Taking Advantage, then getting out..and other new guy questions

[oscar_actuary]

Hello.  This seems to be a friendly joint.

I last saw a credit score, not FICO when going thru our refi in Feb 2012.  It was in the upper 700, as was my wife’s.  I say that just to establish some point of reference.  Since then however, I went pretty crazy apping.  In April of 2012, I applied and was approved for 3 more credit cards, in addition to the 5 major cards we had already.  Then, this last month I applied and was approved for two more.  I am just waiting on the last to arrive.  So that makes 10.  My total CL is almost 100% of my Gross annual salary.  I did close one of the cards we had from April 2012 after paying off the 0% balance.  In addition we have a standard mortgage, 15 yr. after the refi (no cash out) and a car payment 4.95%.  Blah, I dont like car payments.  Utilization on the CC is revolving 35% of one card, 6% of another, 75% on one ($0 transfer will pay off in July), and about 0% on the others, for overall 8-12% utilization.  All paid off monthly except the remaining 0% balance.

I went crazy with the apps to transfer off a 7.5% 2nd Mortgage because I knew the balance was low enough for us to get it paid off in time and the cards were offering 0% for 12-15 months.  And two of them had $0 transfer fees.  The most recent two we got because of the $100 Bonus (Citi Dividend, and BofA Signature) and their 5% or 1/2/3% rewards. 

All of this might generate more questions later, but for now, I guess my only question/concern is that I intend to cancel the Citibank Card as soon as I collect the $100.  It represents 10% of our total CL and therefore my utilization would still be low.  Oh, and I have a grudge against them.  I could be persuaded to hold on.

But here are my concerns: 

Getting closed/reduced by an older account because I have too much available credit or

Getting closed because I'm not profitable enough as I’m starting to really play the bonus/Cash back game.

On that last note, for example, as it works out with the Freedom Card, I do have some regular non 5% items that hit every month on that card, automatically.  As I recall a couple of years ago during the crisis I has my Cap One and another card closed on me (one I got reopened with a phone call) So, I figured it might be best to spread my purchases around a little.  At the time I was just lazily getting 2% on SamsClub.  So, with all the cards we now have with 5% CB, will I need to do some normal purchases as well, or just rake in the cash and let them get around to closing me.  Will they? 

[myjourney]

Welcome to the forum

Keep them open and just SD charge some gas every now and then either way open or closed it will report for 10 years 

[SnackTrader]

Well, in terms of profitability. Just because you aren't paying interest doesn't mean you aren't profitable. Every time you swipe your card someone makes money (including you in the case of cash back). That's why banks offer that incentive.

In terms of keeping cards open, as long as you make all payments on time you shouldn't have much of an issue with your cards being closed. If lates or other dangerous things start showing up on your credit report, watch out. But as myjourney said, just charge a pack of gum or something once every 3-6 months just to keep the cards active. Then use the higher percentage cash back cards for everything else. If you do that, and keep making your payments, everything will be just fine.

And if by accident, you forget to use one of the cards and it is closed on you, no worries. It will report as a positive tradeline on your credit report for many years.

Have fun with cash back! It sounds like you have a great wallet full of cards.

[oscar_actuary]

Thank you both for reassuring replies.  As someone in the risk business, I have concern and elation at the saem time that these banks trust me with so much available credit.  But, from what I read you all saying, 1) They probably will not close them as long as I use them occasionally and keep in good standing everywhere, and 2) Even if they do, it's not a super bad thing

I guess, I fear one of my 4 older accounts bailing on me after seeing all the new credit lines and that would stink since I have a substantially younger AAoA now.  So I think maybe pre-empting their concerns by closing some new ones on my own... eh... seemes like Im seeing ghosts perhaps?

By the way, since the OP, I have apped and been given PenFed Platinum Ultimate Rewards for 20k. (could hardly believe it)  So, TCL > Gross Income.

And Im' in the middle of refi-ing the 4.95% car loan down to 1.74% with PenFed

And - of all things QuckenLoans calls me today to Refi the 3.875% 15 yr we got with them last yr.  Offer is 3.375% with closing cost total $700!!, 12 yrs.  Lender credits covering everythnig else.  And they just pulled the credit report today and I'm preapproved or prequlified, whichever.   I hope all this new credit does not damage me before closing.

I'm just actually freaking out a litle bit because compared to where we were last yr in terms of higher morgage and car rates and 1/2 the TCL, and the CashBack opportunities, it really feels "better than I deserve".  On the other hand, makes me a bit mad I did not act on this sooner.

thanks again!