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Frequent Contributor
Posts: 390
Registered: ‎01-11-2013
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too many credit cards? close account? 2 q's?

Hello. How many accounts is too many?
I currently have 4 credit cards, and 4 department store cards. Total of about 10k cl.
I recently applied for a personal loan and the loan agent suggested that I only have 1 credit card open and close the rest of my accounts because the way the bank look at my report was they had to consider the worst case scenario of me maxing out all of my credit cards and not be able to make my minimum payment and also the payment for the personal loan.
everything that I have read suggest she is not correct, however I was not approved for the loan due tothat reason and another reason.

my other question is I have a 300 dollar credit card from Capital One that I opened in 2008 and about 3 years ago I missed a few payments and have a 120 day late payment on my credit report. Although this is my oldest credit card account, this is the only account that I have that has a negative mark on it. Is it worth closing this account or would it even matter? I know it would decrease the way of my credit history

also does anyone suggest trying the goodwill letters and how they had success with it? Thank you again for all of your help.

9/2013: Fico EQ 676, EXP 686, Fico TU 686.
NFCU Flagship Sig. $14k..NFCU CashRwdsSig $14k..NFCU LOC $12.5k..USAA Amex 4k..AMEX Green NPSL..Discover IT $1.5k...BofA Cash Rewards123 $2.5k...Southwest Premier $2k..Chase Freedom $1.5k..CareCredit $3.5k..Cap1-$1.5k..HSBC $300...Lowes $1.5k...WalMart $1.5k...JCP $1k..Chevron $1.1k..Kays/Jerrod - $5k split. around 8% Util. Want to get in the 700's in 2013! Have three old paid charge offs. 15-20inq.. LAST APP 8/29/13
Senior Contributor
Posts: 6,276
Registered: ‎08-16-2012
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Re: too many credit cards? close account? 2 q's?

[ Edited ]

I'd not close them!

Grow them! Make small purchases, pif, and get cashback on everyday expenses if you can.

I'd avoid the personal loans either way.

Also, I'd suggest disputing <snip> on your credit reports; that can be done for free on all of the three major credit bureaus' websites.

 

(Mod Edit): A gentle reminder -- On this forum, we can only urge members to dispute negative things that are incorrect; we cannot encourage disputing negative information that is accurate.

Good luck :-)

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
Frequent Contributor
Posts: 390
Registered: ‎01-11-2013
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Re: too many credit cards? close account? 2 q's?

Thanks. Will the 120day late fall off automatically after 7 years?

9/2013: Fico EQ 676, EXP 686, Fico TU 686.
NFCU Flagship Sig. $14k..NFCU CashRwdsSig $14k..NFCU LOC $12.5k..USAA Amex 4k..AMEX Green NPSL..Discover IT $1.5k...BofA Cash Rewards123 $2.5k...Southwest Premier $2k..Chase Freedom $1.5k..CareCredit $3.5k..Cap1-$1.5k..HSBC $300...Lowes $1.5k...WalMart $1.5k...JCP $1k..Chevron $1.1k..Kays/Jerrod - $5k split. around 8% Util. Want to get in the 700's in 2013! Have three old paid charge offs. 15-20inq.. LAST APP 8/29/13
Regular Contributor
Posts: 123
Registered: ‎01-15-2009
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Re: too many credit cards? close account? 2 q's?

[ Edited ]

The advice that the loan officer gave you is the exact opposite of what my CU loan officer told me when I went in and app'd for a car loan.

 

I was almost unable to be considered for a loan there....he had to get special permission from his boss to take my app. He told me that I had too few credit lines. At the time, I only had 2 CC's, and he said that, at minimum, they normally required at least 4, and preferably 5 or more, reported lines.

 

Thankfully, due to my decent credit score and income, I was given a chance. Also never a late, and AAOA of 7 years on the 2 CC accounts. I received their lowest available rate at the time, 1.74% for 60 months (17.5 K).

 

That experience jolted me into action...I went on a big app spree that very same night! Never again would I be without plentiful credit lines... :smileyvery-happy:

 

I have noticed that Credit Karma STILL whines that I have a below-average # of total accounts. I can't wait to hear from the rest of you about this subject.

 

All 3 bureaus (per Amex CreditSecure FAKO) are still 748 (as of 12/19/13). Cards: Discover It, $12,100, Chase Freedom $3,300, Chase Amazon $1,500, Walmart store $11,000, AMEX Zync NPSL, Costco Amex $14,700. US. Bank Cash +, $5,000. AMEX SPG $6,000, PenFed Plat. Cash Rewards $17,500, PenFed P-LOC $10,000, Citi Forward $5,100, Chase Slate $5,000, Old Navy, $2,200.
Valued Contributor
Posts: 1,167
Registered: ‎05-17-2010
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Re: too many credit cards? close account? 2 q's?

Whoever that loan officer is advised you horribly.  1 open TL is not enough.  If you wanted to close one or two that have annual fees, then that should be OK...otherwise, stick to what you have and build on it.  

FICO Scores Updated 06/15 EQ08 754 EX08 751 TU08 836
Valued Contributor
Posts: 1,673
Registered: ‎11-11-2012
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Re: too many credit cards? close account? 2 q's?

Problem is that this is a YMMV situation.   The OP states that this WAS one of the reasons given for denial, some lenders have different policies.   So if you are in a situation where you HAVE to get that loan, try to do as they say!  I agree in general people want more than one line, but here the Loan Officer had the file, so the advice might have been targetted to that particular situation, whereas we are totally in the dark.

Valued Contributor
Posts: 1,167
Registered: ‎05-17-2010
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Re: too many credit cards? close account? 2 q's?


bs6054 wrote:

Problem is that this is a YMMV situation.   The OP states that this WAS one of the reasons given for denial, some lenders have different policies.   So if you are in a situation where you HAVE to get that loan, try to do as they say!  I agree in general people want more than one line, but here the Loan Officer had the file, so the advice might have been targetted to that particular situation, whereas we are totally in the dark.


The only way it makes sense is if the OP is maxed out on all cards and the personal loan is actually a debt consolidation loan.  Otherwise, no reputable loan officer is going to tell you to close all but one of your cards just to qualify for a normal personal loan.  

FICO Scores Updated 06/15 EQ08 754 EX08 751 TU08 836
Frequent Contributor
Posts: 390
Registered: ‎01-11-2013
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Re: too many credit cards? close account? 2 q's?

My utilization was about 10% and it was a personal loan for car repair

9/2013: Fico EQ 676, EXP 686, Fico TU 686.
NFCU Flagship Sig. $14k..NFCU CashRwdsSig $14k..NFCU LOC $12.5k..USAA Amex 4k..AMEX Green NPSL..Discover IT $1.5k...BofA Cash Rewards123 $2.5k...Southwest Premier $2k..Chase Freedom $1.5k..CareCredit $3.5k..Cap1-$1.5k..HSBC $300...Lowes $1.5k...WalMart $1.5k...JCP $1k..Chevron $1.1k..Kays/Jerrod - $5k split. around 8% Util. Want to get in the 700's in 2013! Have three old paid charge offs. 15-20inq.. LAST APP 8/29/13
Senior Contributor
Posts: 3,914
Registered: ‎10-02-2012
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Re: too many credit cards? close account? 2 q's?

HATE WHEN AGENTS GIVE YOU BAD ADVICE LIKE WHAT THE HECK AND YOU CALL YOURSELF A "CREDIT EXPERT OR ADVICE GIVER" NEXT TIME TELL HIM/HER "UMMM YOU MIGHT WANT TO CHECK OUT MYFICO.COM CAUSE I THINK YOU NEED IT "LMBO!!!!

Valued Contributor
Posts: 1,673
Registered: ‎11-11-2012
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Re: too many credit cards? close account? 2 q's?


BearsAndTurtlesRtheBest wrote:

HATE WHEN AGENTS GIVE YOU BAD ADVICE LIKE WHAT THE HECK AND YOU CALL YOURSELF A "CREDIT EXPERT OR ADVICE GIVER" NEXT TIME TELL HIM/HER "UMMM YOU MIGHT WANT TO CHECK OUT MYFICO.COM CAUSE I THINK YOU NEED IT "LMBO!!!!


But then you open to the response "How much is myfico.com lending you then?"

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