closing cards advice?

[janie1234]

Over the past 2 years i have applied for several cards (shopping cart trick) and 2 capital one and barclay cards.  So between all my cards...14 of them... i have 33K CL. More than enough credit. Here is my question.  I have my first ever 2005 Capital One (old orchard bank) w/ a terrible 800 CL and 49$ annual fee. I have a fingerhut card 1150 cl(which i will never use) but is 8 years old.  I have a paypal 500 cl (2 years old) and express 700 cl (almost a year old).  If i close those cards i will loose 3,150$ in credit, but that still leaves me 30K.  I want to close them, but i'm scared of the hit my credit will take.. THAT said, I do not plan any major bank financed purchases in the next year or 2, so what would you do????  I also have 2 other capital one cards, 1 has 3700$ credit limit, which is great but a 39$ annual fee... the other is 3500$ w/ a 39$ annual fee... they are the only cards i have w/ an annual fee.. what do you suggest?

[Florida1990]

I would close those cards seeing as they will continue to report positively on your credit for the next ten years. The only thing that will be affected as you stated will be your overall credit limit. I just closed two of them my self about two months ago and my credit did not take a hit. I would also try and call the EO for the removal of the annual fee; which can be done because I had it done with one of my secured card accounts with capital one. If they can remove the annual fees then you will be all set. If they seem like they do not want to do it you can use the scare tactic of saying I will take my business elsewhere if nothing can be done. Good luck and congrats on everything.

[Dw4250]

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@janie1234 wrote:

Over the past 2 years i have applied for several cards (shopping cart trick) and 2 capital one and barclay cards.  So between all my cards...14 of them... i have 33K CL. More than enough credit. Here is my question.  I have my first ever 2005 Capital One (old orchard bank) w/ a terrible 800 CL and 49$ annual fee. I have a fingerhut card 1150 cl(which i will never use) but is 8 years old.  I have a paypal 500 cl (2 years old) and express 700 cl (almost a year old).  If i close those cards i will loose 3,150$ in credit, but that still leaves me 30K.  I want to close them, but i'm scared of the hit my credit will take.. THAT said, I do not plan any major bank financed purchases in the next year or 2, so what would you do????  I also have 2 other capital one cards, 1 has 3700$ credit limit, which is great but a 39$ annual fee... the other is 3500$ w/ a 39$ annual fee... they are the only cards i have w/ an annual fee.. what do you suggest?

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I think you have the right idea...ditch some of those small CL store cards!  Unless you shop at a particular place often (maybe once a month or more), store cards are kind of a waste IMHO.  

Your scores look decent, maybe try to add 1-2 prime cards with no AF.  Sallie Mae would be my 1st choice...Discover IT, Chase Freedom, Barclayrewards and BOA Cash or Travel also come to mind.  AMEX BCE or ED might be in your range too (although they usually pull EX).

Don't worry about the AAofA hit...they will stay on your report for 10 years which is plenty of time to get well established with some better cards.

[janie1234]

DW4250,

I just applied yesterday for USAA american express and was given 7K limit, and the USAA mc and was given the same limit, both prime cards, which was why I am looking to ditch the non prime ones. 

[Dw4250]

Awesome! Congrats on the approvals.

In that case I'd ditch most if not all of those cards (at least the ones you use never/very rarely). You shouldn't pay an AF unless you are getting something back in return (rewards).

[taxi818]

I agree. close them. the small hit you take now will be better in the long run . especially  you have noting coming up in 2 years.

no way does it hurt your util. plus they will be positive tradelines for 10 years.

so yes. close em.

[jamesdwi]

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@janie1234 wrote:

Over the past 2 years i have applied for several cards (shopping cart trick) and 2 capital one and barclay cards.  So between all my cards...14 of them... i have 33K CL. More than enough credit. Here is my question.  I have my first ever 2005 Capital One (old orchard bank) w/ a terrible 800 CL and 49$ annual fee. I have a fingerhut card 1150 cl(which i will never use) but is 8 years old.  I have a paypal 500 cl (2 years old) and express 700 cl (almost a year old).  If i close those cards i will loose 3,150$ in credit, but that still leaves me 30K.  I want to close them, but i'm scared of the hit my credit will take.. THAT said, I do not plan any major bank financed purchases in the next year or 2, so what would you do????  I also have 2 other capital one cards, 1 has 3700$ credit limit, which is great but a 39$ annual fee... the other is 3500$ w/ a 39$ annual fee... they are the only cards i have w/ an annual fee.. what do you suggest?

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as others have said, contact the CapOne EO to get your annual feee removed, keep the others open, no reason to close, I know it won't effect your AAoA for 10 years, but on the other hand if they stay open with zero activitity for a couple more years, it looks better.  use the paypal card on ebay buy cellphone charge cables, or other small stuff, ask for CLI's every 4 month, SP cli help you stay in the garden....   just my opinion, no real harm in closing them. But there is no reason to pay an AF on a crappy card.