topic Re: Closing Secure Cards in Credit Cards

Closing Secure Cards

Anonymous — Tue, 13 Mar 2018 15:13:56 GMT

Ok, so I have 3 secure cards... Citi(8/2017), capital one and discover(both 2/2018), I obviously opened then because I didn’t have any other cards besides being an authorized user on my dads 19yr old 25k credit card and wanted to grow my credit. I bank with chase and had some credit offers and decided to apply for slate and got approved for 2k which after I received the card I PC to freedom unlimited. Earlier this month I got approved for Apple rewards and JetBlue plus, so I’m making great progress. Now, I know I want the freedom and sapphire reserve and I dont want to wait 2 years to get them. Is it a good idea to close the 3 secure cards?

Re: Closing Secure Cards

Shadowfactor — Tue, 13 Mar 2018 14:48:34 GMT

I wouldn’t close them.

Maybe consider closing capital one since it will always be stuck in a certain tier for CLI after it graduates.

You took the hardpulls, might as well get some use out of the cards. Discover graduates after 7 months. Citi is a much longer graduation process but you can product change the DP once it graduates.

I count several new accounts opened in the past 6 months based off your post. 6 in the past 6 months. So you are over 5/24 with chase and won’t be able to obtain any more chase cards that 5/24 applies to without a Prequalified offer and even then that’s not guaranteed.

I wouldn’t apply for any new credit and garden your cards for atleast 6-10 months. A year would be ideal.

By then you will have several accounts over a year and you can reevaluate your options.

In regards to the CSR.
Chase likes to see a year of history and accounts with tradelines similar to 10K as that’s the minimum for that card. I would say your probably atleast a year away from getting that card. Maybe 2.

You could always look at product changing your Freedom U card into a CSP after a year. Much more realistic goal. The minimum for the CSP is 5K.

Re: Closing Secure Cards

kuku4koco — Tue, 13 Mar 2018 14:51:53 GMT

My personal opinion... I would keep the cards open 1 year. (Those cards might graduate, and limits increase, within the year) Then close if they don't. (You already took the Hard Pulls anyway) Congrats on your progress.

Re: Closing Secure Cards

Adkins — Tue, 13 Mar 2018 14:57:04 GMT

Unless you have a pre-approval showing for the freedom or reserve, you've now opened more than five accounts in the last two years, which violates Chase's 5/24 rule (in branch approvals seem to be the best way to get around this). Closing those secured cards (you didn't mention their limits) won't make a difference in your card count regarding 5/24. Closing them will, however, lower your overall utilization once they are gone and potentially your FICO scores. I know Chase doesn't like to be your first high limit card, so if you're aiming for the sapphire reserve, you'll have a better chance of approval by getting your other, nonsecured cards, above $5K and showing a good payment history.

Re: Closing Secure Cards

Anonymous — Tue, 13 Mar 2018 15:09:07 GMT

Thanks for the advise, I’ll keep them open and see what happens after they graduate.

Re: Closing Secure Cards

Anonymous — Tue, 13 Mar 2018 18:00:34 GMT

Like some have wrote; keep them open for now