Good evening all,
In my years of researching I know that CU's are an important part of the credit picture. I recently just joined a local CU. Since they use the same pull for 30 days, I decided to go ahead and have them run me for their Rewards card.
Here's credit picture currently. I recently paid off most of my outstanding debt. All I have left is $1100 on a $1500 limit Cap One card and about $1200 left on a $3500 Care Credit account. I was interested in doing a balance transfer on these, and since I have paid off all other debt, paying it down rather quickly. The underwriters approved me for $2.5k. I initially asked for $5k. Outside of my Care Credit, it would be my largest line since I am in the later stages of rebuilding. However, they are requiring that I close at least one of the two lines upon payoff.
I expressed my concern to the banker working with me. I know closing will not necessarily impact my AAoA, which is fairly strong at about 5 years, however it would directly impact my utilization until the remaining debt is paid off. Granted, I am gaining $2.5k in available credit, but I will be losing close to that amount depending on which one I close. I do not intend to use the Care Credit again, but who knows? I have two Cap One cards, and was hoping to consolidate them into one product with a larger line, if they will still allow that.
The thing is, I don't mind closing cards. I fully intended to close a few since they were paid off, namely my BBRZ Mc since I doubt it will grow, and my Hooter's card. The Hooter's has literally given me a $300 increase every 90 days for the last year 6 months or so, and now sits at a $1600 limit. However, it bills me a $4ish a month annual fee, and if they refused to wave I fully intended to close it. I definitely want to move towards more prime offerings.
Is this a normal practice? When I questioned it, the banker basically said 'The underwriters are requiring it in order to reduce your available credit since we are adding a new line. Also, having access to excess credit can actually negatively impact your scores, so this is a good thing'. As much as I have been reading, I know this is not true. I would rather close the cards of my choice, not what's dictated. If they force the issue, which one would impact me the least to close? Is it worth it to get in with a CU that has a great reputation in my area? Any thoughts or ideas would be appreciated. Thanks!
