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Would you close some cards?

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John86
Established Member

Would you close some cards?

Hi All,

 

I want to first thank those who responded to me in my other thread about applying for a credit union.  I just got the NFCU Cash Rewards for 14k and it’s my highest limit.  I was thinking the other day, that maybe I should close some cards that I have no use for? A lot of the cards that I have, I received while rebuilding my credit…some were just to have.  I ultimately just want to have maybe 4 or 5 cards and have the limits grow with me (maybe 3 prime cards and a couple deptartment store cards)

 

I understand that it will affect my AAoA in 10 years and will affect my overall utilization. 

 

Macys (2004) – 600 CL – Horrible limit but oldest credit line. I want to keep this only for the age.

 

Walmart (2010)- 800CL – I want to close this one

 

Victoria’s Secret (2012)-700CL- I want to close this one

 

Captial One (2009) – 500CL – I want to close this one, I emailed the EO via the email address of the “CEO” and I never received a response.

 

Discover (2012) – 1300CL – I want to close this one, I don’t really use it anymore. 

 

Amazon(2010) – 2500CL – I’m on the fence about this one as I use Amazon a lot, but I don’t see how it’s better

Than my CSP.

 

Jared(2012) – 5000CL – I don’t ever plan on using this card again, but it’s one of my highest CLs

 

CSP(2013) – 5000CL – Love this, I’m going to keep it.

 

Hyatt (2013) -5000CL- Love this, I’m going to keep it

 

American Express BCP (2013)-1000CL- I don’t use this enough and they won’t increase my CL. I prefer to use my CSP. I want to close this one.

 

American Express Gold (2013)– NPSL- I like my Gold for when I know I’m going to pay off bigger items quickly,  Purchase Protection and TicketMaster. But it doesn’t get as much use as y Hyatt and CSP. I want to keep this one.

 

Citi Diamond Preferred (2013) – 3000CL – I originally got this card for a BT, but now I really don’t need it.  I want to keep Citi, but hopefully PC to another card with better rewards for travel. 

 

Merrick Bank (2009) – 2500CL- This card does nothing for me at all, but it keeps growing. I’m really unsure on what to do about this one. I probably won’t use it again.

 

Which cards would you close? If any?  Thanks in advance for your opinions.

Message 1 of 12
11 REPLIES 11
j_gizibe
Established Member

Re: Would you close some cards?

I heard that closing doesn't really affect the AAoA because it will still report positively, but that being said. Other than the credit limits, things I would consider is the APR on those cards and whether or not there's an annual fee. 

 

I have a Diamond Preferred card too and want to close it eventually or PC it because I don't go to concerts and I was mad to find the points couldn't be redeemed for cash... 

 

For the Cap One, you can request a CLI online. You could try that and see (soft pull), and if not, I would close that one too. 

 

In short, I'd probably close out all the ones with small limits that you're positive you're not going to use. As for the others, as I said before, I would look at the APR & annual fee to consider whether or not it's worth it. If it's not costing you anything, I'd probably just keep them and sock drawer.

Starting Score: 2/14 EX 619 EQ 679 TU 660 (all from myfico)
Current Score: 6/15 TU 671 (Discover) EQ 665 (Citi)

Chase Freedom $2,200 | BOA Cash Rewards $1,500 | Discover IT $7,500 | Citi Diamond Preferred $2,750 | Citi DoubleCash $1200 |Amex BCE $1,000 | Amazon Store Card $1,300 | Capital One QS1 $1,250| QS1 $1,250 | QS1 $1,250 | Care Credit $1,000 | Bill Me Later $840 |
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Message 2 of 12
parakleet
Valued Contributor

Re: Would you close some cards?


@John86 wrote:

Hi All,

 

I want to first thank those who responded to me in my other thread about applying for a credit union.  I just got the NFCU Cash Rewards for 14k and it’s my highest limit.  I was thinking the other day, that maybe I should close some cards that I have no use for? A lot of the cards that I have, I received while rebuilding my credit…some were just to have.  I ultimately just want to have maybe 4 or 5 cards and have the limits grow with me (maybe 3 prime cards and a couple deptartment store cards)

 

I understand that it will affect my AAoA in 10 years and will affect my overall utilization. 

 

Macys (2004) – 600 CL – Horrible limit but oldest credit line. I want to keep this only for the age.

 

Walmart (2010)- 800CL – I want to close this one

 

Victoria’s Secret (2012)-700CL- I want to close this one

 

Captial One (2009) – 500CL – I want to close this one, I emailed the EO via the email address of the “CEO” and I never received a response.

 

Discover (2012) – 1300CL – I want to close this one, I don’t really use it anymore. 

 

Amazon(2010) – 2500CL – I’m on the fence about this one as I use Amazon a lot, but I don’t see how it’s better

Than my CSP. Not sure if you have the store or the chase version but it really depends on whether you want cash back or UR points. Personally, I stopped using my chase amazon card because I'm focused on racking up UR points for travel.

 

Jared(2012) – 5000CL – I don’t ever plan on using this card again, but it’s one of my highest CLs

 

CSP(2013) – 5000CL – Love this, I’m going to keep it.

 

Hyatt (2013) -5000CL- Love this, I’m going to keep it

 

American Express BCP (2013)-1000CL- I don’t use this enough and they won’t increase my CL. I prefer to use my CSP. I want to close this one.

 

American Express Gold (2013)– NPSL- I like my Gold for when I know I’m going to pay off bigger items quickly,  Purchase Protection and TicketMaster. But it doesn’t get as much use as y Hyatt and CSP. I want to keep this one.

 

Citi Diamond Preferred (2013) – 3000CL – I originally got this card for a BT, but now I really don’t need it.  I want to keep Citi, but hopefully PC to another card with better rewards for travel. 

 

Merrick Bank (2009) – 2500CL- This card does nothing for me at all, but it keeps growing. I’m really unsure on what to do about this one. I probably won’t use it again.

 

Which cards would you close? If any?  Thanks in advance for your opinions.


There are two schools of thought on closing cards - SD (sock drawer) or close cards that you don't use. I personally would close the lower limit cards that I have no need for. As for the cards that help with utilization, you could keep them whil you grow the CL on your primes and then cut them loose. It's really a matter of personal preference.


Gardening since 7/16/14
Current: EQ 711 7/13/14; EX 724 TU 721 6/19/14
Goal: 760+
Message 3 of 12
youngandcreditwrthy
Senior Contributor

Re: Would you close some cards?

I'd close Macy's (closing will have NO effect on aaoa), VS, and Capital One.

 

 

HOWEVER, I'd try for a round of soft pull only credit line increases, and ask for HIGH limits. Nothing less than 5000. Dependent on changes in credit lines, you will need to reconsider which accounts to close.

 

One of the most important considerations for me when closing or opening new accounts is the credit line. That has more of an impact on your FICO than most people realize as utilization is VERY important.

 

imo, you should never use more than 10% of any credit line, so a 5000 limit card is really a 500 credit limit card in my eyes lol,

Marriott PR$25k | BCE $24.5K |BankAmericard Visa $25k| BOA Better Bal $17.5k |Wmt Discover $12.5k | BR Visa $17.5k | Amex Delta Gold $10k | Discover IT $10k | Paypal Extras MC $15k | Amazon Store $10k|Smile Gen $7.25k | Dillard's $10k | West Elm $4k| Express $3.05K | Mypoints.com Visa $4.5k | Freedom Visa $1k| Amex Surpass $1k
Message 4 of 12
Revelate
Moderator Emeritus

Re: Would you close some cards?


@youngandcreditwrthy wrote:

I'd close Macy's (closing will have NO effect on aaoa), VS, and Capital One.

 

 

HOWEVER, I'd try for a round of soft pull only credit line increases, and ask for HIGH limits. Nothing less than 5000. Dependent on changes in credit lines, you will need to reconsider which accounts to close.

 

One of the most important considerations for me when closing or opening new accounts is the credit line. That has more of an impact on your FICO than most people realize as utilization is VERY important.

 

imo, you should never use more than 10% of any credit line, so a 5000 limit card is really a 500 credit limit card in my eyes lol,


The OP had it right: there will be no change to AAoA right now, but once you close an account the 10 year clock starts counting down to where the tradeline will fall off your report.  I suggest that's what he was referring to when he stated  "I understand that it will affect my AAoA in 10 years."

 

FWIW I consider pretty much all of the trick tradelines to be junk: if you don't use the VS or similar cards, just trash them.  Amex BCP / others, your choice, but I'm starting to fall to the side of "longer and thicker" is better when it comes to credit history.  I'm probably going to keep my silly DCU secured card till they take it away from me or if I really really need the 2K for whatever reason that's securing it... hopefully I never get to that point.




        
Message 5 of 12
longtimelurker
Epic Contributor

Re: Would you close some cards?


@Revelate wrote:

 

FWIW I consider pretty much all of the trick tradelines to be junk: if you don't use the VS or similar cards, just trash them.  Amex BCP / others, your choice, but I'm starting to fall to the side of "longer and thicker" is better when it comes to credit history. 


On the BCP, if you are not using it, try PCing to the BCE (or Everyday, but don't think that is currently allowed), so you don't pay an AF

Message 6 of 12
Revelate
Moderator Emeritus

Re: Would you close some cards?


@longtimelurker wrote:

@Revelate wrote:

 

FWIW I consider pretty much all of the trick tradelines to be junk: if you don't use the VS or similar cards, just trash them.  Amex BCP / others, your choice, but I'm starting to fall to the side of "longer and thicker" is better when it comes to credit history. 


On the BCP, if you are not using it, try PCing to the BCE (or Everyday, but don't think that is currently allowed), so you don't pay an AF


Oi, good suggestion!  May use something similar someday in my case, thanks for that!




        
Message 7 of 12
John86
Established Member

Re: Would you close some cards?

@ j_gizibe Thanks, I will go online and try the CLI, if not the CapOne is definitely  one I'm going to get rid of.  Citi has been generous, I think it will grow with me.  Just wish I had another card now. I will probably call them about PC'ing at some point.  You are right about looking at the AF on the others. 

 

@parakleet I have the store card for Amazon.  A lot of the cards I don't carry.  I have them in an old wallet but, I was just thinking...why keep them? especially if they're low.  Do you suggest keeping the cards like Discover and Merrick, etc for now until I can get cards like the Amex up?

 

@youngandcreditworthy Thank you.  I'm really apprehensive on closing this line.  I got it when I was 18, I messed up and they brought me down to a 100CL and it's been like that for a long time.  I called in about two weeks ago and they could only raise it to 600 w/o a HP.  I know for now it won't affect me..but in 10 years, this card will be 20 years old...do you still think its worth closing?

 

@Relevate, Thanks!, VS is def on the chopping block as well.  Walmart, CapOne and VS are pretty much guranteed closed cards (unless Cap one can come up to a satisfying CL..which I fear they won't.)

 

@longtimelurker Thank you. That's a good idea...I could probably PC to the BlueSky as well.  I will check on that. 

 

Thanks for all the replies!


 

Message 8 of 12
Dw4250
Valued Contributor

Re: Would you close some cards?

According to Experian, the "high FICO achievers" have between 7-10 open lines of credit.  Take that with a grain of salt, but intuitively it sounds about right.  

 

At the end of the day if you are not using a card, do not intend on ever using a card and it does not help you with UTL, it's probably best to get rid of it.

 

Message 9 of 12
TiggerDat
Valued Contributor

Re: Would you close some cards?

If util is the biggest concern then I would suggest that you identify the cards you really want to keep or PC.  Then I would work on that ASAP.  For the cards which have no use, but might have long histories, instead of closing them CLD them.  For other cards which are short history or have no real use then simply close them.  CLD can have the benefit of reducing your overall exposure.  With all the new accounts I have opened in the last year I have no choice to either CLD or close some accounts to not freak out the companies that I really want to stay with.  I want my new BCP to get a really good limit, but I am sure that Amex will have some issues when they find out about the new lines, especially since the new lines total $16,000 and the credit limit increases total about $10,000.  I will be making a list of which get closed and which get CLD by me before there are any issues.  I pretty much feel there is no need to keep all 3 of my Capital One cards open, even if two are the oldest active lines.  While I am not trying to reach the 800 club any time soon, I do want to boost my score a bit.  I figure reducing my exposure a bit is the first step.

It is by will alone I set my mind in motion.....
Always follow these rules: Only take a HP for a new account. Always use the best rewards card for that reward category. Don't close a card unless you know you really should. Never use more than 35% of a credit limit. Recon as much and as best you can. Use the introductory period to the best advantage. Get the signup bonus. Whenever possible PIF or balance transfer so you pay less in interest. Never give an excellent rating when it is actually the norm. Always look for a discount as more is always better.
Always accept candy from strangers because they have the best candy or from people you know have good candy.
Message 10 of 12
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