topic Re: Advice in Credit Cards

Advice

Anonymous — Wed, 30 Jan 2019 17:43:54 GMT

Hi All,

So, I just closed my Blaze Master Card after paying it off and unfortunately, my credit has plummeted way down to the 500s. I closed it because it really had no benefits for me. I want to close my capital one Platinum which gives me no benefit either but it is my oldest card and a secured credit. I have begged Capital one to grant this card unsecured status and they won't. I am paying an annual fee on it with no benefits whatsoever. I want to close it, however, I am afraid it will take my credit down even lower than it is now. Should I keep it or should I pay it off and let it just sit there? What I have done is just shredded the card so that I don't use. I would love to just keep three major cards - Discover It, Amazon Chase, and a Capital one card, specifically Quick Silver since I have the cash back opportunity. Any advice will be highly appreciated.

Re: Advice

aircobra — Wed, 30 Jan 2019 17:49:47 GMT

What is your utilization like after closing it? How many points did you lose? Were they your FICO or Vantage scores (because if they were your Vantage, you should check your FICO scores). Unless it raised your overall UTI, closing the account shouldn't have dropped your scores.

Re: Advice

FinStar — Wed, 30 Jan 2019 17:50:18 GMT

You mention that your scores have plummeted way down to the 500's. From what source are you obtaining those scores? Are these Vantage or FICO?

So, in closing the Blaze MC, that leaves you with 3 or 4 other CCs, correct? Discover, Chase Amazon Visa and Capital One (secured) Platinum, Quicksilver?

What are the limits on those cards? What are your balances or utilization for each?

Re: Advice

Anonymous — Wed, 30 Jan 2019 17:51:05 GMT

What are the balances, limits, and open dates for the cards that you currently have?

Crappy card could be worth keeping if it is your oldest by a long enough margin.

Re: Advice

Anonymous — Wed, 30 Jan 2019 17:55:30 GMT

My utilization on all cards is very high. All close to 90%. I'm getting my scores from credit wise and credit karma.

Discover IT CL $500

Amazon CL $500

Quick Silver CL $600

Capital One Platinum CL $350 (oldest)

Re: Advice

aircobra — Wed, 30 Jan 2019 17:57:33 GMT

@Anonymous wrote:
My utilization on all cards is very high. All close to 90%. I'm getting my scores from credit wise and credit karma.
Discover IT CL $500
Amazon CL $500
Quick Silver CL $600
Capital One Platinum CL $350 (oldest)

Get your FICO scores. While your UTI is extremely high, your FICO scores shouldn't have taken a huge plummet. I believe Vantage punishes you for closing an account.

Re: Advice

Anonymous — Wed, 30 Jan 2019 18:30:17 GMT

@Anonymous wrote:
My utilization on all cards is very high. All close to 90%. I'm getting my scores from credit wise and credit karma.
Discover IT CL $500
Amazon CL $500
Quick Silver CL $600
Capital One Platinum CL $350 (oldest)

ah, it seems all your CL are low, so at this point, closing any of them will up your UTL alot, so keep it open and pay them down, once you have UTL under control, app other card or ask for CLI.

Re: Advice

rbentley — Wed, 30 Jan 2019 18:32:37 GMT

@aircobra wrote:
@Anonymous wrote:
My utilization on all cards is very high. All close to 90%. I'm getting my scores from credit wise and credit karma.
Discover IT CL $500
Amazon CL $500
Quick Silver CL $600
Capital One Platinum CL $350 (oldest)
Get your FICO scores. While your UTI is extremely high, your FICO scores shouldn't have taken a huge plummet. I believe Vantage punishes you for closing an account.

As others have pointed out, you are seeing a drop in your Vantage scores. Your actual FICO scores likely did not suffer anywhere near as much. You can get real FICO scores for free from Discover and Experian.

If you close an account it still continues to report positive credit for another 10 years on your reports. Closing an account does not reduce your AAoA until it drops off 10 years from now. You lost points not because you closed an account but because your already high utilzation went even higher. You really need to work to get your UTL down. It is killing your scores.

I would close your Cap 1 account ASAP. but would caution you to get your UTL down before doing so. With your high UTL you really can't afford the loss of credit right now.

Re: Advice

FinStar — Wed, 30 Jan 2019 18:32:26 GMT

@Anonymous wrote:
My utilization on all cards is very high. All close to 90%. I'm getting my scores from credit wise and credit karma.
Discover IT CL $500
Amazon CL $500
Quick Silver CL $600
Capital One Platinum CL $350 (oldest)

Ok, so definitely don't close your Capital One Platinum at this point until you can get those balances further down. Are you currently only making minum payments on your current CCs?

Re: Advice

Anonymous — Wed, 30 Jan 2019 19:38:52 GMT

Yes. So, I'm paying the minimum on the rest while tackling one at a time. So I've now closed the Blaze which I paid off, next move is to pay of the Capital One and then close at some point and then take on the others...if this makes sense.

Re: Advice

Anonymous — Wed, 30 Jan 2019 19:56:11 GMT

I wouldn't close any more until you get them all paid down a bit more.

So, right now you have $1450 in credit at 90%. That means your balance is around $1300. If you pay off the cap one taking you to $950 ish, your overall utilization will drop to 65%. A pretty significant change. If you then close that card, you are right back to 90%.

The goal is to get the overall utilization down. That will help your score a good deal. As you pay a few more cards down and your score improves, you may be able to get increases on the other cards. Then consider closing it once your overall utilization/available credit can handle the hit.

My strategy would be to take the highest interest card and focus on paying that one down as my main focus. Then move to the next highest. While making regular payments on the other cards, of course.

Re: Advice

Anonymous — Wed, 30 Jan 2019 19:59:10 GMT

@TheBrad Thanks!

Re: Advice

Anonymous — Wed, 30 Jan 2019 20:13:32 GMT

Now, I'm wishing that I'd kept the Blaze opened for at least a couple of months while bringing the others up before closing it. Can I reopen it? Will this affect my credit if I do? Will this be a whole new application and term? I have shredded the card. I don't have the physical card with me.

Sometimes I think these credit policies are meant to keep people in debt - You can't use it too much and you can't close if you don't want to get too much into debt...

Re: Advice

xaximus — Wed, 30 Jan 2019 20:16:58 GMT

Definitely need to bring UTI down. There's a few thresholds that it looks like your hitting which is keeping your score down.

The thresholds are 8.9%, 28.9%, 48.9%, 68.9%, 88.9%. If you're close to 90% then you're hitting all 5 thresholds, that alone can be a drop of anywhere between 40-80 points. I would definitely bring your UTI under 8.9% and once it's down, it may be worthwhile to look into another card. My advice would be to pay down all of your cards and depending on what your score is after that (also, if you have any baddies). I would look into another card that may give you a higher CL for the time being.

Re: Advice

HeavenOhio — Wed, 30 Jan 2019 20:32:38 GMT

Blaze is a lousy card from a predatory bank. It's not worth keeping just to protect your score. Your other cards are from good banks. They're not going to cause issues other than the secured card not unsecuring.

Re: Advice

CreditInspired — Wed, 30 Jan 2019 21:58:59 GMT

@emtwo wrote:
Sometimes I think these credit policies are meant to keep people in debt - You can't use it too much and you can't close if you don't want to get too much into debt...
——————-

I want to try and change your mindset for future positive use of your credit cards. Honestly, credit is not to keep people in debt. Start thinking of your credit card as a debit card. You’re using the credit card’s grace period to buy what you want today. But then, like a debit card, you know you can only buy what you can afford to pay off. So in essence, you can use your card as much as you want too. It’s just that it has to be paid off quickly vs. running up the balance.

Also, if you had very, very low UT and closed every card but one, you would not have had a huge drop in scores.

It takes time to learn this and we’ve all been there.

GL2U

Re: Advice

SouthJamaica — Thu, 31 Jan 2019 02:17:17 GMT

@Anonymous wrote:
My utilization on all cards is very high. All close to 90%. I'm getting my scores from credit wise and credit karma.
Discover IT CL $500
Amazon CL $500
Quick Silver CL $600
Capital One Platinum CL $350 (oldest)

My advice would be not to close anything. Just pay them all down.