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Established Contributor
KingAdrock
Posts: 656
Registered: ‎07-17-2007
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Re: Too many cards - which one to close?

[ Edited ]

Wait, let me get this straight: everyone is talking about whether or not to close a card because you don't want to use and maintain it, because if you don't use and maintain the card they'll close it?

 

Am I the only one who thinks closing your card so they don't close your card... is completely absurd? :smileyfrustrated:

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bs6054
Posts: 1,673
Registered: ‎11-11-2012
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Re: Too many cards - which one to close?


KingAdrock wrote:

Wait, let me get this straight: everyone is talking about whether or not to close a card because you don't want to use and maintain it, because if you don't use and maintain the card they'll close it?

 

Am I the only one who thinks closing your card so they don't close your card... is completely absurd? :smileyfrustrated:


Close, except for the fact that no-one is saying that!

 

The discussion is: should I close the card?

 

Several people say "No, always keep cards open"  To keep it open, you may need to buy things on it every now and then.  If you don't, it might get closed.

 

So my points were: a) Should you really care if the card is closed (by you or them) and b) If you should care, what is the cost of keeping it open vs benefit.

 

 

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Revelate
Posts: 9,029
Registered: ‎12-30-2011
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Re: Too many cards - which one to close?


KingAdrock wrote:

Wait, let me get this straight: everyone is talking about whether or not to close a card because you don't want to use and maintain it, because if you don't use and maintain the card they'll close it?

 

Am I the only one who thinks closing your card so they don't close your card... is completely absurd? :smileyfrustrated:


I still use my cards that I don't have a use for once a month to just keep the tradeline open.  Realistically I could probably do once every three months and still be just fine.

 

If I were going to never use a card again, I'd close it immediately.  It doesn't matter for FICO and *probably* doesn't for underwriting, but I try to minimize "account closed by credit grantor" on my reports though occasionally this is unavoidable vis a vis lost/stolen cards.

 

My posts regarding keeping a tradeline open presumes you take some time to keep the account from being flagged for inactivity, though admittedly this won't entirely prevent the possibility of a lender closing your account, but it definitely minimizes it.  I think it more likely there'd be a CLD for any AA that a lender took against an absurdly underutilized card rather than an account closure.

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Established Contributor
KingAdrock
Posts: 656
Registered: ‎07-17-2007
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Re: Too many cards - which one to close?


bs6054 wrote:

KingAdrock wrote:

Wait, let me get this straight: everyone is talking about whether or not to close a card because you don't want to use and maintain it, because if you don't use and maintain the card they'll close it?

 

Am I the only one who thinks closing your card so they don't close your card... is completely absurd? :smileyfrustrated:


Close, except for the fact that no-one is saying that!

 

The discussion is: should I close the card?

 

Several people say "No, always keep cards open"  To keep it open, you may need to buy things on it every now and then.  If you don't, it might get closed.

 

So my points were: a) Should you really care if the card is closed (by you or them) and b) If you should care, what is the cost of keeping it open vs benefit. 


"Account closed by grantor" doesn't look as good as if it's closed by you, however that only matters for a manual review by a living person. But even then it's not a big deal. With the kind of AA CCCs have been throwing around in the last few years, underwriters see that every day. If you get turned down for that reason, I'd say you were on thin ice to begin with and it was simply the final straw that broke the camel's back.

 

Personally I see little benefit to closing a card ever, unless it has an AF. While you do need to buy something once in a while to keep it active you don't have to be all that meticulous about it. People tend to recommend every 3-4 months, but that's really if you want to totally guarantee it won't be closed.

Established Member
chexxie
Posts: 23
Registered: ‎02-05-2010
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Re: Too many cards - which one to close?


scenery_guy wrote:

sqrt wrote:

LostTime wrote:

sqrt wrote:

LostTime wrote:

I dont know if it makes sense to close your two highest limit cards (33% of your total credit) with the hope that you will be able to replace them with cards of like limits. You will risk killing your util with the hopes of getting a lower rate?

 

Also considering that you plan a big purchase, what happens if you cant get the rates you want or cant get another card. Now you have to still make your large purchase, but you have given away 33% of your limits.


Well, close the card is not equal to lose CL. 

I want to transfer CL of UA to freedom, also CL of Delta to SPG.


If your concern is that your limits are toohigh, how will that help you? youd have the same limits just on different cards. But in any event, this is better than closing the cards and losing the limits


Well - I will have less cards in wallet, less cards to concern "which one to use". 

I just hate that you have to use the card every 6 month to keep it open. (not sure about this)


Why not set up an auto pay for a monthly expense? Auto insurance, cable, land line or cell phone, internet... we all have a bunch of expenses like this, you could put one on each card, set up auto pay in full and sock drawer them for a year. Monthly use and no thought on your part. 


 

Regarding the using every 6 months, I don't know if it's just the types of cards but I haven't had any of them closed due to 6 months (or even 12+ months) of inactivity.

I have 4 CCs: #1 - I primamily use. #2 - I haven't used since 2011. #3 - I used for the first time last week since 2011, & #4 - I haven't used since early 2012.

 

I like scenery_guy's auto pay (use) & auto repay idea. Pretty sure I'll be doing that since I am now positively paranoid.

 

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Wolf3
Posts: 3,198
Registered: ‎01-24-2010
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Re: Too many cards - which one to close?

I don't see any problem in closing any card which you don't intend to use. if you have very good credit.    You should be able to get approved for CC you would rather have.  You might consider trying to consolidate the CL on some of the multiple cards per bank. 

 

If you are rebuilding or building credit, it is better to hold on to them to establish good credit history, and wait before closing them. 


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