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Should I start closing some cards?

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Super Contributor

Should I start closing some cards?

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

Message 1 of 13
12 REPLIES
Established Contributor

Re: Should I start closing some cards?

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.

EQ 679 FICO (02/24/2012)
TU 721 FICO (03/10/2012)
EX 703 FICO (05/05/2012)

Cards: NFCU cashRewards $14k, NFCU Platinum $14k, USAA Amex $7k, Amazon Visa $3k, Chase Freedom $2.5k, Amex Zync NPSL, Discover More $1k, Amazon Store $1.3k, Walmart Store $700
Message 2 of 13
Established Contributor

Re: Should I start closing some cards?

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


Starting Score (08/11/11): TU08: 643
Current Score: TU08: 741
Goal Score: Stay in the 700s; keep reports clean


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Message 3 of 13
Established Contributor

Re: Should I start closing some cards?

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. Smiley Happy

Message 4 of 13
Frequent Contributor

Re: Should I start closing some cards?

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)
Message 5 of 13
Mega Contributor

Re: Should I start closing some cards?


concorduser 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
Message 6 of 13
Valued Contributor

Re: Should I start closing some cards?

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.

In My Wallet:
AMEX BCE, Citi Forward, Chase Freedom

In My Sockdrawer:
AMEX Clear, Citi Platinum Select, US Bank Platinum, J.Crew
Message 7 of 13
Mega Contributor

Re: Should I start closing some cards?


ptr2593 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
Message 8 of 13
New Contributor

Re: Should I start closing some cards?

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.

EQ FICO 735 as of June 17, 2011
EX FAKO 767 as of April 3rd, 2012
Citibank($10,000@10.74%) Discover($5000) CapitolOne($4500)
USBank($3000) AMEX($2000) BOA($2000) NRAVISA($4000)
ChaseVisa($500)
Message 9 of 13
Established Member

Re: Should I start closing some cards?


AndyK 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.


2012 Starting Score: 536
Current Score: 538
2012 Goal Score: 650


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Message 10 of 13