topic Re: closing store cards in Credit Cards

closing store cards

jeffery581 — Thu, 15 Oct 2015 13:35:59 GMT

My fico has gone from 580 to 726 in 4 LONG years and a lot of hard work. Now I have a freedom, discover it, and quick silver cashback cards. Is there any negatives if I close some store cards? I have Low utilization so that is not an issue. I dont see any point in having a store card when I get cash back from other cards.

Re: closing store cards

takeshi74 — Thu, 15 Oct 2015 13:37:51 GMT

See the Closing Credit Cards thread linked in the Helpful Threads sticky. It also applies to store cards.

tl;dr is that the immediate impact is to revolving utilization.

Re: closing store cards

Anonymous — Thu, 15 Oct 2015 23:41:40 GMT

No, there are no negatives. they will remain on your report for the next 10 years and will be factored in your AAoA. So close them if you don't have any use for them.

Re: closing store cards

Kevin86475391 — Fri, 16 Oct 2015 01:28:35 GMT

I see from your signature you have a Target card. I'd keep that one personally. It's the only store card I have and I absolutely love it. If you shop at Target a lot (I do), it's hard to beat the 5% off you get every time you use it. I wouldn't open a card to get a single, one-time discount, but a recurring one like this is great IMO. It's unlikely you'll consistently get 5% off with your cash back cards. As a store card the APR is likely much higher than your other cards, so definitely don't carry a balance on it, but if you use it and pay it off (and again if you shop at Target a lot to begin with), I think it's a great card to have.

Re: closing store cards

pipeguy — Fri, 16 Oct 2015 01:56:24 GMT

I've closed a bunch of store cards I never used, but those that benefit ME, I tend to keep open for free FICO scores (Walmart) and no charge extended financing of larger purchases such as Amazon and Firestone, CareCredit, Lowes, Home Depot (Walmart too, but I tend to use my Sams MC more). Gas cards that are just gas cards if they offer strong benefits, I'll keep those, such as Wawa (25 cents off a gal for the first 2 months) and BJ's MasterCard (10 cents a gal off at the pump) - but I do tend to close cards that no longer get used. I have very few basic store cards, most are co-branded MC/V versions. Macy's and Brooks Brothers are both Citi backed, but I don't really use either very much.

Funny thing is, I've got over 30 active cards, in a few years I'm retiring from the DC rat race and going on the road for a year or two traveling everywhere before I buy a new home at the beach - at that time (retirement) I'll probably but my active accounts back to 4-6, but right now I have no idea which ones I'll keep because at least 12-14 of them I currently want/need. Note too that earlier this year I closed a bunch of cards I wasn't using - most were store cards, but there were a few bank cards in the mix. Closed Exxon, Shell, J. Crew, Eddie Bauer, Walmart MC, BoA Visa, Golfsmith, JCP and a couple more that I'm too lazy to go look up on my old spreadsheets.

I guess the bottom line is, it doesn't hurt to keep them open, bur neither does it hurt to close them as long as you keep your utility in check and don't need the padding.

Re: closing store cards

Anonymous — Fri, 16 Oct 2015 09:46:07 GMT

Only Walmart and Amazon would be worth keeping/having for me. Walmart for the free FICO and Amazon for 5% for Prime members (aka me!)

Re: closing store cards

Anonymous — Sat, 17 Oct 2015 20:28:10 GMT

I recently closed some store cards and a gas card. They weren't being used. I did keep my Target for the 5% off because I shop there often. I also kept my Lowes card because it has a decent credit line and it has the 5% off or 0% financing if needed.