Credit Cards Center Credit cards from our partners
Reply
Established Contributor
Posts: 855
Registered: ‎06-29-2010
0

Re: Target red. Would you close?

The 5% Red Card discount, free shipping on any size order and 30 extra days for returns outweight any negatives of having a low credit limit in my opinion.

Valued Contributor
Posts: 2,111
Registered: ‎07-29-2011
0

Re: Target red. Would you close?

I have a red card.  It doesn't have a huge limit, and I can't use it currently because there are no Target Stores where I currently live (I move around a lot), but I don't see any reason to close it.  There is no annual fee and the card offers good discounts.  

EX:694 TU:744 EQ:777
Amex ED $19.5k - BoA Travel Rewards $15k - CSP $5k - SDFCU EMV $15k - NFCU goRewards $20k - Barclays Arrival $6.5k
Frequent Contributor
Posts: 463
Registered: ‎11-28-2012
0

Re: Target red. Would you close?

Is having a low limit like $200 seen as a negative to prospective lenders?

Start: Nov'12 EQ 699/EX 685/TU 696 / Current: April''14 EQ 715/EX 709/TU 709 * Goal 750+


Super Contributor
Posts: 7,313
Registered: ‎12-11-2011
0

Re: Target red. Would you close?

I dont really think so. Id you had ALL low limits, then yes, but if you have a bunch of cards with nice limits, and then one with a low limit, i dont think it would be an issue. Just my opinion though.
Frequent Contributor
Posts: 346
Registered: ‎02-01-2012
0

Re: Target red. Would you close?

I may be mistaken but I believe I read somewhere that Target will keep/manage the Red Cards it currently has issued by them but all future applications will be issued/managed by TD. In any case, I would keep it open and hope that one day they do an account review and increase it. Just be sure to keep it active every few months. 

Super Contributor
Posts: 7,313
Registered: ‎12-11-2011
0

Re: Target red. Would you close?

I hadn't heard about that CW2013, but you may very well be right. I just assumed TD would be taking over all of them, but you know what they say about assumptions. Lol
Senior Contributor
Posts: 6,279
Registered: ‎08-16-2012
0

Re: Target red. Would you close?

I closed mine. After a year of no clis and a crappy $300 cl, I said to hell with it!
Ain't nobody got time for that!!! Lol

The thing is, a low limit like that would affect your average credit limit.
So, for issuers that, in theory, approve you with an initial avg CL of all your current CLs... That $300 CL could reduce an initial limit with a new creditor.

That's how I see it, and why I closed it!! It's such a hassle to only use 1/3 of a line that small anyway!

Good luck!
Marriott PR$25k | BCE $24.5K |BankAmericard Visa $25k| BOA Better Bal $17.5k |Wmt Discover $12.5k | BR Visa $17.5k | Amex Delta Gold $10k | Discover IT $10k | Paypal Extras MC $15k | Amazon Store $10k|Smile Gen $7.25k | Dillard's $10k | West Elm $4k| Express $3.05K | Mypoints.com Visa $4.5k | Freedom Visa $1k| Amex Surpass $1k
Highlighted
Valued Contributor
Posts: 2,111
Registered: ‎07-29-2011
0

Re: Target red. Would you close?

[ Edited ]

youngandcreditwrthy wrote:

The thing is, a low limit like that would affect your average credit limit.
So, for issuers that, in theory, approve you with an initial avg CL of all your current CLs... That $300 CL could reduce an initial limit with a new creditor.

That's how I see it, and why I closed it!! It's such a hassle to only use 1/3 of a line that small anyway!


My Target RED card has a $700 limit, but I am very certain that taking an average of your limits is not what lenders do when they issue new credit.  They usually match your highest or second highest limit card.... sometimes exactly.  Some cards have a minimum limit, like $5000.  If you get approved for a card like that, you will get at least the minimum limit.

 

And you don't have to only use 1/3 of the CL.  If you trying to prevent your FICO from dropping any points at all (ie: you are looking for a new loan very soon), then you can just pay the balance before the statement date.  Paying the full balance on a low limit card like that is a good practice anyway, though.  I always pay the full balance on my Target card.

EX:694 TU:744 EQ:777
Amex ED $19.5k - BoA Travel Rewards $15k - CSP $5k - SDFCU EMV $15k - NFCU goRewards $20k - Barclays Arrival $6.5k

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.