cancel
Showing results for 
Search instead for 
Did you mean: 

When to close my sub prime credit cards?

tag
dl9346
New Member

When to close my sub prime credit cards?

Hi,
 
I've been working on my credit since 2003 and started with a Household bank and an Orchard card each having 800 credit lines. Since then my scores have gone to the high 600's and I have an American Express and juniper card with 3,000 credit lines and a Chase rewards with a 5,000 credit line. Should I close the HSBC cards?
 
Thanks
Message 1 of 20
19 REPLIES 19
Neblett
Regular Contributor

Re: When to close my sub prime credit cards?

I think, if you are able to get regular credit cards now (ones without annual fees and that have better interest rates), you should close your sub-prime cards as soon as you can pay the balances down to zero, and before you accrue another annual fee.
Message 2 of 20
Tuscani
Moderator Emeritus

Re: When to close my sub prime credit cards?

Agreed. The only reason I would close a card is if It were costing me money. Time for you to close them out now that you have graduated from sub-prime!


Message Edited by Tuscani on 04-29-2007 04:02 PM
Message 3 of 20
MM1234
Regular Contributor

Re: When to close my sub prime credit cards?

You can call in once they hit you with a fee and ask them to waive it for that year or you will close it. I did that with 1 card I have that I like for miles ( i use them alot ) and they did. The only thing is you need to remember to call them next year and so on. The extra credit limit helps your score / over all Credit Limit ratio. Even if you get a year out of them its fine. If they dont do it next year ( or say no this year ) then cancel at that time.
Message 4 of 20
Anonymous
Not applicable

Re: When to close my sub prime credit cards?



MM1234 wrote:
You can call in once they hit you with a fee and ask them to waive it for that year or you will close it. I did that with 1 card I have that I like for miles ( i use them alot ) and they did. The only thing is you need to remember to call them next year and so on. The extra credit limit helps your score / over all Credit Limit ratio. Even if you get a year out of them its fine. If they dont do it next year ( or say no this year ) then cancel at that time.

 
I have to agree with this statemnet but with a little something to add.  House hold has just come out with a near prime card as well that offers 2% cash back no annual fee and a pretty decent interest rate as well as a high limit.  I would ask if they could convert to this product if possible.  Their fine print says you are limited to two cards with them so if not, I would probably close oen and wait for a pre app on the newest card.
 
I swore off household after being under their subprime umbrella but this was an offer too good to pass up for a cash back.  If  you can keep them waiving the annual fee thats good byut a card stops having an effect on your score after abuot 2 years.  Yo won't lose the history by closing the account but utilization on your remaining cards should be a major consideration if that will be a factor.

Message 5 of 20
Anonymous
Not applicable

Re: When to close my sub prime credit cards?

I just recently go my credit score and immediately called and canceled a couple of cards I did not use. One was a Dillard's American Express card. I got the offer forgot to say I did not want it and then when it came cancelled. This move dropped my credit score by 11 pts. I have a Capital one card with a annual fee and I might try the hints about asking to waive it. I also have a HSBC mastercard that has no annual fee and a low interest rate. I like it why are others not?
Message 6 of 20
Anonymous
Not applicable

Re: When to close my sub prime credit cards?

I was under the impression that closing accounts is a bad thing.  I have a couple of accounts I'd like to close (HSBC) but I thought closing them would hurt my score and history. 
 
 
Message 7 of 20
Anonymous
Not applicable

Re: When to close my sub prime credit cards?

I wonder the same thing. If you aren't doing a major purchase soon, then the drop in hx unless it is extremely older than your other cards shouldn't matter you will get them back. I think you also get hit if it throws off util and the fact you have a new inquiry and new account if you decide to close the s/p in trade for a prime card. You can do as brammy stated earlier and wait to see if they will waive the annual fee when you approach the anniversary date and get a extra year but then I know I have many s/p cards and we get hit with participation fees as well as on line fees for payments. It is horrible living in a s/p world.
 
As soon as I secure my mortgage I am turning them in for some prime cards!
Message 8 of 20
Anonymous
Not applicable

Re: When to close my sub prime credit cards?



LadyFICO wrote:
I wonder the same thing. If you aren't doing a major purchase soon, then the drop in hx unless it is extremely older than your other cards shouldn't matter you will get them back. I think you also get hit if it throws off util and the fact you have a new inquiry and new account if you decide to close the s/p in trade for a prime card. You can do as brammy stated earlier and wait to see if they will waive the annual fee when you approach the anniversary date and get a extra year but then I know I have many s/p cards and we get hit with participation fees as well as on line fees for payments. It is horrible living in a s/p world.
 
As soon as I secure my mortgage I am turning them in for some prime cards!


 
For cards with mothly participation fees I say run, do not walk, to the nearest exit.Smiley Very Happy

Message 9 of 20
Anonymous
Not applicable

Re: When to close my sub prime credit cards?



fizzgigg333 wrote:
 I also have a HSBC mastercard that has no annual fee and a low interest rate. I like it why are others not?

 
 
Most of the complaints you hear about HSBC are their subprime products.  This company is okay for prime products but they treat their subprime customers just that way, subprime.

Message 10 of 20
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.