How does combining CC accounts help ?

[Anonymous]

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@Sharingan wrote:
Although I can see how combining and consolidating limits could be useful, it's a convenice that I am very wary about using. Granted, lenders do consider your overall exposure limit with them; however, there are some that do still consider your cards with them on an individual basis. If they feel that you cannot manage a 30-50k card limit when the rest of your cards are around 1-10k, there's a chance that they may bring you back down to a level they are comfortable with. I'm sure this scenario also applies to those with much smaller credit limits as well.

I would never consider consolidating all of my Chase cards onto 1 because that single credit limit would greatly exceed that of any other card in my portfolio. Another example would be AmEx. They appear to be comfortable with a member having multiple 25k limits, but once you go over that on a single card, they get a little more apprehensive without supporting documents.

I'd be very curious to see how Capital One handles this feature going forward. They offered it once before in the past and eventually ditched it.

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AMEN BUDDY I ain't jumping on this bandwagon until some time has passed. I have a feeling in my gut these huge limits from combining two ventures etc will flop. Basically wasting inquiries.  Capital one is gonna be making a TON of money on folks who carry a balance and they know it. Handing out big limits so easily especially to those who arent qualified is a recipe for disaster. Don't get me wrong, no one is happier than me for the folks that work hard to repair their credit. Just saying theres always another side to this fairy tale.

I am glad for the folks though that had several cards, like a secured card, a capital one qs or two, or a platinum, to be able to combine to get the lowest apr then get the best features. Acutally I don't think it works that way. You couldnt take 3 cards, 1 secured card with a 1 k limit, 1 qs with a 1 k limit and 22.9 apr, and 1 platinum with 10 apr, and fabricate a 3k quicksilver with 10%apr?

[Anonymous]

Once I hit the spend bonus on my second Venture card I'm going to consolidate into my first one so I don't get hit with 2 annual fee's.

[Creditwiser]

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@yfan wrote:

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@Creditwiser wrote:

So now that the cats out of the bag and the Cap One combining cards thread has blown up, I'm curious to learn exactly how this benefits anyone interested in combining cards/limits.  Certainly for some with a much lower APR on one card would benefit, but how does it benefit someone thats rebuilding.  I have two QS1 with 4k on one and 3.5k on another.  How would this affect my scores, my AAoA, etc if I closed one card and had a 7.5k limit on the other ?

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Well, if you have 2 QS1s, aren't you paying an AF on each card? Combining would at least bring it down to only one AF.

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Actually no, a typo.  Two QS.  Good catch thanks.

[taxi818]

With all the cards out there. If I could just have 1 with a 100k limit. I would never need more. That's the goal in the end. It does not affect you AAOA. Because open or closed those accounts still there. Currently. Csp one allows 5 cards. So hence. I combine all current cards for 1 massive limit. Say 37k. Now there is room forb4 more cards and more combining. Since they have not set a ceiling. That's why the massive applications last night. As people see potential with venture giving 30k limits. Could have say 1 card at 90k. All with cap one. Even you can add them up. Hope you understand. The hysteria now. 

[ddemari]

Mostly I am excited about this because I want to apply for a venture and am at max capacity of capitalone cards. Now that I can eventually combine my limits and close a few cards, I can then apply for the card! 

[Anonymous]

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@GoldSorata wrote:

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@Anonymous wrote:

Agree!

I guess we'll just have to wait and see with people who already did it last night.  

My guess is that you probably want to keep the card that is the oldest.  Regardless, your AAOA will be affected, is just a matter of which card or cards you close (oldest or newest).  Scores? im not sure but it makes sense that they will take a dive? depending on how many cards you close?

Anyone?

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AAoA takes into account both open and closed credit lines. Closed accounts can stay on your reports for at least 10 years.

Edit: The link that takeshi74 provides explains it all.

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It is still NOT true that closing an account will have no impact on your AAoC until the closed account falls off in 10 years.  If I'm not mistaken, the closed account *ceases to age.*

Therefore, while closing an account will NOT decrease your AAoC, it will decrease the *rate* at which your AAoC increases.

[longtimelurker]

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@Anonymous wrote:

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@GoldSorata wrote:

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@Anonymous wrote:

Agree!

I guess we'll just have to wait and see with people who already did it last night.  

My guess is that you probably want to keep the card that is the oldest.  Regardless, your AAOA will be affected, is just a matter of which card or cards you close (oldest or newest).  Scores? im not sure but it makes sense that they will take a dive? depending on how many cards you close?

Anyone?

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AAoA takes into account both open and closed credit lines. Closed accounts can stay on your reports for at least 10 years.

Edit: The link that takeshi74 provides explains it all.

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It is still NOT true that closing an account will have no impact on your AAoC until the closed account falls off in 10 years.  If I'm not mistaken, the closed account *ceases to age.*

Therefore, while closing an account will NOT decrease your AAoC, it will decrease the *rate* at which your AAoC increases.

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There is certainly a potential impact when it drops off after about 10 years, but there are so many variables that far out (what cards you will have, negatives and positives, and what will FiCO 15 (or whatever) measure).

But closed accounts age for the purpose of AAoA.   The calculation simply depends on date opened and the date now

[Creditwiser]

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@longtimelurker wrote:

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@Anonymous wrote:

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@GoldSorata wrote:

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@Anonymous wrote:

Agree!

I guess we'll just have to wait and see with people who already did it last night.  

My guess is that you probably want to keep the card that is the oldest.  Regardless, your AAOA will be affected, is just a matter of which card or cards you close (oldest or newest).  Scores? im not sure but it makes sense that they will take a dive? depending on how many cards you close?

Anyone?

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AAoA takes into account both open and closed credit lines. Closed accounts can stay on your reports for at least 10 years.

Edit: The link that takeshi74 provides explains it all.

---

It is still NOT true that closing an account will have no impact on your AAoC until the closed account falls off in 10 years.  If I'm not mistaken, the closed account *ceases to age.*

Therefore, while closing an account will NOT decrease your AAoC, it will decrease the *rate* at which your AAoC increases.

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There is certainly a potential impact when it drops off after about 10 years, but there are so many variables that far out (what cards you will have, negatives and positives, and what will FiCO 15 (or whatever) measure).

But closed accounts age for the purpose of AAoA.   The calculation simply depends on date opened and the date now

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The comments have helped. Thanks all. It makes sense for the short term anyway. Long term I'm not too concerened on the subject. And there will be no negatives, after all,you need to keep in mind.......... I'm a member of this forum

[mcf]

super stoked about this, i had 3 cap one cards now one with a 10k limit on a 7.9 apr.. all three had af, now only 1, the 2 that got combined were an old orchard bank from way back and account central from way back.. had all these old cards that i didnt want to close. i consolidated them all to my oldest cap one card. this shouldnt hurt scores on some models, some models use all accounts, meanwhile, do some use only open?? Or is it ymmv?

[Anonymous]

Love this thread! Learn something new.