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Approved for real CC's, should I close my old ones?

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ScottL
New Contributor

Approved for real CC's, should I close my old ones?

I have been in process of rebuilding my credit now for a couple years.  My score's are now all 3 around 630-660 range (seem to be updating daily with balances being paid off, credit increases, etc). 

And I know alot of what was keeping my scores down has been high utilization because I only had a couple low limit cards and kept a balance.  I think I was around roughly 80% total revolving credit used and 1-2 cards were maxed out (all in all only about $2000 in credit debt though).

 

Recently I have applied for a couple new cards and was approved. I was just approved for a $4500 Southwest Airline Mile Reward card from Chase and did a balance transfer over from all my other smaller cards to consolidate and get some airline miles started. 

Then just today, I requested a credit limit increase in all my cards and they all approved to go up a little bit, my Capital One Quicksilver went up from $600 to $1600!!!  And I was approved for a $7000 limit credit card from Restoration Hardware a month or so ago (my favorite furniture store).

 

So things are looking up, I am being approved for cards I never would have before.  (also bought a new truck 2 months ago and was approved through Ford credit with the 3.5% rate).  My credit scores have not been updated yet with all my new credit lines and consolidation and utilization percentage.  I am guessing once everything reports, and my utilzation drops, credit lines increase  I should be in the 650-660 range.

 

My question is, since I do not plan to use most of these and only opened in beginning to get me going... should I consider actually closing them? Or just leave them alone and keep them?  I like the idea of having them, but I want to do whats best for my score and credit going forward to continue being able to get bigger and better cards and loans/rates in the future.

 

Chase Southwest - $4500 limit ($2000 balance)

Restoration Hardware - $7000 limit ($500 balance)

Cap One QuickSilver - $1600 limit ($0 balance)

Cap One Platinum - $750 limit ($0 balance)

Credit One - $800 limit ($0 balance)

J Crew - $650 limit ($0 balance)

Express - $700 limit ($0 balance)

Overstock - $700 limit ($0 balance)

Starting Score: 498 (Jan 2013)
Current FICO 8: 687 EQ, 683 TU, 700 EX
Goal Score: 680
3 REPLIES 3
Anonymous
Not applicable

Re: Approved for real CC's, should I close my old ones?

If the old cards help your AAoA and do not have annual fees, then you should probably keep them.

Message 2 of 4
Anonymous
Not applicable

Re: Approved for real CC's, should I close my old ones?


@ScottL wrote:

I have been in process of rebuilding my credit now for a couple years.  My score's are now all 3 around 630-660 range (seem to be updating daily with balances being paid off, credit increases, etc). 

And I know alot of what was keeping my scores down has been high utilization because I only had a couple low limit cards and kept a balance.  I think I was around roughly 80% total revolving credit used and 1-2 cards were maxed out (all in all only about $2000 in credit debt though).

 

Recently I have applied for a couple new cards and was approved. I was just approved for a $4500 Southwest Airline Mile Reward card from Chase and did a balance transfer over from all my other smaller cards to consolidate and get some airline miles started. 

Then just today, I requested a credit limit increase in all my cards and they all approved to go up a little bit, my Capital One Quicksilver went up from $600 to $1600!!!  And I was approved for a $7000 limit credit card from Restoration Hardware a month or so ago (my favorite furniture store).

 

So things are looking up, I am being approved for cards I never would have before.  (also bought a new truck 2 months ago and was approved through Ford credit with the 3.5% rate).  My credit scores have not been updated yet with all my new credit lines and consolidation and utilization percentage.  I am guessing once everything reports, and my utilzation drops, credit lines increase  I should be in the 650-660 range.

 

My question is, since I do not plan to use most of these and only opened in beginning to get me going... should I consider actually closing them? Or just leave them alone and keep them?  I like the idea of having them, but I want to do whats best for my score and credit going forward to continue being able to get bigger and better cards and loans/rates in the future.

 

Chase Southwest - $4500 limit ($2000 balance)

Restoration Hardware - $7000 limit ($500 balance)

Cap One QuickSilver - $1600 limit ($0 balance)

Cap One Platinum - $750 limit ($0 balance)

Credit One - $800 limit ($0 balance)

J Crew - $650 limit ($0 balance)

Express - $700 limit ($0 balance)

Overstock - $700 limit ($0 balance)


I would recommend closing the Credit One CC for sure since its a rebuilder CC and also a predatory company.

 

Out of the last three CCs that are store cards, maybe rank them for yourself by usefulness value, such as would I shop there.

 

Then close the one with the lowest value to you.

 

Keep in mind that if an account is in good standing when you close it, it will remain on your reports for AAoA for ten years after closing.  You will lose the UTI value though.

 

If you were to close the Credit One and the J Crew (smallest UTI) that would be 1350 lost in UTI, but all at zero balance.  You have that easily covered by Restoration Hardware, so I dont see a problem.

 

After a couple months when the dust settles (scores stabilize) , you might close the next lowest rank store card.

 

I like to make non emergency changes slowly and observe the results on my score instead of making big chops at it.

 

HTH

 

 

 

Message 3 of 4
Anonymous
Not applicable

Re: Approved for real CC's, should I close my old ones?


@ScottL wrote:

I have been in process of rebuilding my credit now for a couple years.  My score's are now all 3 around 630-660 range (seem to be updating daily with balances being paid off, credit increases, etc). 

And I know alot of what was keeping my scores down has been high utilization because I only had a couple low limit cards and kept a balance.  I think I was around roughly 80% total revolving credit used and 1-2 cards were maxed out (all in all only about $2000 in credit debt though).

 

Recently I have applied for a couple new cards and was approved. I was just approved for a $4500 Southwest Airline Mile Reward card from Chase and did a balance transfer over from all my other smaller cards to consolidate and get some airline miles started. 

Then just today, I requested a credit limit increase in all my cards and they all approved to go up a little bit, my Capital One Quicksilver went up from $600 to $1600!!!  And I was approved for a $7000 limit credit card from Restoration Hardware a month or so ago (my favorite furniture store).

 

So things are looking up, I am being approved for cards I never would have before.  (also bought a new truck 2 months ago and was approved through Ford credit with the 3.5% rate).  My credit scores have not been updated yet with all my new credit lines and consolidation and utilization percentage.  I am guessing once everything reports, and my utilzation drops, credit lines increase  I should be in the 650-660 range.

 

My question is, since I do not plan to use most of these and only opened in beginning to get me going... should I consider actually closing them? Or just leave them alone and keep them?  I like the idea of having them, but I want to do whats best for my score and credit going forward to continue being able to get bigger and better cards and loans/rates in the future.

 

Chase Southwest - $4500 limit ($2000 balance)

Restoration Hardware - $7000 limit ($500 balance)

Cap One QuickSilver - $1600 limit ($0 balance)

Cap One Platinum - $750 limit ($0 balance) I would go on live chat and see what offers are available for you. I think you could ask for CLI's on both the Cap1 CC's and then ask to combine the Plat into the QS. I believe you would want to get that sub-prime Plat off (not that it affects your score). If you get CLI's they would help offset any loss in available credit you have through closing other accts.

Credit One - $800 limit ($0 balance) Definately close this one. See ASBinJAX's reply with respect to you AAoA not being affected.

J Crew - $650 limit ($0 balance)

Express - $700 limit ($0 balance)

Overstock - $700 limit ($0 balance)


Hope this helps...

Message 4 of 4
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