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To close or not to close?

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SLR72689
Frequent Contributor

To close or not to close?

I have a couple cards I opened that I no longer use... I don't know if it's better to let it sit there and age and not use it or just close them. 

 

Merrick Bank $1000 limit with 34% APR * was a card I got when I first started rebuilding - opened in July 2013. No rewards/points. 

Capital One SQ $500 limit with 21% APR - I've had this card since 2009 but they won't budge on the limit. Was formerly an Orchard Bank card... maybe thats why? They upped my first Capital One card from $300 to $3250. There are a couple 30 day lates on it from 2011. 

 

I also have a Amex Charge Green card which I rarely use. 

 

Here are my other cards and balances/limits:

Capital One SQ $900/$3250

Discover $400/$1500

Orbitz Rewards $0/$1500

Walmart Store $0/$1750

VS Store $0/$1450

Amazon Store $0/$1450

Best Buy $0/$1305 *rarely use this one, but it's my oldest card (opened 2007) with no lates. 

 

I'm also still paying on a large charge off (Balance is roughly $2400/$4900. Was originally at $5700/$4900).  Maybe it's best to wait until my charge off is paid to close so it doesn't hurt my UTL more? After every payment posts from my charge off, my score bumps up more and more.

 

Any suggestions would be wonderful and appreciated!

Message 1 of 10
9 REPLIES 9
Jerry45
Valued Contributor

Re: To close or not to close?

Is the Cap one with $500 Secured? Close Merrick and its 34% as quick as lightning. You have quality lines of Unsecured credit.

Message 2 of 10
gdale6
Moderator Emeritus

Re: To close or not to close?


@SLR72689 wrote:

I have a couple cards I opened that I no longer use... I don't know if it's better to let it sit there and age and not use it or just close them. 

 

Merrick Bank $1000 limit with 34% APR * was a card I got when I first started rebuilding - opened in July 2013. No rewards/points. 

Capital One SQ $500 limit with 21% APR - I've had this card since 2009 but they won't budge on the limit. Was formerly an Orchard Bank card... maybe thats why? They upped my first Capital One card from $300 to $3250. There are a couple 30 day lates on it from 2011. 

 

I also have a Amex Charge Green card which I rarely use. 

 

Here are my other cards and balances/limits:

Capital One SQ $900/$3250

Discover $400/$1500

Orbitz Rewards $0/$1500

Walmart Store $0/$1750

VS Store $0/$1450

Amazon Store $0/$1450

Best Buy $0/$1305 *rarely use this one, but it's my oldest card (opened 2007) with no lates. 

 

I'm also still paying on a large charge off (Balance is roughly $2400/$4900. Was originally at $5700/$4900).  Maybe it's best to wait until my charge off is paid to close so it doesn't hurt my UTL more? After every payment posts from my charge off, my score bumps up more and more.

 

Any suggestions would be wonderful and appreciated!


I concur you should wait till your CO is paid off and your utilization on open cards is brought down, what you want is 1 card reporting no more than 9% of its CL all others at 0, this is if you are trying to get a max Fico score. If you are not after that its still advised to not let too many cards report a balance. As far as what to close if there are no AFs involved and you dont want the card anymore I would just SD it and let them eventually close it out for non use. Your AAoA wont immediately be  affected as closed good accounts remain for up to 10 years post close.

Message 3 of 10
SLR72689
Frequent Contributor

Re: To close or not to close?


@Jerry45 wrote:

Is the Cap one with $500 Secured? Close Merrick and its 34% as quick as lightning. You have quality lines of Unsecured credit.


No, none of my cards are secured.

Message 4 of 10
Anonymous
Not applicable

Re: To close or not to close?

Regarding the Cap One card that they won't raise the limit on - do you use it a lot? That seems to be key with Cap One, they want to see a lot of usage with no balance carried over - particularly with the reward cards.

Message 5 of 10
SLR72689
Frequent Contributor

Re: To close or not to close?


@Anonymous wrote:

Regarding the Cap One card that they won't raise the limit on - do you use it a lot? That seems to be key with Cap One, they want to see a lot of usage with no balance carried over - particularly with the reward cards.


I don't use it too often because the limit is so low.

Message 6 of 10
Anonymous
Not applicable

Re: To close or not to close?

I would suggest using it for something like your weekly grocery shopping - enough that its going to see good usage, but not hit the limit. Then pay it down the following week after the charges post. Do that for three months then request an increase and see what happens.

Message 7 of 10
Anonymous
Not applicable

Re: To close or not to close?


@Anonymous wrote:

I would suggest using it for something like your weekly grocery shopping - enough that its going to see good usage, but not hit the limit. Then pay it down the following week after the charges post. Do that for three months then request an increase and see what happens.


FWIW, when they deny you a CLI, you will get a pfd in your statements link on the account summary page. Go to the statements link for that account and select the documents tab, and it should be there within a couple days of your request.

Message 8 of 10
SLR72689
Frequent Contributor

Re: To close or not to close?


@Anonymous wrote:

@Anonymous wrote:

I would suggest using it for something like your weekly grocery shopping - enough that its going to see good usage, but not hit the limit. Then pay it down the following week after the charges post. Do that for three months then request an increase and see what happens.


FWIW, when they deny you a CLI, you will get a pfd in your statements link on the account summary page. Go to the statements link for that account and select the documents tab, and it should be there within a couple days of your request.



I just did that (thanks, I didn't know that!) and here's what it said:

 

A credit limit increase is currently not available upon request because Capital One is evaluating account activity at assigned credit limits.

Message 9 of 10
Anonymous
Not applicable

Re: To close or not to close?


@SLR72689 wrote:

@Anonymous wrote:

@Anonymous wrote:

I would suggest using it for something like your weekly grocery shopping - enough that its going to see good usage, but not hit the limit. Then pay it down the following week after the charges post. Do that for three months then request an increase and see what happens.


FWIW, when they deny you a CLI, you will get a pfd in your statements link on the account summary page. Go to the statements link for that account and select the documents tab, and it should be there within a couple days of your request.



I just did that (thanks, I didn't know that!) and here's what it said:

 

A credit limit increase is currently not available upon request because Capital One is evaluating account activity at assigned credit limits.


There ya go! They aren't doing it because the usage is low. Do like I said, charge it up with weekly groceries for a couple three months and then see what happens.

Message 10 of 10
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