Too many credit cards.... Yikes! :/

[Stralem]

You already took the hard pull, so the damage is done. Once they report, they'll help your utilization tremendously, which constitutes a much larger portion of your FICO score than number of inquiries. Closing them at this point would eliminate that boost and leave you inquiry-scarred. Just keep them for now, use them for a year, then like another poster suggested, kick them to the curb once you begin acquiring decent bank cards.

[changingmantra2]

Congratulations on getting back into the game - and for having some discernment.   "I think the reason why I did such a major app spree is because I was limited to credit for 2 years."  It is great that you realize this - and I have the opinion around here that is quite unpopular - CLOSE accounts that you are not using!  Yes, in the beginning - many of us start collecting accounts - happy someone will give us credit again.

I am thankful that my own GEMB collection of cards helped me rebuild.  But after a while, I began to not just acquire credit, but to develop credit maturity.  I stopped applying for cards just to get more and more and higer limits.  When I tanked my credit, it had NOTHING to do with my CC limits - it had to do with credit irresponsibility.  Read these boards - and the one thing that you find often lacking  in  very many rebuilders - is patience - and yet it is patience - time - and proven sound credit decisions that help you improve your credit!

For me - getting rid of all of my HSBC cards - one Cap card- and all GE cards I was not using - helped to open up the way for better cards and higher credit limits on the cards that I did keep.  A couple of years ago, I reduced my stack of store cards to: JCP - Amazon - Paypal and Walmart - Firestone, all accounts that I actually used.  I had Discover - Barclays - and one Cap 1 as my bank cards.  The same year (2012) I closed  the last Cap 1 because -  in the few months I had Discover and Barclays they had grown more with me than the Cap1 had in 4 years.  Two cards were fine especially since my credit goal was not to have lots of cards - but to have good enouh credit to have "prime" cards - and even though I had a BK still showing - that Discover gave me an account - let me know I was doing something right.  

Closing low-credit accounts that I was not using and/or were not growing with me did not hurt me at all.  I still have the SAME store cards - with limits that have grown from a few hundred to several thousands on each -  and quality bank cards with great starting limits - and that grow with me.  I just consolodated two Barclays CLs last week - and closed the oldest account - I have been trying to do the same with Citi - but they will not allow a consolidation.  I will get all I can out of one of the Citi Cards until the end of the year - and then close it.  It is not bringing anything to me that one of my other Visas cannot not; and it is one less card to manage that I am not actually using!

I think using a handful of cards responsibly 1. shows your own maturity 2. demonstrates that maturity to creditors 3. allows you to look less risky to creditors 4. gives you time to really to mature the credit you have - earning higher CLIs  5. Which then helps you to earn higher initial credit lines and other benefits when you DO apply for new credit.

If you check the signatures of some of the big-ballers here - folks with prestine credit - you will see that not only do they carry some of the most elite cards - with some of the highest credit limits - but you will also find that they have "few" CCs, most of them they have had for years.  You do not see them chasing after credit - or CLIs -  Even if they did that once, they no longer (have )to do it. 

Pick 4-6 of those accounts to keep - Work them well (use them, keep utilization down, make timely payments)- and then see what things look like in a year or so. It is good that you are asking these questions!

[r3buildit]

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@changingmantra2 wrote:

Congratulations on getting back into the game - and for having some discernment.   "I think the reason why I did such a major app spree is because I was limited to credit for 2 years."  It is great that you realize this - and I have the opinion around here that is quite unpopular - CLOSE accounts that you are not using!  Yes, in the beginning - many of us start collecting accounts - happy someone will give us credit again.

I am thankful that my own GEMB collection of cards helped me rebuild.  But after a while, I began to not just acquire credit, but to develop credit maturity.  I stopped applying for cards just to get more and more and higer limits.  When I tanked my credit, it had NOTHING to do with my CC limits - it had to do with credit irresponsibility.  Read these boards - and the one thing that you find often lacking  in  very many rebuilders - is patience - and yet it is patience - time - and proven sound credit decisions that help you improve your credit!

For me - getting rid of all of my HSBC cards - one Cap card- and all GE cards I was not using - helped to open up the way for better cards and higher credit limits on the cards that I did keep.  A couple of years ago, I reduced my stack of store cards to: JCP - Amazon - Paypal and Walmart - Firestone, all accounts that I actually used.  I had Discover - Barclays - and one Cap 1 as my bank cards.  The same year (2012) I closed  the last Cap 1 because -  in the few months I had Discover and Barclays they had grown more with me than the Cap1 had in 4 years.  Two cards were fine especially since my credit goal was not to have lots of cards - but to have good enouh credit to have "prime" cards - and even though I had a BK still showing - that Discover gave me an account - let me know I was doing something right.  

Closing low-credit accounts that I was not using and/or were not growing with me did not hurt me at all.  I still have the SAME store cards - with limits that have grown from a few hundred to several thousands on each -  and quality bank cards with great starting limits - and that grow with me.  I just consolodated two Barclays CLs last week - and closed the oldest account - I have been trying to do the same with Citi - but they will not allow a consolidation.  I will get all I can out of one of the Citi Cards until the end of the year - and then close it.  It is not bringing anything to me that one of my other Visas cannot not; and it is one less card to manage that I am not actually using!

I think using a handful of cards responsibly 1. shows your own maturity 2. demonstrates that maturity to creditors 3. allows you to look less risky to creditors 4. gives you time to really to mature the credit you have - earning higher CLIs  5. Which then helps you to earn higher initial credit lines and other benefits when you DO apply for new credit.

If you check the signatures of some of the big-ballers here - folks with prestine credit - you will see that not only do they carry some of the most elite cards - with some of the highest credit limits - but you will also find that they have "few" CCs, most of them they have had for years.  You do not see them chasing after credit - or CLIs -  Even if they did that once, they no longer (have )to do it. 

Pick 4-6 of those accounts to keep - Work them well (use them, keep utilization down, make timely payments)- and then see what things look like in a year or so. It is good that you are asking these questions!

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Thank you so much for your detailed response! I appreciate all of your help and knowledge in this topic. You think that I should close out cards now? The ones that I dont use? I know for sure that I am not going to use a few of these. 

[changingmantra2]

You are welcomed!  And yes, I would close them.  And then nurture the remaining ones - GE is generous with CLI - Just do not keep going back to well without demonstrating responsibility and likelihood of actually using a higher CL.  Keep your utilization low.   It is your utilization that will be impacted by closing your cards.  And be careful about reading the threads here about new approvals.  I do not know about you, but I find that coming there is a mixed-bag for me.  I learn a great deal and did not even KNOW we could rebuild credit after BK until I stumbled upon this site in 2008. But reading about others' "success," triggers a dangerous app craving in me.  I have an addictive personality - so when I get in this  "more, more, more" mindset after coming here - I step away from the site  for a few weeks or months- and just live and use what I have learned to grow my credit in healthy ways. 

When you are just starting out - and you see all of these 750 plus scores and listing of "prime" cards - and "approvals" - it feels like you will never get there; at least it did for me. But you get then - you really do - some faster than others - but it does happen.  I think you are off to a great start!  Your scores are good - now work the cards you have!

[eagle2013]

Have any of them reported? I would close some of them immediately that you know you will absolutely not use frequently.

Store cards are great to rebuild - I have 2 technically (Old Navy and Macy's), and one (Nordies) turned into a visa. There is a FICO "ding" for too many charge/store accounts on your report. 

[coldnmn]

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@Shogun wrote:

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@baller4life wrote:

GARDEN GARDEN GARDEN for at least 6-12 months. Your accounts need to age.

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I like this answer!

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I do to!

[-Wade-]

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@r3buildit wrote:

Here is a little background:

I started off with a score of 474,480,425 about 2 years ago. I had about 10 collection accounts so I started to rebuild my credit by paying off all collection accounts. I still have 1 that I am fighting to get removed because I was underage when it was reported. It is a $42 collection account for DVDs(not sure what that is). I had a lot of my collection accounts removed because I disputed them after I paid them and the company could no longer verify that it was my debt . Those deletions did wonders to my score. I have about 5 years of credit history and my average is 2.5 years for all the new accounts. I checked my score about a month ago via my identity theft protection plan and my highest was 689,659,661 so I came on here and saw that a lot of people were doing APP SPREES... So I jumped on the bandwagon...lol and did one to.

Lets just say I got a little too happy and did a major app spree... I think the reason why I did such a major app spree is because I was limited to credit for 2 years..

Results of app spree:

Old Navy $400

Walmart $900

Amazon $900

Target $300

Gettington $350

Paypal $800

Toys R us $200

Childrens Place $750

Jcpenney $500

Capital One Journey $500

Express $350

Sports Authority $300

HSN $2000

Care credit $1000

Victoria Secret $250

I made the mistake of applying for department store cards instead of the big boys first. Got denied for Barclays and Chase due to too many new accounts and not enough credit history. My score already took a 12 point drop for all the hard pulls. Half of these stores I dont really shop at..... I really need to go in the garden for a year right? I am so upset at myself.. 

My Question

Are these credit cards going to affect me in the long run? (if i use them or not)

Should I close a few?

What should I be utilizing? 

How long is it going to take for me to apply for new credit and get approved?

Thank you so much in advance! 

Please feel free to chew me up for this mess I got going on...

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Congrats on your approvals Now you need to Garden 12 months min.

[Josh2942]

The bad news first. Your clearly banging on the door of low limit hell right now. I wouldn't apply for a prime card till 1-1.5 years for the most optimal CLIs on current cards and history. The good news is most of them are GE backed and will grow very quickly depending on your usage. You can get soft pull CLIs every 4 months except the Care credit it's a hard pull. The journey card will grow on the seventh statement. Garden long and we'll my friend!

[HiLine]

Gardening is the best, if not the only helpful, thing you can do right now to improve your credit, apart from the obvious "Never miss a payment" motto. I have a shorter credit history with more accounts and I have not been denied for anything for the past year except a duplication of a card I already had. The lineup I have includes cards from Amex, Chase, Barclays, Cit, and a host of other banks, but no stores ...

I do think I have too many cards though, and was going to cancel a few but the banks gave me retention offers generous enough for me to keep the cards around for another year. But I eventually need to close some cards; my total credit limit exceeds my income by a significant margin. I'm just waiting for the first bank to deny me a retention offer.

[ready13]

every six months of good credit = no lates or no missed at a minial payment if the util stays or is below the 20% mark is still able to recieve more credit even if you do not use the card much but need to add to your new credit a larger purchase whcih can be your reason after the six months to wanting more credit and they are able to do so within the 500$ mark to add more credit to your overall total which brings down the total util % used over time as you pay down your account balances and when they are past the 50% mark of usage and you hit paying off the card within the 49% util of each individual card the total score begins to get higher with time of course but its all just doing the regular month to month average payments nothing out of this world. They are looking for consistency in the responsibility and the total expected behavior to pay the money owed regardless of the behvior unless it becomes so crazy you are paying down in huge chunks with no way to show that you have a way to consistenly pay down a reasonable amount each month and by reasonable i mean the minimum balance amount expected by each card. Paying it off in one month does not add to the total amount of time you have to display that you will pay it so with that you are paying the interest and to me that made no sense when i loved lovedloved owing nothing and paying it off all cash but had no way to prove i was grea at barrowing money and paying it so look at it like an investment as the interest you are having to pay to get the chance to show the bigger companies and lenders etc. that you are able to aquire larger amounts and are able to pay them over time consistently.