cancel
Showing results for 
Search instead for 
Did you mean: 

Just opened USAA Visa...should I close the USAA MC and AMEX BCE?

tag
GeneralCucumbre
Regular Contributor

Just opened USAA Visa...should I close the USAA MC and AMEX BCE?

So I was just approved for a USAA Rewards Visa and I am unsure as to if I should close my USAA Platinum MC (opened in October 2012) and my AMEX BCE (backdated to January 2009).  The interest rate on the USAA Visa I was just approved for is the exact same as it is on the USAA Platinum MC...so I figure I don't really need it since the Visa has rewards and has the same interest rate and higher limit.  The AMEX BCE I don't use at all...however, according to my CR, it is the oldest account.  

 

I am wondering if I have too many lines of credit open.  I know especially within the past 12 months, I have racked up some inquiries and my AAoA has taken a dive...I've opened 5 accounts (I have closed 1 of the 5) within the last 6 months.  I do plan to possibly purchase a home sometime in 2015.

 

So what should I do, should I close both the USAA Platinum MC and AMEX BCE?  On a side note, I do plan to close my newly opened Citi ThankYou Premier card after the first AF (will be in December) and depending on whether I think the ThankYou Premier card is worth it, I'll convert my older Citi ThankYou Preferred MC account into Premier.

 

Any and all comments, suggestions are greatly appreciated!

AMEX Green Corporate - NPSL | AMEX Everyday - $60,000
Chase Freedom Unlimited Visa Signature - $49,500 | Chase Freedom Visa Signature - $27,300 | USAA Platinum Visa - $26,000
Message 1 of 6
5 REPLIES 5
gdale6
Moderator Emeritus

Re: Just opened USAA Visa...should I close the USAA MC and AMEX BCE?

I see no reason to close anything at this point, I am a believer in you cant have too many cards. If your going to go for a house next year they may actually help you out in getting qualified for your loan.

Message 2 of 6
GeneralCucumbre
Regular Contributor

Re: Just opened USAA Visa...should I close the USAA MC and AMEX BCE?


@gdale6 wrote:

I see no reason to close anything at this point, I am a believer in you cant have too many cards. If your going to go for a house next year they may actually help you out in getting qualified for your loan.


True...however, I don't think I will have a problem getting a loan for a home but I am worried that too many open lines of credit might be seen as more of a risk and cause me to have a higher interest rate on that loan.

AMEX Green Corporate - NPSL | AMEX Everyday - $60,000
Chase Freedom Unlimited Visa Signature - $49,500 | Chase Freedom Visa Signature - $27,300 | USAA Platinum Visa - $26,000
Message 3 of 6
Leadberry
Established Contributor

Re: Just opened USAA Visa...should I close the USAA MC and AMEX BCE?

Just out of curiosity, why do you prefer the USAA cards over the BCE?  USAA's rewards structure is terrible in general, let alone compared to the BCE.  I support the idea of closing accounts you never plan on using, but I would think the BCE is one of the better rewards cards in your wallet.

   
FICO Scores 800+
Message 4 of 6
coldnmn
Mega Contributor

Re: Just opened USAA Visa...should I close the USAA MC and AMEX BCE?


@GeneralCucumbre wrote:

@gdale6 wrote:

I see no reason to close anything at this point, I am a believer in you cant have too many cards. If your going to go for a house next year they may actually help you out in getting qualified for your loan.


True...however, I don't think I will have a problem getting a loan for a home but I am worried that too many open lines of credit might be seen as more of a risk and cause me to have a higher interest rate on that loan.


Another way of looking at it if you have low utilization it shows you handle credit responsibly.

Discover IT $17k / US Bank Ace (VSig) $13.5K / US Bank Cash+ (VSig) $13.5k
Sam's Mastercard $15k / Walmart Mastercard $10k / Blispay $7.5k PayPal Ex MC $10.8k
CareCredit 5k / Husq $5k / Cap1 QS $4.5k / Barclay Ring $5.35k / Citi DC (WMC) $12k
Gardening Date 7/01/16 / MyFico 08: EQ 801 / TU 777 / EX 771 / 06/08/17
Message 5 of 6
takeshi74
Senior Contributor

Re: Just opened USAA Visa...should I close the USAA MC and AMEX BCE?


@GeneralCucumbre wrote:

 

I am wondering if I have too many lines of credit open.  I know especially within the past 12 months, I have racked up some inquiries and my AAoA has taken a dive...I've opened 5 accounts (I have closed 1 of the 5) within the last 6 months.


That's up to you to determine.  There's no "X is too many" that applies to everyone.  You need to decide based on what you can reponsibly manage, what you need/want and your goals and priorities.  Some use the strategy of keeping as many accounts open as possible.  Some prefer closing accounts that are no longer useful.  It's not a one-size-fits-all matter and you have to do what works for you.

 

Closing accounts will not help your AAoA.  The impact from the inquiries won't be an issue once they're over a year and at two years they'll fall off.

 

What you don't seem to be considering is utilization.  Utilization changes due to account closure will immediately affect your credit.  Make sure you calculate your utilization changes before making any decisions.

 


@GeneralCucumbre wrote:

True...however, I don't think I will have a problem getting a loan for a home but I am worried that too many open lines of credit might be seen as more of a risk and cause me to have a higher interest rate on that loan.


You'd have to verify that with the creditor that will handle your mortgage.

Message 6 of 6
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.