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When to close secured cc?

Regular Contributor

When to close secured cc?

Is it ok to close two secure cc? I got them in January and I wanted to close them before I get annual fee, is it worth it? I just recently got approved for a unsecured cc w/$500 limit, if that matters?

Myfico on 02/21/12
Trans: 538 EQ: 591 Ex???
Myfico on 10/09/12
Trans: 600 EQ 602 EX???
Lender Pull 04/15/13
Trans 680, EQ 644, Ex 608
"I'm not telling you it is going to be easy, I'm telling you it's going to be worth it"
Message 1 of 6
5 REPLIES
Established Contributor

Re: When to close secured cc?

The question is, what is your current overall revolving credit situation? Do you only have those 2 cards and now this unsecured card? If so, I would keep these open until you can open 2 more unsecured revolving forms of credit. Chances are good the fee is worth getting the most out of your credit score, but it depends how much they are. If you're not paying interest on these cards and the fees are below $40 a year, I would just keep them, they can only help you. Your utility could also be affected by closing these cards, take that into consideration as well.



Starting Score: EQ: 383 2/2011
Current Score: TU: 644 EQ: 648 EX: 6?? 2/2015
Goal Score: 700


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Message 2 of 6
Valued Member

Re: When to close secured cc?

Right, it depends on your utliziation ratio. Make sure that IF you close that unsecured account, that your utilization ratio wont skyrocket. Also, if one of them is your oldest credit card, keep that open since the longevity of your credit cards plays a role in your credit score.


Starting Score: 597
Current Score: 659
Goal Score: 710

Take the myFICO Fitness Challenge
My Current Cards: Capital One Cash Rewards - $5000, Chase Amazon Rewards - $1400
Message 3 of 6
Established Member

Re: When to close secured cc?

See if your bank will convert it to unsecured. 

Message 4 of 6
Moderator Emeritus

Re: When to close secured cc?

+1  Close them when you have them replaced.  One open revolving isn't really enough to hold strength for your CR.  You really need at least 3 to maximize your scores.  

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 5 of 6
Regular Contributor

Re: When to close secured cc?

Thank you all for your advice!

Myfico on 02/21/12
Trans: 538 EQ: 591 Ex???
Myfico on 10/09/12
Trans: 600 EQ 602 EX???
Lender Pull 04/15/13
Trans 680, EQ 644, Ex 608
"I'm not telling you it is going to be easy, I'm telling you it's going to be worth it"
Message 6 of 6