Have 6 credit cards need to close some, advice needed

[Anonymous]

Hi,

So I have 6 low limit credit cards that I recently paid off the entire balance on each of the cards.

1. capital one (opened April 2005) old balance: $200, new balance: $0, credit limit: $200

2. capital one (opened Aug 2011) old balance: $500, new balance: $0, credit limit $500

3. capital one old balance (opened Dec 2005): $500, new balance: $40, credit limit $500

4. first premier bank (opened Aug 2009) old balance: $300, new balance: $0, credit limit $300

5. credit one bank old balance (opened July 2011): $400, new balance: $0, credit limit $400

6. bank of america (opened April 2012)old balance $500, new balance: $0, credit limit $500

They all have high APRs and various annual fees etc. except the BOFA card is decent.  I'd like to close some of these accounts especially the credit one and first premier bank cards.  

What are your reccomendations?  Which ones do I close and do I do it right now?  I just paid them all off a few days ago so hoping for a credit score jump.  My current scores are 615, 620, 619.

My overall utilization is still going to be over 50% because I have $3000 line of credit account through a credit union that still has a balance of $3k.  Planning on paying that all off next month.

[Anonymous]

I would close Credit One immediately if it does the $8.75 monthly charge.

If the FP has similar monthly fees close it immediately as well. Otherwise wait until just before their annual fee time comes up.

You need to 'work' those capital one cards to get CLI's. Use them for everyday expenses and then pay them down immediately as the charges post. I run $1500-$2000 of my monthly expenses through mine, and they tripled my limits within 3 months of doing that. I went from  300/500 limits to 800/1500 limits. After they raise your limits you can call and ask them to upgrade them to Quicksilver Reward cards for the cash back. I've already generated over $30 in cashback rewards just this past month.

The biggest impediment to getting higher limits when building/rebuilding is people simply not using their cards. People keep passing around the nutty idea that the best way to use a credit card is to charge a pack of gum on it every three months - BIGGEST CREDIT CARD MYTH. The fact is that they issued you that line of credit so you would use it, so THEY can make money. Their preferred method for you to do that is by minimizing their risk exposure. The way you do that is to use it in place of cash or debit cards for everyday monthly expenses, and pay the charges down quickly. That generates a ton of vendor fees for the card issuer, with little risk, since you are paying it down immediately.

[Anonymous]

Thanks Norman that was helpful.  I also read on these boards that I should have no more than 3 revolving lines of credit.  I currently have 7 (6 credit cards and 1 line of credit from bank).  Do I need to get down to 3 total?  

My plan is to close the Credit One and FPB immediately.  That would leave me with 4 cards.  I would probably close one of the capital one cards or the BOFA card if I have to close another one.  Or I could just stick with those 4 for now along with the line of credit.

[Anonymous]

No, its three accounts MINIMUM, not maximum. You just want to close out the cards that have annual fees, as you improve and get approved for the no fee cards.

[gdale6]

I agree with Norman on the FP & Credit 1. You have 10 year old Cap-1s there I would contact the EO on those and ask that the annual fee be waived permanently and the limits be raised. I would do it after you get that 3K line paid down.

Let me Google that for you, the one you want is at the top of the list  http://bit.ly/1g0P1zO