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Member
Posts: 22
Registered: ‎09-27-2010
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When To Close SubPrime Accounts

I have 2 cards that were acquired in the course of rebuilding my credit. HSBC $300 and Total Visa $300. Last week I acquired 3 New Cards: Discover More $3000, Walmart Discover $700, and Home Depot $1000. My two subprime cards never give increases. The Total Visa I've had since 2005 and the HSBC since 2008. My oldest account is my Student Loan from 1998. I'm not worried about losing length of history as both cards will stay on my credit report for 10 years. But I'd like to know if my utilization will be affected in any way. Both subprime cards have $0 balances (never use them) but i'm paying a $59 annual fee per year on the HSBC and $10 per month (subcription fee) on the Total Visa which is INSANITY!!! So when should I close them?

 

Other Accounts

Mortgage, Car, Capital One 1K CL (bal $198), Ann Taylor $700 CL (bal $32) as of today, Macy's $500 CL.

 

No Collections, 1 late payment 6 months ago due to mailing error.  

As of 5/19/2011
FICO TU: 628
FICO EQ: 625
FAKO EX: 655



Starting Score: 657
Current Score: 657
Goal Score: 760


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Established Contributor
Posts: 736
Registered: ‎07-07-2010
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Re: When To Close SubPrime Accounts

Are those your real ficos? Were those the scores you got the discover more with?

__________________________
01/11/2011: FICO:TU: 746
12/14/2010: FICO:EQ: 744
08/12/2011: FICO:EXP: 766
Member
Posts: 22
Registered: ‎09-27-2010
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Re: When To Close SubPrime Accounts

[ Edited ]

FICO Yes. Those are real scores and yes just applied last week and was approved for 3K. Why do you ask?

As of 5/19/2011
FICO TU: 628
FICO EQ: 625
FAKO EX: 655



Starting Score: 657
Current Score: 657
Goal Score: 760


Take the FICO Fitness Challenge

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Posts: 17,026
Registered: ‎07-14-2009
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Re: When To Close SubPrime Accounts

 


shoediva wrote:

FICO Yes. Those are real scores and yes just applied last week and was approved for 3K. Why do you ask?


May I ask where you got your scores? The reason that question is asked so often is that there are many, many sites that will sell you "credit scores" but they are not FICO credit scores. That makes all the difference.

 

 

 

 

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772
You can do the same thing with hard work


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Posts: 28,098
Registered: ‎04-01-2007
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Re: When To Close SubPrime Accounts

I'd close the one with the $10/ month "subscription fee" (sheesh, what a term) as soon as the new cards report, since it's costing you money every month. Close the one with the AF the month before the fee is due again. Make sure that both are paid off and show a $0 balance before you close (print the screen showing this), and when you close, be sure to get them to agree to send a letter stating that the account is closed at your request and paid in full. (You just never know.)

 

Your total util can go up if you have balances on your other cards, so do the math on that first, so you know what's coming.

 

To calculate util, first you add up all the CL's on your open cards. So $300 + $300 + $3000 + $700 + $1000 + $1000 + $700 + $500 = $7,500 total CL, once the new cards show up on your reports. (They have to be reporting to help your util.) Once you dump the first two, total CL will be $6,900.

 

Then you add all the reported balances on your cards, the balances that show on your reports. So $198 + $32 = $230.

 

Total util with all the cards: $230 / $7,500 = 3.1%, rounding up to 4%.

 

Total util after closing those two: $230 / $6,900 = 3.3%, rounding up to 4%.

 

So no real difference, assuming that you don't have higher balances report. Again, be sure to wait for the new cards to report, since they have good CL's.

 

Nice job!

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Established Contributor
Posts: 832
Registered: ‎03-20-2008
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Re: When To Close SubPrime Accounts


marinevietvet wrote:

 


shoediva wrote:

FICO Yes. Those are real scores and yes just applied last week and was approved for 3K. Why do you ask?


May I ask where you got your scores? The reason that question is asked so often is that there are many, many sites that will sell you "credit scores" but they are not FICO credit scores. That makes all the difference.

 

 

 

 

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772
You can do the same thing with hard work



The EX score can't be a real fico unless they got it before 2-14 of this year. (with a few exceptions)

Established Contributor
Posts: 536
Registered: ‎03-17-2010
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Re: When To Close SubPrime Accounts

 


MsKiwi wrote:

marinevietvet wrote:

 


shoediva wrote:

FICO Yes. Those are real scores and yes just applied last week and was approved for 3K. Why do you ask?


May I ask where you got your scores? The reason that question is asked so often is that there are many, many sites that will sell you "credit scores" but they are not FICO credit scores. That makes all the difference.

 

 

 

 

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772
You can do the same thing with hard work



The EX score can't be a real fico unless they got it before 2-14 of this year. (with a few exceptions)


...before 02/14 of last year, rather :smileyhappy:

 

Moderator
Posts: 17,026
Registered: ‎07-14-2009
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Re: When To Close SubPrime Accounts

 


MsKiwi wrote:




The EX score can't be a real fico unless they got it before 2-14 of this year. (with a few exceptions)


 

Actually it was February of 2009 that Experian stopped selling scores to consumers.

 

And if the OP got the score from a lender it is valid. That's why I asked the souce for all the scores.

 

 

 

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772
You can do the same thing with hard work


 

 

Member
Posts: 22
Registered: ‎09-27-2010
0

Re: When To Close SubPrime Accounts

[ Edited ]

FAKO scores my apologies. Pulled from Identity Guard. I'm thinking of making changes to my monitoring subscription. So should I use MyFico?

 

Another question. Does utility only apply to Credit and Store Cards?

As of 5/19/2011
FICO TU: 628
FICO EQ: 625
FAKO EX: 655



Starting Score: 657
Current Score: 657
Goal Score: 760


Take the FICO Fitness Challenge

Moderator
Posts: 17,026
Registered: ‎07-14-2009
0

Re: When To Close SubPrime Accounts

 


shoediva wrote:

FAKO scores my apologies. Pulled from Identity Guard. I'm thinking of making changes to my monitoring subscription. So should I use MyFico?


 

Here is a CMS Guide that might help you.

 

 

 

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772
You can do the same thing with hard work


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