11-26-2012 08:39 AM
Hi!, this is my first post and I'm very new to this (this may be a little long). I have been working very hard on rebuilding my credit. October 2010, my credit was ~570, so I got one of those Capitol One secured cards. Threw down like $400 and just used it when I needed it. After using awhile ( I don't recall how long) they threw me a bone and gave me $100 in credit on that card. My limit is now up to $500. Last year around this time I applied for a Discover card (I was pre-approved and took the letter hook-line-sinker.) I was denied the Discover but approved for HSBC Discover Rewards ($400 limit, ok fine). I checked my credit score this month and I'm at 730 (EQ). I applied for an Amazon Chase Visa because Amazon is my drug and the points wouldbe welcome, and an Amex green charge card. I was approved for both (Amazon has a limit of 400 and they said my credit score was 630 **bleep**, amex is a no limit charge). Now to get to my question, I would LOVE to cancel that HSBC card and the Capitol One card (to get back my $400 in deposit and get rid of that horrible "Discover" card). Is this a smart decision? I'm not sure how Amex reports with their charge card, but it seems that if I cancel those 2 cards, the 900 in revolving credit would disappear and all I would have left reporting would be the Amazon Visa (400) and however Amex reports. Plus I'm sure my credit score would take a nice hit. I am content with having the Amazon and Amex cards, but eventually I want to up the limit for the Amazon card and get revolving credit thru Amex with one of their Blue cards. Any suggestions would be amazing, thanks!
11-26-2012 10:36 AM
Check out the Closing Credit Cards thread found stickied within CCs. Per FICO, any hit would be limited. Your mix will be remained unchanged. Once you pay off the other two CCs and close them, then they'll forever be removed from utilization. If you are carrying any sort of balance on the Amazon, then you can see a hit. The Amex won't factor into util, or at least by lenders using the newer FICO versions. If I had that, I'd keep the HSBC Discover open up to the point where they hit you with the AF and then close it. I had that and closed it after the fee and they refunded the $$$, though I'm not sure how it is with CapOne now. Does your CapOne secured have a fee? If not, I'd keep it open for a while longer, or at least until you can replace it.
11-26-2012 10:48 AM
I should be getting hit wit hthe AF soon on the HSBC. I think the Cap 1 card has an AF also. Just curious why its best to wait until after I'm hit with the AF to close? Sorry! oh and thanks!
11-26-2012 10:51 AM - edited 11-26-2012 10:53 AM
You can do it before. Just IME, they refunded the AF (and without asking for it). I saw the fee and figured the ship has sailed on these and called and cancelled.
You always want to be in a mindset to replace a closed card with a new CC. If you close the two now, it'll be very difficult to manage just one per util (Amex won't count). Plus future creditors might deny based on a lack of open revolving credit (you'd have just the one). ETA...I'm also assuming that Amazon and Amex are new so you wouldn't want to add any new CCs just yet.