topic Re: Closing and CLD Spree in Credit Cards

Closing and CLD Spree

ilovelisa — Sun, 29 Jan 2017 06:39:47 GMT

This is the opposite of what most MyFicoers want. However, I have reached a point where I believe I have too many cards and too much available credit. I do not have many major purchases to put on cards. I have found that my daily spending is drastically increased when I am paying by credit card. I have now opted to open a second checking account with a portion of my pay to be deposited in it to act as a budgeting tool. I am a lot more concious of my spending when I have an "allowance." I been doing this for 3 weeks now and have noticed my savings account increase quite a bit.

Tonight I closed my Freedom card with a $15K limit.

PenFed is getting the ax tomorrow when they open. That will be another $9.5K gone.

I called and reduced several limits too:

Bank of America from 25k to 10k

American Express from 18k to 10k

Discover from 17.2k to 10k

I will be keeping my Amex, BoA Mastercard, Discover, and local CU Visa. That way, I have one card from each major network. I will also keep my ICBC UnionPay card since it is too unique to go without.

I will go from $96.2K in avaliable credit to $41.5k. Still more than enough.

Re: Closing and CLD Spree

Anonymous — Sun, 29 Jan 2017 06:44:16 GMT

Whatever works! Saving money is always more important than scores and limits. You seem to be in a position where your credit limits are great so I assume your scores are great. The only time you really need to worry about your scores is when you are hashing out loan terms. If your decision leads to less stress then high fives are in order for sure!

Re: Closing and CLD Spree

ilovelisa — Sun, 29 Jan 2017 06:53:23 GMT

@Anonymous wrote:
Whatever works! Saving money is always more important than scores and limits. You seem to be in a position where your credit limits are great so I assume your scores are great. The only time you really need to worry about your scores is when you are hashing out loan terms. If your decision leads to less stress then high fives are in order for sure!

My TU and EX are just over 800. My EQ is 780. I plan on financing a car soon and don't want the possibility of hearing "too much available credit" or it to somehow negatively affect the loan.

Re: Closing and CLD Spree

NRB525 — Sun, 29 Jan 2017 07:10:12 GMT

Credit limits are dynamic, it's best when credit choices are consciously made.

So if you aren't comfortable with the credit and cards you have on hand, think it is more than you want to manage, then your choice to reduce is good.

Re: Closing and CLD Spree

ilovelisa — Sun, 29 Jan 2017 07:17:38 GMT

Management was another part of the decision. Going from 7 to 5 will help some. When I first found this site, I was one of those constantly apping for everything and mostly being denied for too new of a history and too many inquiries. Then the approvals started coming in. At the most I had 22 cards open at once. I have 46 accounts reporting as closed since 2011. I no longer have the time, desire, or energy to deal with so many credit accounts.

Re: Closing and CLD Spree

Gmood1 — Sun, 29 Jan 2017 07:21:34 GMT

@ilovelisa wrote:
@Anonymous wrote:
Whatever works! Saving money is always more important than scores and limits. You seem to be in a position where your credit limits are great so I assume your scores are great. The only time you really need to worry about your scores is when you are hashing out loan terms. If your decision leads to less stress then high fives are in order for sure!
My TU and EX are just over 800. My EQ is 780. I plan on financing a car soon and don't want the possibility of hearing "too much available credit" or it to somehow negatively affect the loan.

Do what you must to feel at ease. FWIW, your available credit has zero impact on auto loans. As long as you don't look like you're over your head in CC debt..they don't give a hoot. Penfed is a great CU to have in your corner on those types of loans. I financed two vehicles with them last year. With TCLs several times of yours, they didn't even bat an eye.

Live long and prosperous!

Re: Closing and CLD Spree

ilovelisa — Sun, 29 Jan 2017 07:25:29 GMT

That's great to hear that available credit doesn't affect the loan. I have heard many wonderful things about PenFed and auto loans. I will still be a deposit customer with a savings and CD. Hopefully that can win some points if I need them for an auto loan.

Re: Closing and CLD Spree

Gmood1 — Sun, 29 Jan 2017 07:33:32 GMT

@ilovelisa wrote:
That's great to hear that available credit doesn't affect the loan. I have heard many wonderful things about PenFed and auto loans. I will still be a deposit customer with a savings and CD. Hopefully that can win some points if I need them for an auto loan.

Yeah..don't sweat it.. you'll be fine. I have one card with them... started out with two. Closed the Amex and combined it to one. The Penfed Cash Rewards is my go to for unlimited 5% off gas. Thats all I use it for. They've been good too me. You'll be hard pressed to find a better auto loan rate. While everyone else has been bumping up their rates. Penfed's hasn't changed in over a year.

Re: Closing and CLD Spree

ilovelisa — Sun, 29 Jan 2017 07:36:35 GMT

@Gmood1 wrote:
@ilovelisa wrote:
That's great to hear that available credit doesn't affect the loan. I have heard many wonderful things about PenFed and auto loans. I will still be a deposit customer with a savings and CD. Hopefully that can win some points if I need them for an auto loan.
Yeah..don't sweat it.. you'll be fine. I have one card with them... started out with two. Closed the Amex and combined it to one. The Penfed Cash Rewards is my go to for unlimited 5% off gas. Thats all I use it for. They've been good too me. You'll be hard pressed to find a better auto loan rate. While everyone else has been bumping up their rates. Penfed's hasn't changed in over a year.

Mine started as the Travel Rewards Amex and I PC'd it to the Platinum Rewards Visa Sig. I'm a member at PenFed and DCU. Hopefully between those two I can get a good rate.

Re: Closing and CLD Spree

grillandwinemaster — Sun, 29 Jan 2017 12:56:52 GMT

Congratulations on your decision to simplify. I was also in the same situation as you found yourself. At my peak, I also Had 20+ accounts to manage. Like yourself, I found it a hassle and a headache to manage that many accounts. I'm down to 7 accounts, and this coming spring, I'm reducing down to 3-5 accounts.

Less is more!!

Congrats on your decision to simplify#

Re: Closing and CLD Spree

AverageJoesCredit — Sun, 29 Jan 2017 15:06:57 GMT

MORE IS LESS!

Thats awesomw to be able to do what you are doing. To be able to reach that point where YOU decide enough is enough is a worthwhile effort!. I dont love Lisa but i sure as heckfire appreciate her Godspeed on your journey

Re: Closing and CLD Spree

SouthJamaica — Sun, 29 Jan 2017 15:24:55 GMT

@ilovelisa wrote:
This is the opposite of what most MyFicoers want. However, I have reached a point where I believe I have too many cards and too much available credit. I do not have many major purchases to put on cards. I have found that my daily spending is drastically increased when I am paying by credit card. I have now opted to open a second checking account with a portion of my pay to be deposited in it to act as a budgeting tool. I am a lot more concious of my spending when I have an "allowance." I been doing this for 3 weeks now and have noticed my savings account increase quite a bit.

Tonight I closed my Freedom card with a $15K limit.
PenFed is getting the ax tomorrow when they open. That will be another $9.5K gone.

I called and reduced several limits too:
Bank of America from 25k to 10k
American Express from 18k to 10k
Discover from 17.2k to 10k

I will be keeping my Amex, BoA Mastercard, Discover, and local CU Visa. That way, I have one card from each major network. I will also keep my ICBC UnionPay card since it is too unique to go without.

I will go from $96.2K in avaliable credit to $41.5k. Still more than enough.

Kudos. I know it's tough to make those kinds of decisions and exercise that kind of discipline, but it's a great move.

Re: Closing and CLD Spree

JamP — Sun, 29 Jan 2017 18:42:30 GMT

Congratz to you. You are stronger then 90% of us.

It would be a very hard decision to make.

Most of us take a long time trying to get to those kind of limits.

In my experience, I haven't seen much that has denied people based on the amount of available credit. I could see if the utilization was high maybe.

Eventually I can see my goal once my scores are well above 800, will be to have 4 to 5 cards with $25k limits.

Re: Closing and CLD Spree

woodyman100 — Sun, 29 Jan 2017 23:08:49 GMT

I have done the same thing and then a month or so later the itch returns.

Though I have a feeling you're stronger than I am

Good luck!

Re: Closing and CLD Spree

grillandwinemaster — Sun, 29 Jan 2017 23:38:12 GMT

@AverageJoesCredit wrote:
MORE IS LESS!

I dont love Lisa

What do you have against Lisa?? Where's the love? Lol

Re: Closing and CLD Spree

Revelate — Mon, 30 Jan 2017 00:01:05 GMT

@ilovelisa wrote:
Management was another part of the decision. Going from 7 to 5 will help some. When I first found this site, I was one of those constantly apping for everything and mostly being denied for too new of a history and too many inquiries. Then the approvals started coming in. At the most I had 22 cards open at once. I have 46 accounts reporting as closed since 2011. I no longer have the time, desire, or energy to deal with so many credit accounts.

Hey senor!

That's sort of where I am now though I didn't take quite the same path you did; I have a bunch of cards arrayed in front of me that I haven't carried in weeks, and am pretty much down to using Credit Karma to see where I have balances that require payments or not as I simply despise the near-religious checking of 13ish different lenders monthly now (sigh).

I'm putting any decisions on haitus for a year as I know my life situation is going to change one way or another once this contract is up so I'm trying not to do anything rash, but if I get to any sort of steady state I think I'm going to be doing similarly and just closing several now unnecessary revolving lines (5+) and my last non-mortgage installment. I'm already down to 3 AF's one of which I don't count since it's a wash with the Costco membership anyway. Pretty much made the arbitrary cutoff the tradelines from my mid-2014 spree and later as potentials to be cut, and I'm guessing this probably happens.

Already reduced my credit lines by 20K, looking at another 15K in CLD (maybe, it's my lowest APR so I may just keep the 25K line) and 47.9K in closures in terms of CL loss.

To each their own admittedly but limits for the sake of limits are pointless in my estimation. Admittedly I'm beyond the state I started in 5 years ago (even if admittedly they didn't matter much to be then as prior posts will illustrate) and I'm gold plated on two bureaus by the end of this year and as such, limits aren't likely going to be difficult to re-establish if I do need them in the future short of a radical change in the credit card market.

Re: Closing and CLD Spree

Anonymous — Mon, 30 Jan 2017 00:12:02 GMT

With many recent posts on consolidaton, is it time to go to the Approvals subforum and start posting "I'm so sorry" after every successful app?

Re: Closing and CLD Spree

Revelate — Mon, 30 Jan 2017 00:16:48 GMT

@Anonymous wrote:
With many recent posts on consolidaton, is it time to go to the Approvals subforum and start posting "I'm so sorry" after every successful app?

Haha, likely not regardless of how entertaining I find the concept, just sayin'

Re: Closing and CLD Spree

wasCB14 — Mon, 30 Jan 2017 00:36:15 GMT

@Revelate wrote:
@Anonymous wrote:
With many recent posts on consolidaton, is it time to go to the Approvals subforum and start posting "I'm so sorry" after every successful app?
Haha, likely not regardless of how entertaining I find the concept, just sayin'

It always did seem funny to me...

"I applied and got approved for card X."

"Congrats on the approval!"

"I decided I didn't need card X after all and closed it."

"Congrats on simplifying!"

"I was thinking of applying for card X, but decided not to," (and avoided the inquiry and new account).

(Indifferent silence)

So here's a little +1 for everyone out there who has decided some potential new card just isn't worth bothering with.