topic Close my Credit One/Merrick cards? in Credit Cards

Close my Credit One/Merrick cards?

Anonymous — Mon, 26 Nov 2018 16:56:12 GMT

Is it time to close my card with credit one? They were my first card two years ago when I started rebuilding and were helpful in getting my scores up, but now I've outgrown the card. I'd keep it sitting around, but it has an AF that I'd rather not pay. I did get them to waive the AF for a little while, but that's expiring soon. I closed my second Credit One card a few months ago to avoid the AF on that one (they didn't offer to waive the fee on that card).

Is there a reason to keep this card? I never use it, so I'm doubtful they'll offer me an extension on the AF waiver. I know it should continue to report even after it's closed, but there was a period when they waived the AF that they accidentally reported it as closed and my credit score on Credit Karma dropped noticeably (I know that's not a true score, but still gives me pause). The SL on the card is only $1,050, so it wasn't due to an increase in my utilization.

My cards are:

Credit One Visa - opened 7/16, CL $1050

Amazon store card - opened 10/17, CL $4k

Target store card - opened 1/18, SL $2.5k

Lane Bryant store card - opened 1/18, SL $750

Merrick Bank - opened 5/18, SL $1.1k

Quicksilver - opened 3/18, SL $2.5k

Amex Delta Gold - opened 4/18, SL $6k (was $12k, but I moved $6k to my BCE)

Amex BCE - opened 11/18, SL $8k (originally $2k, moved $6k from Delta Gold)

Discover IT - opened 11/18, SL $7k

I'm also thinking of closing the Merrick. I don't really know why I got it, and never use it since I have other cards that earn rewards. The SL on it should double in a couple of months, but my utilization is at 10% right now so having that 2k SL isn't a big deal. That card does not have an AF. Reasons to keep it or ditch it?

Planning to garden for the next year and grow the cards I have.

Thanks!

Re: Close my Credit One/Merrick cards?

NRB525 — Mon, 26 Nov 2018 17:18:41 GMT

Close them both, and enjoy the good feeling of outgrowing sub-prime, high fee cards.

Congrats on your progress.

Re: Close my Credit One/Merrick cards?

RonM21 — Mon, 26 Nov 2018 17:21:53 GMT

If you think you have outgrown the card and begun to establish yourself with enough credit, than I say close it (Credit One). Most people will suggest that you not hold on to Credit One longer than needed.

On the Merrick, I think it is more a matter of your preference on your profile. Keeping it somewhat helps the AAoA, but at the same time closing it would not be too dramatic at this point. It's all about what you believe you can handle and how you think it fits within your profile and preference.

Re: Close my Credit One/Merrick cards?

DaveInAZ — Mon, 26 Nov 2018 17:41:20 GMT

Credit One - Don't even think about, shut it down.

Merrick Bank - If there's no AF and the CL is set to double why not keep it? No rewards, but they're easy to keep happy with small charges. I still have my no fee Merrick Bank from my rebuild in 2012, it hasn't had anything but my $10.80 Netflix sub in years and they seem happy with that and the $3100 CL isn't bad. On the other hand, unless you're a big Lane Bryant shopper that can go.

Re: Close my Credit One/Merrick cards?

JayTee1 — Mon, 26 Nov 2018 17:44:01 GMT

Closing one or both won't affect your AAOA (not for ten years anyway).

It will affect your overall utilization; you'd have to figure out whether that matters or not.