Re: Approved for BCE!!! Now What??[ Edited ]
01-28-2013 09:33 AM - edited 01-28-2013 09:34 AM
There are two views seen here. By far the most common is "Never close any card that doesn't have an AF" (and the more extreme faction don't exclude AF either!).
The idea here is that keeping them open adds to your overall CL, which is good for Utilization, and keeps up the AAoA for ever whereas often closed accounts will fall off in ten years or so. In other words, this lets you squeeze the maximum out of your Fico score.
I think after a while this doesn't make as much sense. If you have high CL and low utilization, and a long history, that extra $500 limit from a card doesn't really do anything. For me, it then makes sense to close stuff you aren't using, just to get the junk out of your life, and reduce possible fraud and a lender imposing an AF.
But you might still be nearer the first case, where you are building high CLs with quality cards. In that case, unless it is too much hassle, probably worth keeping.
The anecdotal evidence where people have been told they have too much credit (when applying for mortgages) is usually the total credit line, and nothing to do with the total number of cards. Again it's unlikely that a $500 store card is going to worry them as much as having outstanding available credit of three times household income (and that's often OK as well!)