01-20-2013 04:16 PM
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.
01-20-2013 05:33 PM
01-22-2013 01:30 AM
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.
01-24-2013 02:51 PM
01-24-2013 03:01 PM - edited 01-24-2013 03:04 PM
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.
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.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
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.