@lbdebtfree wrote:
@MarineVietVet wrote:How would closing them drop scores?
Look at his debt to credit limit ratio and his utilization. If he is using anywhere close to the limits or carrying high balances on the two cards he intends to keep, closing those accounts would not be a smart move.
As I believe someone stated, if he did so, he should ensure he has a 'zero' balance on all his cards because once he closes those two accounts his debt to credit ratio is going to go up. Thus his %util will be higher also.
Best bet is to take advantage of that high credit score just in case his score would take a dip by applying for a no AF card to replace them, then close them out.
Can't see the OP "missing" $600 worth of CL for cards with AF's. The 1300CL Barclays is plenty to get by until prime cards are available for him.
Everything but one card is PIF. I have 9.51 on the other Account. If it helps, from here on out i will never let more then 9% util report.
@lbdebtfree wrote:
@LS2982 wrote:
@lbdebtfree wrote:Closing both might cause a significant drop in your credit scores bringing you well below 700. I wouldn't chance it without doing a little more research first. If you use any credit monitoring service with a simulator, use it and see what it says might happen. It's not absolute but could serve as a good gauge.
Not true. Only way they cause a significant drop is if AAoA is severely impacted or overall utilization CL is affected, and it don;t look like those will be an issue. This response sums it all up.
Not true!
If your considering his debt to credit limit ratio and utilization then you wouldn't say this. Also if he is using anywhere close to the limits or carrying high balances on the two cards he intends to keep before he closes those other two accounts, this would not be a smart move. Besides those are also his "oldest" credit cards. Does not matter. Those cards will continue to report for 10 years after closure along with his current cards.
As I believe someone stated, if he did so, he should ensure he has a 'zero' balance on all his cards because once he closes those two accounts his debt to credit ratio is going to go up. Thus his %util will be higher also. Also must keep in mind if he doesn't get more credit he will have to ensure he charges less or else it will take him over his util% faster. This is valid but the OP has already stated they understand the Util. principal. He does not need to get more credit if he does not want to as long as he keeps the util. down on the Barclay's card. (hello! he's going down in available credit not up) Really?? no comment.
Couple things he could do if he's adamant to close them. Seek CLI's on the cards he intends to keep or take advantage of that high credit score just in case his score would take a dip by applying for a no AF card to replace them, then close those cards out.
Yeah his Orchard card limits don't seem high but looking at his total credit limit they're carrying some weight~ Not enough to warrant $100 in AF's.
@lbdebtfree wrote:
@AllPro wrote:Everything but one card is PIF. I have 9.51 on the other Account. If it helps, from here on out i will never let more then 9% util report.
That is great! Sounds like your off to a good start to building a solid and sound credit history. But unlike what LS suggests i don't see the sense in rocking the boat, taking the risk to close out two of your oldest accounts And only 1 of those accounts are old, the other one isn't even a year old yet. and not replace that credit first before taking a chance? What boat are you rocking?!?!?!? Hes not losing any history on the accounts they are there for 10 years after closure (not to mention his current accounts gaining history as well)! He has a $1300CL that has very low util.! I'm not sure where your going with this. You have an acceptable credit score range to qualify for almost any card you'd want especially if you exercise patience. If your scores do take a dip those offers may be less. There's nothing wrong with playing it safe. Technically him or I and nobody else can tell you for sure what will happen because we won't be determining your scores. But credit logic says to go forward not backwards and never underestimate the small stuff.
@lbdebtfree wrote:
@LS2982 wrote:
@lbdebtfree wrote:
@LS2982 wrote:
@lbdebtfree wrote:Closing both might cause a significant drop in your credit scores bringing you well below 700. I wouldn't chance it without doing a little more research first. If you use any credit monitoring service with a simulator, use it and see what it says might happen. It's not absolute but could serve as a good gauge.
Not true. Only way they cause a significant drop is if AAoA is severely impacted or overall utilization CL is affected, and it don;t look like those will be an issue. This response sums it all up.
Not true!
If your considering his debt to credit limit ratio and utilization then you wouldn't say this. Also if he is using anywhere close to the limits or carrying high balances on the two cards he intends to keep before he closes those other two accounts, this would not be a smart move. Besides those are also his "oldest" credit cards. Does not matter. Those cards will continue to report for 10 years after closure along with his current cards.
As I believe someone stated, if he did so, he should ensure he has a 'zero' balance on all his cards because once he closes those two accounts his debt to credit ratio is going to go up. Thus his %util will be higher also. Also must keep in mind if he doesn't get more credit he will have to ensure he charges less or else it will take him over his util% faster. This is valid but the OP has already stated they understand the Util. principal. He does not need to get more credit if he does not want to as long as he keeps the util. down on the Barclay's card. (hello! he's going down in available credit not up) Really?? no comment.
Couple things he could do if he's adamant to close them. Seek CLI's on the cards he intends to keep or take advantage of that high credit score just in case his score would take a dip by applying for a no AF card to replace them, then close those cards out.
Yeah his Orchard card limits don't seem high but looking at his total credit limit they're carrying some weight~ Not enough to warrant $100 in AF's.
No matter how much red bold highlighting you do it still doesn't make sense, lol. You don't seem to look at the bigger picture. I'm not saying he should hang on to those credit cards, he certainly could do much better (and deserves better) especially given his scores, but i'd darn sure be planning to replace them before i let them go. Can you say for 100% certainty these actions won't affect his credit???
His days with Orchard are over but your asking him to possibly do something silly for a person starting to really build credit. Closing both at the same time to me is not worth a risk. Maybe one this year and the other one next year.
I don't think you understand how closing accounts really work. I suggest doing some research into it.
He doesn't need new cards to replace them if he doesn't want them. It's that simple. As long as you treat the Barclay's $1300 CL properly there's no need for more credit.
Theres absolutely no need to pay AF's on rebuilder cards when you have other cards with higher limits and closing them will not affect you as long as you properly handle your current accounts.
And that's written in black so you can understand it better........................
@lbdebtfree wrote:
@LS2982 wrote:
@lbdebtfree wrote:
@LS2982 wrote:
@lbdebtfree wrote:Closing both might cause a significant drop in your credit scores bringing you well below 700. I wouldn't chance it without doing a little more research first. If you use any credit monitoring service with a simulator, use it and see what it says might happen. It's not absolute but could serve as a good gauge.
Not true. Only way they cause a significant drop is if AAoA is severely impacted or overall utilization CL is affected, and it don;t look like those will be an issue. This response sums it all up.
Not true!
If your considering his debt to credit limit ratio and utilization then you wouldn't say this. Also if he is using anywhere close to the limits or carrying high balances on the two cards he intends to keep before he closes those other two accounts, this would not be a smart move. Besides those are also his "oldest" credit cards. Does not matter. Those cards will continue to report for 10 years after closure along with his current cards.
As I believe someone stated, if he did so, he should ensure he has a 'zero' balance on all his cards because once he closes those two accounts his debt to credit ratio is going to go up. Thus his %util will be higher also. Also must keep in mind if he doesn't get more credit he will have to ensure he charges less or else it will take him over his util% faster. This is valid but the OP has already stated they understand the Util. principal. He does not need to get more credit if he does not want to as long as he keeps the util. down on the Barclay's card. (hello! he's going down in available credit not up) Really?? no comment.
Couple things he could do if he's adamant to close them. Seek CLI's on the cards he intends to keep or take advantage of that high credit score just in case his score would take a dip by applying for a no AF card to replace them, then close those cards out.
Yeah his Orchard card limits don't seem high but looking at his total credit limit they're carrying some weight~ Not enough to warrant $100 in AF's.
No matter how much red bold highlighting you do it still doesn't make sense, lol. You don't seem to look at the bigger picture. I'm not saying he should hang on to those credit cards, he certainly could do much better (and deserves better) especially given his scores, but i'd darn sure be planning to replace them before i let them go. Can you say for 100% certainty these actions won't affect his credit??? Yes, I can. Properly handle your other accounts and they're will be absolutely ZERO consequences for closing both of those accounts.
His days with Orchard are over but your asking him to possibly do something silly for a person starting to really build credit. Closing both at the same time to me is not worth a risk. Maybe one this year and the other one next year.
The excessive quoting must stop. Where's a mod when you need one?