Looking to cancel some cards.... What would you do?

[Anonymous]

Hey Guys!! So.... I did something silly. I went on an app spree and only apped for cards I knew I could get. I started with CLIs, then added a few store cards and then I got brave (due to the approvals) and apped for a few cards I wanted but that I didn't think I'd get approved for... but I did. So I am adding the new cards to my spreadsheet and I came to the realization that I have 26 open trade lines and most of them overlap when it comes to what I need  (mostly eating out and online shopping). I plan to cull the herd, not just sock drawer the cards because it freaks me out to have so much open credit, IDK if I can be responsible with it and think it's better to avoid the temptation. I am trying to come up with some sort of scientific or statistical method to decide what to get rid of.

I guess my first question is do I have to activate and then cancel some of these cards or will they close on their own if I don’t activate them? (PayPal MasterCard, Barclay Rewards, Victoria Secret store card, Overstock store card)

Next question is how do I decide what to cut? Do I leave my oldest accounts? Do I sort by APR? Do I keep a specific card because I only have 1 card with that bank?

If you have 2 or 4 or 6 cards that overlap when it comes to your spending how do you decide which to keep?

TIA!

[TrialByFire]

There's a lot to consider on this one and it's a highly subjective question by nature. If you're good with spreadsheets, add a column in there indicating the age of each account and if an AF is applicable. Obviously you'll want to try and keep older cards, given that they're still beneficial to you and your current spending habits. Narrow down what you really want to keep. Then play around with the age of the accounts you'll be keeping and go from there. If you would only lose a month or two, no big deal you can recover quickly. If we're talking about losing years worth of age, I'd strongly consider keeping it.

You have to consider your spending habits for sure. Do you PIF? If so that takes the APR discussion out of the mix. Maybe try to hang on to one low APR card for emergencies. Then look at which ones have AF that you don't use.

You don't have to activate the card to close it. If you're dead set on closing it, I'd go ahead and close it for security reasons and peace of mind.

[Anonymous]

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@Anonymous wrote:

I guess my first question is do I have to activate and then cancel some of these cards or will they close on their own if I don’t activate them? (PayPal MasterCard, Barclay Rewards, Victoria Secret store card, Overstock store card)

Ne

TIA!

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Your cards won't close automatically if you don't activate them.  The account is considered open the instant you are approved regardless of whether you activate the card or not.

[TrialByFire]

Trying to approach all angles I can think of but have you considered keeping what you got and asking for a CLD? I know that's a four letter word around here but it is an option.

[Anonymous]

I really did consider a CLD but the thought of having 20 $50 minimum payments due in one month scares me. LOL. I obviously have no impulse control.

[TrialByFire]

We've got to get a reign on that impulsive stuff, but at least you're willing to admit it lol
Definitely stay away from the CC approvals section. After you cull the herd, check out the garden thread there's lots of great support over there

[Anonymous]

I've been lurking in the garden for a bit so I will try. This time around it was a lot of cards I had previously been denied for and it was a bit of a power trip to see them be approved... then they showed up in the mail and my first thought was that I wouldn't ever use most of them. Ugh.

[amakol]

Some thoughts, and I'll be direct to make my message clear:

1. Don't think about history, age, whatever. This is misinformed advice. Close whatever you're not going to use. Closed accounts will stay on your credit report until 2025. Your AAOA won't suffer at all. Nowhere have I seen that average age of OPEN accounts is what matters, outside of credit karma. Utilization may go up but use it as a reason for bringing balances down. If you don't have a use for it based on your spending, cut it. If you have cards that overlap and you can't find one more useful than another, consider which banks grow fast (Amex, synchrony, discover in my experience) and which are slow (chase, Barclay). Others may have different experiences.

2. Stay off this site. I mean it. It's an excellent resource for when you're interested in the future. By all means frequent it then. But being constantly exposed to talks about credit limits, new approvals, credit scores, favorite plastic, etc will mean you will never be successful holding off if you don't have impulse control, as you mentioned. There's just too much temptation. Even the gardening thread is like alcoholics holding AA at a local bar. This becomes a new addiction for way too many. Though it's constructive to build credit, if it goes out of your control it can go down a slippery slope to messing your financial life.

You asked what I would do, so I said it exactly. Those 2 things. It may be tough, but it'll help you out the most when considering a long-term picture

[Anonymous]

I have never closed a credit card, so I don't know how bad the negative impact could be, but I personally don't open cards that can be used in a single store/hotel. So I would close all the store/hotel cards. Usually discounts that the store offers to everyone are better than what you get out of a credit card. Next I would close cards that have an annual fee. Note that those could be the ones with the highest credit limit, so I would think twice if it's one of your better cards.

Do you pay in full? If so, don't worry about APR since it will never matter.

[Anonymous]

Thanks guys, I think I have an idea of where to start now.