Should I start closing some cards?

Red1Blue · ‎02-06-2012

Should I start closing some cards? I have some cards with low limits and AF. I am thinking if I should start closing them.

Anonymous · ‎02-06-2012

I'm sure others will disagree, but I think that as soon as you get better cards, any low-limit AF cards should be the first to go.

Guava · ‎02-06-2012

I'm in favor of closing them if you've moved on to greener pasture

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KingAdrock · ‎02-06-2012

I believe in keeping cards forever, except if they have an AF. But you can always call and ask if they'll waive the AF. If they do, sockdrawer it and try again next year. If not, kick em to the curb and don't look back.

JustMe77 · ‎02-06-2012

That depends. What cards do you have open, what are their annual fees and limits? What is the total of your reported balances?

Current Cards: Banana Republic Visa ($5,300), Chase Freedom ($2,000), Discover It ($11,500), Amex Costco True Earnings ($5,000), Chase Slate ($2,500)

LS2982 · ‎02-06-2012

@Red1Blue wrote:
Should I start closing some cards? I have some cards with low limits and AF. I am thinking if I should start closing them.

Whats your files look like?? AAoA good? If everything is kosher I would toss the AF low limit cards.

EQ FICO 548 3/3/16

Anonymous · ‎02-06-2012

I agree that you should close those with AF if you no longer need/use them. I also, however, don't think there is any reason to close cards that don' thave an AF, even if you don't use them ever.

Edit: Some people will say "well, it stays on your report for 10 years after you close it, so you might as well close if you don't use it." I don't get the logic behind this. What happens after 10 years? Do 10 year old accounts help your score the same as 15 year old accounts? I doubt it.

LS2982 · ‎02-06-2012

@Anonymous wrote:
I agree that you should close those with AF if you no longer need/use them. I also, however, don't think there is any reason to close cards that don' thave an AF, even if you don't use them ever.

+1

EQ FICO 548 3/3/16

Anonymous · ‎02-06-2012

I only close a card if its super high interest and very low limit.

I keep the low limit cards I do have open still for internet purchases.

Anonymous · ‎02-06-2012

@Anonymous wrote:
I'm sure others will disagree, but I think that as soon as you get better cards, any low-limit AF cards should be the first to go.

I agree, espcially if you started with a credit building/rebuilding cards like Orchard/HSBC. My plan is to start rebuilding with my Orchard and then when I get approved for 2 other cards with higher credit limits I will close the Orchard. Orchard doesn't go with you, it's just to help you get started.