Close First Premier?

[bearclaw84]

So I have 2, yes 2, First Premier Un-secured cards. I know they are terrible and I should have just gotten a secured card instead but they approved me at a time when no one else would. So my question now is, I am getting closer to being in prime territory my TU score is 672 from Wal mart card, and my EQ from Myfico is 631, EX FAKO is 689, should I just pay off and close these cards and start applying for some prime cards? I have one very large collection due to fall off in Jan. and am trying to get away from these 2 sub cards, they are however my oldest open accounts. My biggest reason is I have heard that if you have these on your report that some prime issuers will deny your application just because you have a frst premier card? I would really like to try for the Discover More soon, any ideas?????

[Jutz]

1. How many total revolving lines of credit do you currently have opening, and how old are they
2. When are your AFs due to charge, and what are your monthly fees you're paying per card
3. When do you plan on next applying for a new card

[bearclaw84]

2 - First Premier from 2008 ish total balance of $300 between the two

Orchard Bank from 2009 $0 balance $400 limit

Kohls Charge From 2012 $0 balance $300 limit

Best Buy Reward Zone from 2011 - $350 balance $600 limit

Wal-Mart Card from 2011 with $300 balance $500 limit

I am also an AU on my moms Chase card opened in 2005 with $10k limit and $500 balance

The annual fee for both cards is around March or April I would have to double check, the monthly fee is like $6 per card or something small

I would like to apply in Jan. or Feb. for a prime card or something that isn't sub prime

[Jutz]

I def wouldn't keep them long enough for the AF to hit.  Why do you even have a balance on them?  Doesn't the interest on FP not have a grace period?  Pay the balance off without a doubt, and I'd probably ditch them.  It's not like they are usable cards.  Garden for a bit until you can get a good daily CC, like Freedom or something along those lines.

[RobertEG]

$6 a month, at least to my view, is significant.

If that amount is not a significant factor, I would not close them.

You wont lose the age of those cards should you close them.  Keeping them open extends the eventual 10yrs from closing when the CRA will zap them from your file.

To the degree that you feel a future creditor might frown on a showing of secured or sub-prime prior credit in your report, they will still be there after closing.  Thus, if that is a major concern, you need to get the entire account deleted, thus losing their age in your AAoA calc, and if one is your oldest account, a reduction in your total lenght of credit.

In my opinion, its primarily about whether you wish to avoid the annual fees.

[chasmith]

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@bearclaw84 wrote:

2 - First Premier from 2008 ish total balance of $300 between the two

The annual fee for both cards is around March or April I would have to double check, the monthly fee is like $6 per card or something small

I would like to apply in Jan. or Feb. for a prime card or something that isn't sub prime

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That's $144.00 a year for the two cards.  I did what you did, opened First Premier and CreditOne Bank cards with high fees and low limits, they served me to a point but I've closed them now.

[battles11]

I closed my first premier card about 3 months ago after having it for a couple years. People always say your credit will go down when you do that. Mine actually went up 15 points when I closed it.

[bearclaw84]

Being an AU on my mom's Chase card should help with my AAoA though correct? I hate the fact that they charge a fee every month but they gave me credit when nobody would and thats why I still have them. With my scores where they are what are my chances of applying for a prime cardand getting approved, and what would be the best prime card to try first? Or are my scores not high enough to think prime yet?

[scarrollprint]

I honestly never heard of anyone gettind denied BECAUSE of having FP on their reports.

Honestly that is just stupid to think that. Sure people might have gotten deined and had FP on their reports, but there may have been a different reason to cause the denial - util, aaoa, lates, something. And based on the fact that one needs FP in the first place usually means there was some sort of negative info on their reports at one time or another.

If you have cleaned up your reports since getting these cards then I don't see any reason to want to zap them off your reports. It adds age to your age with your newer accounts as well as shows that for the past couple years you were on time with no issues.

What I would do is pay off the balances to $0 on them. Keep it that way and then just before the AF is due, kill them. They have served their purpose. You got a couple years of age off of them and if you can't get a prime card right away, its not like having them would help you get any closer. Closing them won't put you any further away from a prime card either.

Welcome them to your report, but don't welcome them to your wallet anymore. Heck get a cap 1 card in its place! They have one with a high interest rate, but a $19 AF which if you don't carry a balance won't be an issue. I wouldn't app for a cap 1 card though until after you app for a prime card just because you don't want to get approved and drop your age - every month helps when looking at prime land.

[Jutz]

If you apply for a card that only pulls TU you may have a shot at a decent card, if they pull EQ though you're probably sunk.  EX is a mystery as always