Should I cut up some cards?

[JT44]

Hello,

So I have done a nice job of repairing my credit, MUCH thanks to this forum. Went from low 500's to Low 700's in approximately 15 months. So thanks again. Never would have happened without the help of this site. However, I am on a mission for 750+!!!

I have a question for you all! Below is a list of the cards I currently "have in my wallet" and I am wondering if I should get rid of some of them. The main reason I am considering getting rid of one or two is because they are relatively low CL. I am wondering if it is a negative to have these low CL cards in my wallet?

My reasoning is that their has to be a part of the FICO formula that penalizes for low CL reporting to the credit agency, and that at some point the low credit limit relative to the average age of accounts is a detriment. Am I making sense? I guess what I want to know is should I cut up my lower CL cards, even though they are two of my oldest? As you see below, I am still a AU on my wifes card that i beleive really strengthened my credit.

Please advise, and ask for clarirification if I am not making sense!

Cap One Platinum MC --$10,000-- been open for 18 months

Cap One Quicksilver MC --$750-- been open for 18 months

Barclay Card Platinum MC --$1300-- Been open for 18 months

Alaska Air Visa (BofA) --$12,000-- Authorized User, Account been open for 10 yrs+

Alaska Air Visa (BofA) -- $7500-- Been open for 3 months

Citi Diamond Preferred MC --$3500-- Been open for 1 month

I have never had a late pay, and pay all of them (that are in use) off each statement so my utilization is literally 0%. Maybe a little if I miss the statement date, but still pay by the due date. I have never used either the Barclays or the Citi card. They are sock-drawered. Not looking for advice on points or programs. My Alaska Visa will become my goto card. Just wondering if the Cap 1 Quicksilver or the Barclays are even helping me? I assume I should stay on the AU of my wifes big card as well, correct?

Thanks for any and all responses in advance!

[user5387]

I'm not aware that low-CL cards hurt FICO scores.

The exception to this rule is an indirect one -- high utilization or maxed out cards hurt your score, and this is easier to do with low-CL cards.

Closing a card has no immediate effect on your AAoA.

A low-CL card may affect manual underwriting or the acceptance criteria for specific lenders.

[JT44]

Ok so not to worry then? Thats what it sounds like you ae saying. And even though I haven't used some of them, I shoudl use them all every other month or so, just to keep them open?

Thanks!

[Leadberry]

---

@JT44 wrote:

Ok so not to worry then? Thats what it sounds like you ae saying. And even though I haven't used some of them, I shoudl use them all every other month or so, just to keep them open?

Thanks!

---

What he's saying is that they won't have a negative effect on your score, but it's not the end of the world if you close them either.  If you don't want to keep them open, just close them.

[user5387]

---

@JT44 wrote:

Ok so not to worry then? Thats what it sounds like you ae saying. And even though I haven't used some of them, I shoudl use them all every other month or so, just to keep them open?

Thanks!

---

You need to be careful with low-CL cards.  For example, if you carry a $450 balance on a $500 card, and have $10K of other credit, then your overall utilization is low, but the utilization for that card is high, and will hurt you.

If I had cards with CLs less than $1000 or some similar low figure, I'd try to get CLIs or else close them.

Another point here is that you need to judge your ability to manage lots of cards.  If you aren't skillful at this, then you can get burned, for example if you forget that you actually have a card, and a small charge of some sort (maybe fraudulent) eventually turns into a late payment.

[JT44]

Ok great info. Thanks!

I actually have never used my low CL cards for anything other than a cup of coffee. Just to keep them open. Pay them off immediately.

As I move to apping and having "better" cards in my wallet, should I consider then closing my lower CL cards? I guess if closing them has absolutely zero negative effect, then I will go ahead and close, but if by keeping them open and never using them I can get a FICO # increase, then I will keep them open, and just not use them.

[Leadberry]

---

@JT44 wrote:

Ok great info. Thanks!

I actually have never used my low CL cards for anything other than a cup of coffee. Just to keep them open. Pay them off immediately.

As I move to apping and having "better" cards in my wallet, should I consider then closing my lower CL cards? I guess if closing them has absolutely zero negative effect, then I will go ahead and close, but if by keeping them open and never using them I can get a FICO # increase, then I will keep them open, and just not use them.

---

It's up to you.  Being low-limit cards, they don't matter much.  Sooner or later people are going to start posting in this thread that you should never close any cards ever and toss them in the sock drawer until the end of time.  Personally, I couldn't be bothered having to worry about a possible fraudulent transaction posting to an unused account and tarnishing my credit reports.

[user5387]

If it was me, I'd contact the Cap One EO on the $750 card, and try to get a CLI on it.

If not possible, then I'd probably get rid of this one.

[SunriseEarth]

---

@user5387 wrote:

If it was me, I'd contact the Cap One EO on the $750 card, and try to get a CLI on it.

If not possible, then I'd probably get rid of this one.

---

+1

[axledobe]

If you haven't tried the CLI button on CapOne's website, I would do that ASAP.  I have a friend at work who has had a $500 card for 3 years.  I told him about the recent giving mood CapOne is in and he tried it.  Before my eyes, I watched $500 go to $5.5K in less than 10 seconds!  We both about fell out in the floor.  No EO, no calls, no emails, no chat... nothing... just a click of the luv button.

As to low limit cards, I personally don't think they hurt a score AT ALL if you know how to use util and have it report.  My highest limit reporting right now is $1.5K and my EQ score is in the 810+ range and I'm in my mid 30's.  Yes, over 800.  One thing I think people forget is the ratio of installment to revolving accounts and how it supposedly still matters in scoring.  I have two installment accounts and three credit cards (and no mortgage reporting).  Yes, it might affect future starting CL's depending on where you app but I'm not convinced it hurts your score as the proof is in the pudding.

I just thought I would throw that out there in an effort to assist.  Good luck with whatever decision you make.  Please reply back if CapOne's luv button works.