Credit Cards

[rckstrscott]

So. My first unsecured card after reparing was with Credit One. 100+ dollar annual fee. Opened on 4/2011, $500 dollar limit.

I have since gotten a handful of other cards, I have a Macy's Amex with 3900 limit, Capital Ones Cash Rewards (no fee) w/ 1500 limit, and a Chase Freedom with (yeah I know) $500 limit along with some store cards.

My AAoA is almost 2 years at this stage, so nothing awesome or anything like that.

Question I have is: Closing the Credit One seems like a no brainer right? I have no balance. They charge me 9.25 a month as a broken down annual fee, and I am quite pissed at the fact they are owned by the same company as Resurgent who keeps coming after me for zombie debt (coincidence? hahaha yeah right!)

Although this is my second oldest card after my Cap1 Secured card, since my AAoA isn't high anyway, this shouldn't impact my FICO too much to close right?

I just am annoyed to have to keep giving them money, when I don't use the card, don't need the limit, and don't want to willingly give money to the same mouth that is trying to take more from me on the other end.

-scott

[Revelate]

Close, and good riddance to it.

Edit: no FICO impact at all with the number of cards you have.  Probably will be a straight bonus when it comes to underwriting on any application in the future, assuming they care about such things as others have suggested (Amex w/FP as an example, Credit One falls in the same category)

[rckstrscott]

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Revelate wrote:

Close, and good riddance to it.

Edit: no FICO impact at all with the number of cards you have.  Probably will be a straight bonus when it comes to underwriting on any application in the future, assuming they care about such things as others have suggested (Amex w/FP as an example, Credit One falls in the same category)

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Would the account being closed be enough in regards to underwriting concerns (such as Amex with FP) or should I pursue attempted to get the trade line wiped?

-scott

[rckstrscott]

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rckstrscott wrote:

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Revelate wrote:

Close, and good riddance to it.

Edit: no FICO impact at all with the number of cards you have.  Probably will be a straight bonus when it comes to underwriting on any application in the future, assuming they care about such things as others have suggested (Amex w/FP as an example, Credit One falls in the same category)

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Would the account being closed be enough in regards to underwriting concerns (such as Amex with FP) or should I pursue attempted to get the trade line wiped?

-scott

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Also; although it is my oldest card I could probably just close the Cap1 secured and get my stinkin money back... since when it falls off the report naturally, my other cards will have all aged to make it irrelevant anyway yeah? 0 balance on that

Actually my overall util is under 5 percent so I think I can close these cards and make a small payment to the unsecured Cap1 card (the one card I keep a balance on) and see no real FICO change at all. Is that a safe assumption?

-scott

[pizzadude]

I'd definitely close the credit one card ~ no need to pursue getting it wiped off your reports though.

I'd try to have at least three open revolving accounts, with a small balance showing on only one.

[jllunas]

I just closed my credit one card. Had it for almost 2 years to rebuild my credit. Now I have a cap1 rewards, Barclay rewards,and orchard. I did not want to pay my 9.25 a month fee anymore if I did not have to. They even offered to wave my fee for 3 billing cycles! But I still closed it, i said thanks but no thanks.

[Revelate]

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rckstrscott wrote:

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Revelate wrote:

Close, and good riddance to it.

Edit: no FICO impact at all with the number of cards you have.  Probably will be a straight bonus when it comes to underwriting on any application in the future, assuming they care about such things as others have suggested (Amex w/FP as an example, Credit One falls in the same category)

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Would the account being closed be enough in regards to underwriting concerns (such as Amex with FP) or should I pursue attempted to get the trade line wiped?

-scott

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From anecdotal reports closed should be fine.  Unless there's outright negative information on the tradeline, FICO will see it as a positive, and banks can't afford to toss away people who are moving up into better financial stratas (income or credit or responsibility or whatever). Might even be a positive anyway, and easy to recon if it's not.  

[lithium78]

Definitely close it.  With scores like yours, you no longer need a bottom-of-the-barrel card like Credit One.  The savings in fees really make closing it worthwhile.

[Revelate]

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rckstrscott wrote:

Also; although it is my oldest card I could probably just close the Cap1 secured and get my stinkin money back... since when it falls off the report naturally, my other cards will have all aged to make it irrelevant anyway yeah? 0 balance on that

Actually my overall util is under 5 percent so I think I can close these cards and make a small payment to the unsecured Cap1 card (the one card I keep a balance on) and see no real FICO change at all. Is that a safe assumption?

-scott

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I think that's a mostly safe assumption as PD states.  Personally if I have a tradeline which isn't hurting me financially, I like to keep it open as long as possible with the way FICO appears to work with regards to payment history and tradeline seasoning (in general the longer a tradeline is open the better). however, if the $500 is going to make a material difference in your life, close it.  It doesn't sound like that's the case though.

In my own case, I have 2K in a secured DCU credit card: while I'm at the "minimum" of 3 cards, if that 2K makes a difference in my getting a mortgage, it'll be airstruck.  If not, I'll just let it run the 2 or 3 years they allow me to keep it open or until I really don't need it at all (around the time I qualify for a BCP as an example)

[LS2982]

Axe it, it makes no sense to pay them that money when your scores will not be impacted closing it and you have better cards currently.