topic Re: Close / Don't use CC in Credit Cards

Close / Don't use CC

corymcd88 — Tue, 06 Dec 2016 06:08:59 GMT

I'm looking at not using or closing some credit cards.

Walmart - Don't use; only if I need 0% Offer.

JCP - Don't use; Only use if I need it for a discount.

Discover - Don't use; I don't like to rotation categories each quarters.

Capital one - Don't use; High APR and low CL same as USAA card.

Citi Simplicity - Don't use; Poor rewards if you can call it that.

That is about it.

Re: Close / Don't use CC

Anonymous — Tue, 06 Dec 2016 06:30:37 GMT

@corymcd88 wrote:
I'm looking at not using or closing some credit cards.

Walmart - Don't use; only if I need 0% Offer.
JCP - Don't use; Only use if I need it for a discount.
Discover - Don't use; I don't like to rotation categories each quarters.
Capital one - Don't use; High APR and low CL same as USAA card.
Citi Simplicity - Don't use; Poor rewards if you can call it that.

That is about it.

Seems like the Discover card is a decent limit and might be good to keep for utilization purposes, it also has a chance to grow quite a bit more. Good card to keep in your back pocket.

Citi I would see if they would merge you limit with your double cash. I don't know if Citi does that or not but if they do that's what I would do.

Walmart also has a decent limit and could be a sock drawer queen but could possibly be closed. Is it the mastercard or just the store card?

JCP is also a decent limit but could be a casualty as well if you don't use it.

Capital One would be the first one I would dump on your list based off of its CL.

Good luck

Re: Close / Don't use CC

austinguy907 — Tue, 06 Dec 2016 06:47:42 GMT

Cory

The only real reason to CLOSE something is if it COSTS you something. I really don't get the rationale of closing out a good chunk of your available credit. I do know it's hard to keep up with a slew of accounts though between auto pays and manual pays and just the ordeal of rotating them. If you're closing things out I would start with store only cards that can't be used anywhere else. After that I'd put a bullseye on anything that charges an AF unless you use the perks at least a few times a year. After that it's open season if it just doesn't fit anymore and can't PC into something that does. Keeping things diversified though should be something to keep in mind as well between different lenders in case someone gets spooked from something in your profile changing for some reason. All it takes is one error being reported and the doors start slamming shut on these accounts even though the error isn't yours sometimes.

Re: Close / Don't use CC

Anonymous — Tue, 06 Dec 2016 08:40:44 GMT

@austinguy907 wrote:
Cory

The only real reason to CLOSE something is if it COSTS you something. I really don't get the rationale of closing out a good chunk of your available credit. I do know it's hard to keep up with a slew of accounts though between auto pays and manual pays and just the ordeal of rotating them. If you're closing things out I would start with store only cards that can't be used anywhere else. After that I'd put a bullseye on anything that charges an AF unless you use the perks at least a few times a year. After that it's open season if it just doesn't fit anymore and can't PC into something that does. Keeping things diversified though should be something to keep in mind as well between different lenders in case someone gets spooked from something in your profile changing for some reason. All it takes is one error being reported and the doors start slamming shut on these accounts even though the error isn't yours sometimes.

I disagree, there are plenty of reasons to close a card beyond it costing you something monetarily. Some may want to simplify their finances and not have to worry about a significant amount of credit accounts. By only having credit accounts that you use somewhat frequently you limit the potential for fraud to occur without your knowledge.

Re: Close / Don't use CC

Anonymous — Tue, 06 Dec 2016 17:47:36 GMT

@Anonymous wrote:
@austinguy907 wrote:
Cory

The only real reason to CLOSE something is if it COSTS you something. I really don't get the rationale of closing out a good chunk of your available credit. I do know it's hard to keep up with a slew of accounts though between auto pays and manual pays and just the ordeal of rotating them. If you're closing things out I would start with store only cards that can't be used anywhere else. After that I'd put a bullseye on anything that charges an AF unless you use the perks at least a few times a year. After that it's open season if it just doesn't fit anymore and can't PC into something that does. Keeping things diversified though should be something to keep in mind as well between different lenders in case someone gets spooked from something in your profile changing for some reason. All it takes is one error being reported and the doors start slamming shut on these accounts even though the error isn't yours sometimes.
I disagree, there are plenty of reasons to close a card beyond it costing you something monetarily. Some may want to simplify their finances and not have to worry about a significant amount of credit accounts. By only having credit accounts that you use somewhat frequently you limit the potential for fraud to occur without your knowledge.

This! In addition, in order to keep cards open, people sometimes add unnecessary spend every few months or, for things like needed subscriptions, forgo rewards they could have got putting it on better cards.

Some responses worried about utilization. IMO, this is way overstated in myfico. Apart from the fact that OP clearly has a lot of credit, even after the proposed closures, once you have a reasonable amount, utilization padding just isn't that important. If you can PIF, you can, at the times you actually need it, make your reported util whatever you like (and just PIF on due date when score doesn't matter)

Re: Close / Don't use CC

driftless — Tue, 06 Dec 2016 17:25:09 GMT

+ 1 to both tydawg and longtimelurker's comments.

Re: Close / Don't use CC

Anonymous — Tue, 06 Dec 2016 17:26:51 GMT

@Anonymous wrote:
@austinguy907 wrote:
Cory

The only real reason to CLOSE something is if it COSTS you something. I really don't get the rationale of closing out a good chunk of your available credit. I do know it's hard to keep up with a slew of accounts though between auto pays and manual pays and just the ordeal of rotating them. If you're closing things out I would start with store only cards that can't be used anywhere else. After that I'd put a bullseye on anything that charges an AF unless you use the perks at least a few times a year. After that it's open season if it just doesn't fit anymore and can't PC into something that does. Keeping things diversified though should be something to keep in mind as well between different lenders in case someone gets spooked from something in your profile changing for some reason. All it takes is one error being reported and the doors start slamming shut on these accounts even though the error isn't yours sometimes.
I disagree, there are plenty of reasons to close a card beyond it costing you something monetarily. Some may want to simplify their finances and not have to worry about a significant amount of credit accounts. By only having credit accounts that you use somewhat frequently you limit the potential for fraud to occur without your knowledge.

+infinity

This entire thought process is why I closed an account this week with Amex.

Re: Close / Don't use CC

Anonymous — Tue, 06 Dec 2016 18:05:59 GMT

I just wish there was something I could do with my care credit as I called awhile back and explained I won't need it as I thought but it does help my utilization at the moment I guess but they said just leave it open also if I closed it would that put me under that so many cards at one time rule

Re: Close / Don't use CC

Anonymous — Tue, 06 Dec 2016 18:49:41 GMT

@Anonymous wrote:
I just wish there was something I could do with my care credit as I called awhile back and explained I won't need it as I thought but it does help my utilization at the moment I guess but they said just leave it open also if I closed it would that put me under that so many cards at one time rule

What rule are you speaking of? Also they will likely upgrade your account to a MasterCard soon.

Re: Close / Don't use CC

corymcd88 — Tue, 06 Dec 2016 18:53:33 GMT

@Anonymous wrote:
@Anonymous wrote:
I just wish there was something I could do with my care credit as I called awhile back and explained I won't need it as I thought but it does help my utilization at the moment I guess but they said just leave it open also if I closed it would that put me under that so many cards at one time rule
What rule are you speaking of? Also they will likely upgrade your account to a MasterCard soon.

Only selected will upgrade to carecredit MC a rep told me, like Walmart and JCP.

Re: Close / Don't use CC

Anonymous — Tue, 06 Dec 2016 19:20:59 GMT

Exactly and no real rule but like the 5/24 rule as I'm at my max and wondered if I closed it would I be at 4/24

Re: Close / Don't use CC

Anonymous — Tue, 06 Dec 2016 20:39:35 GMT

@Anonymous wrote:
Exactly and no real rule but like the 5/24 rule as I'm at my max and wondered if I closed it would I be at 4/24

I was told they were upgrading most accounts. Also the rule does not work like that, even if you close an account it is still counted in the 5/24.

Re: Close / Don't use CC

Anonymous — Tue, 06 Dec 2016 23:46:24 GMT

OP, do you typically carry balances (and if so at what utilization percentages) or do you PIF on all of your accounts every month?

If you don't carry balances and/or only have very small balances, closing several accounts will have zero impact on your aggregate utilization with respect to FICO scoring so there's really no harm in closing the accounts that you don't use or have no intention of using again.

One question though, you said in your OP that you don't like the Discover rotating categories. Since there are so many rotating categories, I find it unlikely that you wouldn't find use for at least some of them... and at 5% CB in those categories it would be difficult for one of your other cards (I would think) to beat it. That said, I'd keep Discover open and simply use it any time you want to make a purchase in a current 5% CB category... even if that only happens to be a handful of times per year. Just my opinion here.

Re: Close / Don't use CC

Anonymous — Wed, 07 Dec 2016 00:12:23 GMT

@Anonymous wrote:
.

One question though, you said in your OP that you don't like the Discover rotating categories. Since there are so many rotating categories, I find it unlikely that you wouldn't find use for at least some of them... and at 5% CB in those categories it would be difficult for one of your other cards (I would think) to beat it. That said, I'd keep Discover open and simply use it any time you want to make a purchase in a current 5% CB category... even if that only happens to be a handful of times per year. Just my opinion here.

I took OPs comment to mean that like the whole concept of rotating categories, rather than not liking the individual ones recently. Some people just don't want the overhead of having to think "If it's 2Q this year, then....." for a max of $45 a quarter over a 2% card (after the first year!)

Re: Close / Don't use CC

Anonymous — Wed, 07 Dec 2016 00:38:10 GMT

I get that. I guess I don't find it to be that much of a headache. Quarterly isn't that bad. Not like we're talking weekly/monthly or something that's too difficult to follow. If it's a nuisance for him to follow, though, and results in him not using the card at all then I can understand closing it. I do think it makes financial sense, however, to keep it open in the event of a possible spend (maybe large) in one of the rotating categories as it could yield some decent CB.

Re: Close / Don't use CC

mdd0214 — Wed, 07 Dec 2016 03:11:31 GMT

I close any accounts I don't think I need for the forseeable future. If you close those accounts, you'll see some fluctuation in scores, but it should open up more options if new cards attract your interest in a few months/years.

Re: Close / Don't use CC

Anonymous — Wed, 07 Dec 2016 04:14:59 GMT

I would keep the walmart card for the rainy days. It's actually one of my favorite cards....

Re: Close / Don't use CC

bs1234 — Wed, 07 Dec 2016 05:02:19 GMT

Re: Close / Don't use CC

Anonymous — Wed, 07 Dec 2016 07:09:26 GMT

I think I read someone got Discover to change from the rotating category card to the It Chrome. Might be worth a try with the limit you have.

JCP has some kick a@@ deals for card members. Plus they are turning into an Amazon as far as CL goes. Went from $200 to $1700 to $500 in my first year. Not much of a
Score change either. I use my JCP card online because they have so much more there than in stores... appliances, electronics, furniture..... may want to keep this one and a bonus would be if they upgrade you to the MC.

The others I don't have much of any suggestions on. I do agree that closing is not a bad thing to do if you really never use it and just don't need it. I think everyone has their own reasons and methods on CC's... so what works for one doesn't for another. I just closed a couple store cards. I never used them. It was more of a PITA to make sure I did once a year because I didn't want a "Closed my credit grantor" on my reports for manual review purposes. Plus the only thing that really is effected by a closed card is utilization. AAoA is the same Closed or open as far as FICO goes.

GL with your decision. No bad answer in my opinion. Do what works for you.