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Should I close sub prime accounts

New Member

Should I close sub prime accounts

Hi everyone , my first post here. I'm 24 and had a lot of issues being a young college kid. Long story short, at the age of 19 I got my hands on three sub prime credit cards with small limits. FPB at 250 orchard bank at 300 and credit one bank at 400. I also have a walmart card for 800 that started at only 250. After five years of use and with two late payments on my report, I figured I would try applying for a discover it and chase freedom. I was approved for discover at 6000 and chase for only 700. Now my question is should I go and cancel the three sub prime cards and take the hit to avoid paying the ridiculous fees that came attached with these cards? Would it benefit me in the long run although they are the oldest aged credit in my history? I understand orchard bank changed to capital one should I keep it, they did piss me off with a 59.99 member fee just recently.

All help and advice is greatly appreciated thanks a lot

Dan
Message 1 of 14
13 REPLIES
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Valued Member

Re: Should I close sub prime accounts

I would first try and waive the AF.  I had success with Orchard doing that.  If you can get the annual fee waived, there is no reason to close the account as your AAoA will only go up and make you look better.

 

WF Platinum (3K), CapOne Platinum (5K), Discover IT (1K)
Message 2 of 14
Moderator Emerita

Re: Should I close sub prime accounts

First try to have your fees waived. If not close them. You have 2 'prime' cards now and paying for those cc is a waste of money IMO. Keep the Walmart because there's no AF, ability to have sp clis and you get a free CS!

Closed accounts may stay on your cr for up to 10 years. Your AAOA will not be affected now but years later may when they drop off. Now that you have higher limits, the loss of CLI's will not harm your util.
Message 3 of 14
New Member

Re: Should I close sub prime accounts

Has anyone been successful in getting the fees waived by these companies ?
Message 4 of 14
Valued Contributor

Re: Should I close sub prime accounts

I did on my Orchard Bank, now Cap One. Had an issue recently with them charging me the annual fee in June, even though I talked to them in March about it.

Actually today, one of the fellas who I guess handles the annual fee waivers called me up to apologize for the glitch, and let me know he was the one who personally handled the situation to refund me! He assured me that the account has since been officially coded as a no annual fee account, and that there should be no problems in the future!

Quicksilver WMC $20k | JCPenney Platinum $10k | Drive for Five $800 | Freedom VS $5k | TD Cash VS $5k | CFU VS $14.8k | Blue Sky $13.7k | IT $28k | SavingStar $14.8k | BCE $11.3k | Macy's AMEX $7.2k | BuyPower WEMC $7.5k | CSR VI $13.3k | Diamond Preferred $6.5k FICOS: EX 775 EQ 764 TU 759 VantageScore 3.0: EX 759 EQ 757 TU 762
Message 5 of 14
Moderator Emerita

Re: Should I close sub prime accounts

My DH got his AF waived with Orchard/Cap 1. I don't have any personal experience with the other cc's
Message 6 of 14
Super Contributor

Re: Should I close sub prime accounts


09Lexie wrote:
First try to have your fees waived. If not close them. You have 2 'prime' cards now and paying for those cc is a waste of money IMO. Keep the Walmart because there's no AF, ability to have sp clis and you get a free CS!

Closed accounts may stay on your cr for up to 10 years. Your AAOA will not be affected now but years later may when they drop off. Now that you have higher limits, the loss of CLI's will not harm your util.

+1

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Message 7 of 14
Regular Contributor

Re: Should I close sub prime accounts

I recently had sucess contacting Cap 1 EO.  They upgraded my Orchard Bank Platinum to a Quicksilver Rewards.  

From 566 in 8/2012 to..

EQ 704 /TU 690 / EX 730

Discover IT 6000, Amex BCE 10000, FNBO Amex 3500, Cap 1 platinum 2000, Walmart Discover 5000, Orchard Bank platinum 3000, Best Buy 5000, Merrick Bank 1600, Target Visa 700
Message 8 of 14
New Member

Re: Should I close sub prime accounts

Personally, as soon as I hit that transition phase in my credit repair where I started getting approved for "prime" cards, I closed all my low limit, sub prime cards and I have only seen positive results since doing so.
Chase Sapphire Preferred / Chase Marriott Premier / AMEX Blue Sky / AMEX Delta Gold / USAA AMEX / USAA World MC / Citi AAdvantage World MC / Barclays Reward Visa / Sam's Club Discover / Walmart
Message 9 of 14
Super Contributor

Re: Should I close sub prime accounts


Danfriscia3 wrote:
FPB at 250 orchard bank at 300 and credit one bank at 400. I also have a walmart card for 800 that started at only 250. After five years of use and with two late payments on my report, I figured I would try applying for a discover it and chase freedom. I was approved for discover at 6000 and chase for only 700.

In my estimation, once you have Discover and Chase, there is absolutely *NO* reason to keep First Premier, Orchard (unless it's the old Household 2% with no fee), or Credit One.  At 24, annual fee waived or not, I'd purge them, since the effects on your AAOA will be non-existent.

 

The sooner you close the uber subprime cards and escape "toy limit" hell, the better off you will be.  You don't want FP or Credit One on your reports, if you can help it.

 

Good luck!

Message 10 of 14