topic Cancel secured? in Credit Cards

Cancel secured?

Anonymous — Wed, 09 Mar 2016 16:55:00 GMT

I have a secured card that I opened 9/2014 to help rebuild credit after a bankruptcy (filed 2010 & successfully discharged 2015).

I have now built my credit (middle fico8 score) from 621 to 683. Before the secured card I had zero debt. Now I have a mortgage, small credit union loan, and today I was approved for an unsecured card.

I HATE that I have $1000 just sitting around doing nothing. But I'm worried about the credit ding from canceling the card to get my money back.

I don't plan on trying to apply for any loans for another ~12 months when I plan to buy a car. At that point my credit union loan will be paid in full.

Should I cancel the card and take the ding now or wait until after I get the auto loan next year?

Re: Cancel secured?

Anonymous — Wed, 09 Mar 2016 17:09:35 GMT

You can, I did that in Jan, it was a capital one secured and I had 500 in it, since cap1 wont grad it I figured I'll just close it. No negative impact on my score YMMV.

It is good to have 3 cc's from my understanding to maximize credit, but it may not be worth the inquires for you to get them.

Re: Cancel secured?

jacetx — Wed, 09 Mar 2016 17:27:26 GMT

@Anonymous wrote:
I have a secured card that I opened 9/2014 to help rebuild credit after a bankruptcy (filed 2010 & successfully discharged 2015).

I have now built my credit (middle fico8 score) from 621 to 683. Before the secured card I had zero debt. Now I have a mortgage, small credit union loan, and today I was approved for an unsecured card.

I HATE that I have $1000 just sitting around doing nothing. But I'm worried about the credit ding from canceling the card to get my money back.

I don't plan on trying to apply for any loans for another ~12 months when I plan to buy a car. At that point my credit union loan will be paid in full.

Should I cancel the card and take the ding now or wait until after I get the auto loan next year?

Congrats on your rebuilding. As mentioned, 3 cards are best for optimal FICO score. The only way that closing a card has negative effect is when it affects utilization, closed cards stay on your credit for 10 years. You can read this great post: http://ficoforums.myfico.com/t5/Credit-Cards/Closing-Credit-Cards/m-p/347190

Re: Cancel secured?

Anonymous — Wed, 09 Mar 2016 19:03:28 GMT

I recently closed 2 secured cards because i wanted my money back and i was elgible for better cards.

Like stated above, 3 cards is optimal for best SCORE. if score is not a factory right now and ALSO having a stashed away savings in a card doesn't matter i would cancel. i cancelled just to get back $200 lol. My score is below mid 650s but i have my sub prime cards and i know the score hit of cancellation doesn't matter enough because i need higher scores to get GREAT CARDS.