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Low credit limit is not a good reason to close credit cards

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atarvuzdar
Established Contributor

Re: Low credit limit is not a good reason to close credit cards

I'll gladly close a card with a REALLY low limit (some would say all of my cards have low CL's and I respect that). It took exactly one creditor asking me about my $100 Macy's limit (after unsuccessful attempts to get a CLI) for me to close it.

 

ETA: Once Orchard completes the switch to Cap One I'll probably close my Orchard card too if I can't get Cap One's EO to raise the limit.

FICO 8: EQ 846 / TU 836 / EX 832
AMEX Platinum / BofA Cash Rewards Visa Sig $99,900 / Chase CSR $43,400 / Citi Double Cash $39,600 / AMEX EveryDay $30,000 / Discover It $26,000 / Gemini $25,000 / JetBlue $25,000 / Chase Freedom Unlimited $22,500
Message 41 of 50
clocktick
Valued Contributor

Re: Low credit limit is not a good reason to close credit cards

Disagree (well, except for certain store cards).  If I'm not really going to use it, I don't want to have it - I don't need a collection.  There comes a point in time when some just stop caring about AAoA and keeping oldest cards.  I probably would've answered differently a few years ago.  Some of you may answer differently years from now.

11/30/08 TU 648 EX 672 EQ 656 SEPT 2014 TU 787 EX 789 EQ ???
Amex BCP $24.1K/Clear $8.5- Sallie Mae $27.5 -Cap One QS $7.5 - Chase Freedom $7.5/United $5k/CSP $20k/Ink- Citi DP $9.5/Dividend $13k/HHHx2 $15k/16.4/Reserve $4.5k Best Buy $1940 HD $1701- Discover IT $15k - Elan $8k GEMB Lowes $20k - Macy's $2k - Kohl's $800




Starting Score: 648
Current Score: 736
Goal Score: 765


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Message 42 of 50
Open123
Super Contributor

Re: Low credit limit is not a good reason to close credit cards


@atarvuzdar wrote:

I'll gladly close a card with a REALLY low limit (some would say all of my cards have low CL's and I respect that). It took exactly one creditor asking me about my $100 Macy's limit (after unsuccessful attempts to get a CLI) for me to close it.

 

ETA: Once Orchard completes the switch to Cap One I'll probably close my Orchard card too if I can't get Cap One's EO to raise the limit.


Up to a certain point (approx $100k - $150K total CL), higher limits certain begets higher limits with very little exceptions.  

Message 43 of 50
webhopper
Moderator Emeritus

Re: Low credit limit is not a good reason to close credit cards


@Open123 wrote:

@atarvuzdar wrote:

I'll gladly close a card with a REALLY low limit (some would say all of my cards have low CL's and I respect that). It took exactly one creditor asking me about my $100 Macy's limit (after unsuccessful attempts to get a CLI) for me to close it.

 

ETA: Once Orchard completes the switch to Cap One I'll probably close my Orchard card too if I can't get Cap One's EO to raise the limit.


Up to a certain point (approx $100k - $150K total CL), higher limits certain begets higher limits with very little exceptions.  


I agree with this!

FICO 9:
Filed Chapter 13 on 6/1/2017 after job loss. Discharged 6/1/2022.

Goal: Gardening!


Message 44 of 50
Wolf3
Senior Contributor

Re: Low credit limit is not a good reason to close credit cards

Agree.   It is not a good reason on its own.   It can contribute to other good reasons to close a carrd.   

Message 45 of 50
jetsfan2013
Frequent Contributor

Re: Low credit limit is not a good reason to close credit cards

It depends where you are with credit. For someone rebuilding, you may be happy to get an approval of any kind. With that said, making on time payments, not having over 30 percent util reported, and seeing your FICO improve over time should help with attracting other credit.

Road to rebuilding starts soon
Message 46 of 50
boomhower
Valued Contributor

Re: Low credit limit is not a good reason to close credit cards

If it doesn't have an AF I'm not going to close it.  I'm also not going to out of my way to use it and keep it open either so if it gets closed for inactivity oh well.  I just personally don't see the benefit of closing a card with no AF. 

Message 47 of 50
score_building
Senior Contributor

Re: Low credit limit is not a good reason to close credit cards


@Wolf3 wrote:

Agree.   It is not a good reason on its own.   It can contribute to other good reasons to close a carrd.   


+1

DCU EQ 5.0, Citi EQ 08 Bankcard, PenFed EX NG2
EX 08: AFCU, Amex, Chase, PSECU EX 98(?)
TU 08: Barclays, Discover
Message 48 of 50
LS2982
Mega Contributor

Re: Low credit limit is not a good reason to close credit cards


@boomhower wrote:

If it doesn't have an AF I'm not going to close it.  I'm also not going to out of my way to use it and keep it open either so if it gets closed for inactivity oh well.  I just personally don't see the benefit of closing a card with no AF. 


I agree with this. Get the free positive history.




EQ FICO 548 3/3/16
Message 49 of 50
Dustink
Valued Contributor

Re: Low credit limit is not a good reason to close credit cards

Having unused cards open is just asking for fraud. It may be a long time before you see that somebody has used a card that you rarely use. Seems like closing it would be the safe route.

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%
Message 50 of 50
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