like to get rid of. What would you folks that have gone through this recommend? I really do not want 9 CC's revolving, it's more than I need and harder to keep track of. Should I gradually or at once close all these lower limit accounts that I have. BofA is the oldest revolving account on my file and I recently got the limit raised from the initial $500 they gave me 5 years ago to $10,000, so I will be keeping this one for account age...Amex's have backdated to 2008...The Penfed and Chase will be the newer accounts, any recommendations?

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Valued Contributor
Repo-ed
Posts: 2,953
Registered: ‎02-09-2012

Re: How Do I Proceed From Here?

if util is at 0%, then close the ones you do not need.
Established Contributor
jamie123
Posts: 746
Registered: ‎03-22-2012

Re: How Do I Proceed From Here?

I would suggest keeping them open. Just sock drawer them until a lender decides to close them for non-use. This is of course as long as they don't have an annual fee.

 

This is the positive reasons to doing it this way:

 

Some lenders may let these cards ride for years before closing them.

Your base of good credit remains large and if, heaven forbid, something should happen to negatively impact your scores it will be diluted by the good credit these cards will provide.

You already took the hit with hard pulls getting this credit, why just throw that away now?

It makes no difference to your scores if you close the account or the lender closes the account in good standing.

 

There really aren't any negatives to leaving them open.



Starting Score: EQ 658 6/18/12
Current Score: EQ 665 7/21/14 - EX 687 7/21/14 - TU 682 7/21/14
Goal Score: EQ 720+
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Established Contributor
linux007969
Posts: 580
Registered: ‎04-20-2012

Re: How Do I Proceed From Here?


Fenerbahce wrote:

I've been a member of these forums for a while but have not posted much, did a lot of reading and rebuilt my credit to where I am today. I always wanted to have about 5-6 good credit cards with good limits and do away with the low limit cards I'd gotten when I was in rebuilding mode. Now I have the cards I wanted; Amex Delta Gold, Amex Blue Cash, Chase Sapphire, Penfed Platinum Rewards, BofA Platinum Plus...what do I do about the lower limit cards that I have open?

 

I have already closed 2 of the lower limit cards but currently have about another 5 cards with limits from $1,500-$3,000 I'd like to get rid of. What would you folks that have gone through this recommend? I really do not want 9 CC's revolving, it's more than I need and harder to keep track of. Should I gradually or at once close all these lower limit accounts that I have. BofA is the oldest revolving account on my file and I recently got the limit raised from the initial $500 they gave me 5 years ago to $10,000, so I will be keeping this one for account age...Amex's have backdated to 2008...The Penfed and Chase will be the newer accounts, any recommendations?


Call BofA and ask to pc to Cash Rewards (non sig) so you can get some cash back. They are nice and will just give it to you. If you would see if you could take the limit from your Amex Delta and move it to your Amex Blue Cash so you can close the Amex Delta, and by doing that you will avoid having to keep paying the $95 annual fee.

Discover IT TU Score: 739 as of 4/20/14 | TU Score as of 1/5/14 - 710 | EQ Score as of 1/5/14 - 748 | Ex Score as of 1/5/14 - 728
TU Score as of 1/5/14 - 705 | EQ Score as of 1/5/14 - 721 | Ex Score as of 1/5/14 -753 |

Capital One QuickSilver MC $4.5K | Amazon $1.8K (CLOSED) | Walmart $5K | Paypal SC w/Debit card $5K | BOA 123 Cash Rewards Sig $5K | BOA BBR $1K | Discover IT $8K | AMEX Sr Green Charge (NPSL) | PNC CashBuilder $1.5K | Paypal Extras MC $5k | PNC Auto Loan $20,038.75 |
Valued Member
Fenerbahce
Posts: 40
Registered: ‎04-18-2008

Re: How Do I Proceed From Here?


linux007969 wrote:


Call BofA and ask to pc to Cash Rewards (non sig) so you can get some cash back. They are nice and will just give it to you. If you would see if you could take the limit from your Amex Delta and move it to your Amex Blue Cash so you can close the Amex Delta, and by doing that you will avoid having to keep paying the $95 annual fee.


Yeah didn't even think about the ladder, that's a great idea to avoid the fees...have they been known to combine limits like that? BofA customer rep did tell me she would upgrade to the cash back card so I will be able to benefit from it. Thanks for the heads up!

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Established Contributor
linux007969
Posts: 580
Registered: ‎04-20-2012

Re: How Do I Proceed From Here?

[ Edited ]

Fenerbahce wrote:

linux007969 wrote:


Call BofA and ask to pc to Cash Rewards (non sig) so you can get some cash back. They are nice and will just give it to you. If you would see if you could take the limit from your Amex Delta and move it to your Amex Blue Cash so you can close the Amex Delta, and by doing that you will avoid having to keep paying the $95 annual fee.


Yeah didn't even think about the ladder, that's a great idea to avoid the fees...have they been known to combine limits like that? BofA customer rep did tell me she would upgrade to the cash back card so I will be able to benefit from it. Thanks for the heads up!


not sure if there known for combinding but i've seen people here suggest it on this forum before for accounts, so it's worth a try. Your Welcome! :smileyvery-happy:

Discover IT TU Score: 739 as of 4/20/14 | TU Score as of 1/5/14 - 710 | EQ Score as of 1/5/14 - 748 | Ex Score as of 1/5/14 - 728
TU Score as of 1/5/14 - 705 | EQ Score as of 1/5/14 - 721 | Ex Score as of 1/5/14 -753 |

Capital One QuickSilver MC $4.5K | Amazon $1.8K (CLOSED) | Walmart $5K | Paypal SC w/Debit card $5K | BOA 123 Cash Rewards Sig $5K | BOA BBR $1K | Discover IT $8K | AMEX Sr Green Charge (NPSL) | PNC CashBuilder $1.5K | Paypal Extras MC $5k | PNC Auto Loan $20,038.75 |
Senior Contributor
youngandcreditwrthy
Posts: 6,154
Registered: ‎08-16-2012

Re: How Do I Proceed From Here?

What if your total cls are > your income? Is it a better idea to close unused, low cl accounts at that point? I want to close my $1500 chevron cl. I just got it in January, which was a mistake. Lol
Marriott PR$25k | BCE $24.5K |BankAmericard Visa $25k| Wmt Discover $12.5k | BR Visa $12.5k | Amex Delta Gold $10k | Discover IT $10k | Paypal Extras MC $15k | Amazon Store $10k|Arrival $12.7k | Smile Gen $7.25k | Dillard's $5k| West Elm $4k| Express $3.05K | Mypoints.com Visa $4.5k | Freedom Visa $1k| Amex Surpass $1k
Senior Contributor
Wolf3
Posts: 3,198
Registered: ‎01-24-2010

Re: How Do I Proceed From Here?

Go ahead and close them, it won't hurt your score, and you already have a high credit score anyway.   You still have to keep track of open accounts you don't use, so why keep them open.  


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