I have some random credit card/account questions and instead of putting them all in separate threads, I thought it would be better just to ask in one.
1. I have 4 credit cards with high balances and I want to PIF. I have heard varying opinions on this but I want to ask, is it bad to PIF under any circumstances?
2. 3 of these cards are subprime lenders and as as they are paid off I want to close them. I was just approved for a CLI on my Walmart Discover that will offset the combined limit on these 3. Is there any issues you can see with closing these up all at one time?
3. Is there a negative affect to closing a fairly recent account? My wife signed up for a Gettington account about 2 years ago and we rarely ever use it, once it those 2 years. Would there be any negatives to closing that up?
4. Here are my accounts:
Credit One
First Savings
Merrick Bank
Macy’s - 1-2 times per year
Home Depot 1-2 times per year
Bill Me Later 1-2 times per year
Citi Thank You Preferred - daily
Costco American Express - weekly
Walmart Discover - weekly
Amazon Store Card - weekly
Dell Preferred Account - less than annually
Gettington Account - less than annually
Best Buy - 1-2 times per year
Regions - monthly
The ones in bold are the subprimes I want to close. Are there any others you'd recommend closing based on usage or does it not hurt to keep them open and charge on them occassioally as long as they are PIF?
5. I'd really like to go for the Southwest card whenever I receive another email about the 2 free roundtrip tickets for $2000 spent in 3 months. What's the approval for that card like?
6. I'd also like to get a MasterCard to have at least one of the 4 majors (Visa/MasterCard/Discover/American Express). Are there any MasterCards you would recommend?
7. My current FICO scores range from 720 - 750, if that helps.
8. Also, I am looking at purchasing a home within the next year, is there anything I need to be cautious about regarding that in relation to the credit cards? My wife purchased a home on her own before we were married so I am sure we'll be doing it together now.
Thanks in advance for the answers. 
@wwtthhpp wrote:I have some random credit card/account questions and instead of putting them all in separate threads, I thought it would be better just to ask in one.
1. I have 4 credit cards with high balances and I want to PIF. I have heard varying opinions on this but I want to ask, is it bad to PIF under any circumstances?No bad things come from PIF.
2. 3 of these cards are subprime lenders and as as they are paid off I want to close them. I was just approved for a CLI on my Walmart Discover that will offset the combined limit on these 3. Is there any issues you can see with closing these up all at one time?I say get rid of any sub prime cards that have an AF if it won't affect your utility. If it will affect your utility, then get the cards you want then get rid of them after. JMHO.
3. Is there a negative affect to closing a fairly recent account? My wife signed up for a Gettington account about 2 years ago and we rarely ever use it, once it those 2 years. Would there be any negatives to closing that up? No negs to closing an account other then affect to utility. There is the very slight chance that it may drop of the CR before the full 10 years but the chances are slim... with that said, the history will stay for 10 years helping your AAoA
4. Here are my accounts:
Credit One
First Savings
Merrick Bank
Macy’s - 1-2 times per year
Home Depot 1-2 times per year
Bill Me Later 1-2 times per year
Citi Thank You Preferred - daily
Costco American Express - weekly
Walmart Discover - weekly
Amazon Store Card - weekly
Dell Preferred Account - less than annually
Gettington Account - less than annually
Best Buy - 1-2 times per year
Regions - monthly
The ones in bold are the subprimes I want to close. Are there any others you'd recommend closing based on usage or does it not hurt to keep them open and charge on them occassioally as long as they are PIF?
5. I'd really like to go for the Southwest card whenever I receive another email about the 2 free roundtrip tickets for $2000 spent in 3 months. What's the approval for that card like? If you have low utility, if you haven't been actively seeking credit recently... go for it. With your profile, I think you are good to go.
6. I'd also like to get a MasterCard to have at least one of the 4 majors (Visa/MasterCard/Discover/American Express). Are there any MasterCards you would recommend? Are you looking for a rewards card? If so, what kind? Travel, Cash Back, ect... If cash rewards, look into the Freedom MC, the Barclay Rewards MC - if a travel card and you are not a frequent traveler.. check out Barclay Arrival MC are some of my suggestions.
7. My current FICO scores range from 720 - 750, if that helps.
8. Also, I am looking at purchasing a home within the next year, is there anything I need to be cautious about regarding that in relation to the credit cards? My wife purchased a home on her own before we were married so I am sure we'll be doing it together now. Keep the utility low before seeking the mortgage (1-9% on one card only and 0 on all others reported). Don't seek any new credit at least 6 months before the app. You've already got a good profile. It would just take some tweeking. I think your plan of having a few good cards to use is sound. Just don't go crazy and charge them up...
Thanks in advance for the answers.
Hey wwtthhpp! Nice job on growing that FICO!
Edit: One more thing.... I'd recommend getting rid of all store cards except maybe 1 or 2 once you acquire some new major cards with decent limits. Use the majors to gain rewards and SD the others. That's just my 2 cents. Store cards help with providing extra buying power with regards to utility but really, they are terrible accounts to actually use and carry a balance. They have high APRs, the% you save on purchases using a store card rarely nets you the bonuses recieved with using a major rewards card and the flip side of it is..the open store accounts add additional debt load in the eyes of a mortgage underwriter. It also minimizes the amount of actual cards you have to manage at the end of the month come bill payment time.
Starting Score: 642
@wwtthhpp wrote:I have some random credit card/account questions and instead of putting them all in separate threads, I thought it would be better just to ask in one.
1. I have 4 credit cards with high balances and I want to PIF. I have heard varying opinions on this but I want to ask, is it bad to PIF under any circumstances?
Nope, no reason not to PIF.
2. 3 of these cards are subprime lenders and as as they are paid off I want to close them. I was just approved for a CLI on my Walmart Discover that will offset the combined limit on these 3. Is there any issues you can see with closing these up all at one time?
If they have an AF, close them. No reason to have subprime cards with an AF with your profile.
3. Is there a negative affect to closing a fairly recent account? My wife signed up for a Gettington account about 2 years ago and we rarely ever use it, once it those 2 years. Would there be any negatives to closing that up?
My personal philosophy is to not close any account that doesn't have an AF. Other than losing the credit line to offset any other balances no real negative, it'll count on AAoA for ten years.
4. Here are my accounts:
Credit One
First Savings
Merrick Bank
Macy’s - 1-2 times per year
Home Depot 1-2 times per year
Bill Me Later 1-2 times per year
Citi Thank You Preferred - daily
Costco American Express - weekly
Walmart Discover - weekly
Amazon Store Card - weekly
Dell Preferred Account - less than annually
Gettington Account - less than annually
Best Buy - 1-2 times per year
Regions - monthly
The ones in bold are the subprimes I want to close. Are there any others you'd recommend closing based on usage or does it not hurt to keep them open and charge on them occassioally as long as they are PIF?
If they don't have an AF I would leave them open.
5. I'd really like to go for the Southwest card whenever I receive another email about the 2 free roundtrip tickets for $2000 spent in 3 months. What's the approval for that card like?
I'd say you would get approved for it now unless several of those accounts are very recent.
6. I'd also like to get a MasterCard to have at least one of the 4 majors (Visa/MasterCard/Discover/American Express). Are there any MasterCards you would recommend?
I'm a big fan of the Barclay's Sallie Mae card. Nice rewards at amazon and grocery.
7. My current FICO scores range from 720 - 750, if that helps.
8. Also, I am looking at purchasing a home within the next year, is there anything I need to be cautious about regarding that in relation to the credit cards? My wife purchased a home on her own before we were married so I am sure we'll be doing it together now.
It's nothing magical. Keep balances low and don't apply for anything inside of six months of applying if you can help it. It's certainly not a deal breaker by any means but it just doesn't look good and will ding you score a bit.
Thanks in advance for the answers.
Good Luck!