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Needing Advice

Regular Contributor

Needing Advice

Currently I have 3 CC's, all Cap 1 . One is secured ($300CL) , 2 unsecured ( $300CL, previously Orchard Bank ) and Quiksilver Rewards ($500 CL). Recently applied for a CC thru my credit union and was approved for $500 CL. 4 cards is alot and was thinking of closing the secured card. Good or bad idea?


Starting Score:Equifax 543
Current Score:EQ659 TU 716 EXP677 updated 7/3/2016
Goal Score: 700


Message 1 of 3
2 REPLIES
Epic Contributor

Re: Needing Advice


doc101 wrote:

Currently I have 3 CC's, all Cap 1 . One is secured ($300CL) , 2 unsecured ( $300CL, previously Orchard Bank ) and Quiksilver Rewards ($500 CL). Recently applied for a CC thru my credit union and was approved for $500 CL. 4 cards is alot and was thinking of closing the secured card. Good or bad idea?


If your balances are low and you just want 3 cards moving forward to build better history and credit score then sure close the secured.

Message 2 of 3
Valued Contributor

Re: Needing Advice

You have a total CL of $1600.

 

If you close the card, your AAoA will not be affected, and your new CL will be $1300.

 

This means that your new utilization will be around 1.23 times (1600/1300) what it was before, for example going from 10% utilization to 12.3% utilization.

 

If your utilization is low, I'd say to go for it.

 

Message 3 of 3