topic Re: Closing down my account? Regions in Credit Cards

Closing down my account? Regions

Kayceegee — Tue, 18 Apr 2023 11:52:06 GMT

I live in a state where my nearest regions is about 20 minutes so I want to close my account. I have a standard checking and savings with them & also a secured credit card. I filed bk ch 7 in 2020 and that was my first card after I have since them accumalated a capital one quicksilver and savor one, rooms to go card through synchrony, and a student discover card. Even though my secured credit card of $500 is my longest line of credit since bk, would it be okay to close it? Regions hasnt allowed me to move to a visa due to the bk ch 7 so i just wanna cut ties, I dont find them beneficial. My main concern is my credit "time" being cut too short enabling me for other opportunties in the future. How would you go about this?

Re: Closing down my account? Regions

Bmom — Tue, 18 Apr 2023 12:46:30 GMT

If you close it, it will still stay on your credit reports for 10 years generally, so you should be fine. May as well get your money back and move on.

Re: Closing down my account? Regions

DONZI — Tue, 18 Apr 2023 19:06:27 GMT

It would be optimal to obtain a replacement card before dropping the RF card; to retain 3 active revolving credit accounts.

Re: Closing down my account? Regions

Jeffster1 — Tue, 18 Apr 2023 19:29:01 GMT

@DONZI wrote:
It would be optimal to obtain a replacement card before dropping the RF card; to retain 3 active revolving credit accounts.

This.

Re: Closing down my account? Regions

Kayceegee — Tue, 18 Apr 2023 21:00:30 GMT

Would my two capital ones and discover be enough? Or do you think I should get another bank card before closing?

Re: Closing down my account? Regions

DONZI — Wed, 19 Apr 2023 01:07:02 GMT

Sorry, I'm a moron. I scanned your message but visualized your signature as the reality.

The RF card leaving your collection of cards should not result in anything negative, aside from the associated reduction to your aggregate credit available.

Re: Closing down my account? Regions

MAZDA3 — Wed, 19 Apr 2023 16:54:39 GMT

@DONZI wrote:
It would be optimal to obtain a replacement card before dropping the RF card; to retain 3 active revolving credit accounts.

Is three really necessary? One of my relatives has had only two credit cards for years with scores over 800. I think a specific number to have is just hype. OP, your BK is still new. Ditch Regions if they aren't doing good for you. Perhaps look for a credit union closer to you (or NFCU if you're eligible), and think about letting the two cards you have age for another year and then consider a third card.

After my BK in 2009, I didn't even have a credit card until 2012 when a CU I had been a member of since 1997 offered me an unsecured card with a $500 limit. Used that card for a year and then got a $1k CLI to $1500 limit. Then in 2013 I became eligible to join NFCU and they offered me a $3k limit on a Cash Rewards card. That card is now at $15k. Used those two cards for a year and in 2014 Chase let me back in (after two recons) and gave me $2k on the old IHG card.

After BK I recommend slow and steady rebuilding.

Re: Closing down my account? Regions

Adkins — Wed, 19 Apr 2023 18:03:15 GMT

@MAZDA3 wrote:
@DONZI wrote:
It would be optimal to obtain a replacement card before dropping the RF card; to retain 3 active revolving credit accounts.
Is three really necessary? One of my relatives has had only two credit cards for years with scores over 800. I think a specific number to have is just hype. OP, your BK is still new. Ditch Regions if they aren't doing good for you. Perhaps look for a credit union closer to you (or NFCU if you're eligible), and think about letting the two cards you have age for another year and then consider a third card.

After my BK in 2009, I didn't even have a credit card until 2012 when a CU I had been a member of since 1997 offered me an unsecured card with a $500 limit. Used that card for a year and then got a $1k CLI to $1500 limit. Then in 2013 I became eligible to join NFCU and they offered me a $3k limit on a Cash Rewards card. That card is now at $15k. Used those two cards for a year and in 2014 Chase let me back in (after two recons) and gave me $2k on the old IHG card.

After BK I recommend slow and steady rebuilding.

Three is necessary if you want to maximize your FICO scores. My parental unit only has one discover card and a mortgage, and her scores are in the lower 800s. Does she want two more cards? No. But most people are here on the forums to maximize their scores and get the most out of their credit cards.

A few years ago several members worked on breaking down the FICO scoring model to the best of their ability. It's an interesting read. There's another relevant thread, if I can find it I'll post it here for you.

Re: Closing down my account? Regions

Aim_High — Wed, 19 Apr 2023 18:34:06 GMT

@MAZDA3 wrote:
@DONZI wrote:
It would be optimal to obtain a replacement card before dropping the RF card; to retain 3 active revolving credit accounts.
Is three really necessary? One of my relatives has had only two credit cards for years with scores over 800. I think a specific number to have is just hype.

You've been around for awhile, so you probably know that these "Three Card Optimum" discussions go back for many years on My FICO, @MAZDA3. For our members who have intricately studied FICO scoring, there are some reasons why three cards as a minimum would be "optimum" for FICO scoring purposes. For those who aren't into fully tweaking every point out of FICO, it's true that the exact number of cards may not matter. The FICO effect could be minimal. If I didn't want/need more than two credit cards, I certainly wouldn't add them either just because someone told me that I "needed" more.

But the postive effects of added cards also depends on usage patterns: how many cards are reporting balances, the credit limits and utilization effects, and other factors. The relative may have only two cards but how are they using them in terms of spending and paying before or after posting? And then there is a question of what would happen if that relative DID have a third card. Would they ever gotten the full 850 FICO score (instead of just over 800) or would adding a card help them it that were a goal?

I'm pretty sure this quote was from our former member (Birdman7) who was an ardent FICO score enthusiast. Quote from this 2019 Thread (Since he is no longer a member, the posting is just attributed "Anonymous.")

There is no magic number of credit cards that one should have. However, the revolving debt portion of your credit score is optimized by having three credit cards. Why three? Because that allows you to practice All Zero Except One (AZEO)* without incurring a penalty for too many accounts reporting balances. If you have only one card and it reports a balance to the credit bureaus you will be penalized for 100% of your cards having balances. With two cards, if one reports a balance you will also incur a penalty for 50% of your cards reporting a balance. Three cards allow you to have only one card report with a balance and not incur a scoring penalty.

Beyond the boost to FICO scoring, there are other reasons why at least three cards would be recommended by some of our members. For me, lender diversity is a HUGE reason. Having one or two credit cards gives one single lender the ability to impact 100% or 50% of your credit file with a single adverse action, CLD, or closure. Spreading the wealth among at least three (different) lenders allows each one no more than a 33% stake in influencing your credit report.

Re: Closing down my account? Regions

MAZDA3 — Wed, 19 Apr 2023 22:07:19 GMT

@Adkins wrote:
@MAZDA3 wrote:
@DONZI wrote:
It would be optimal to obtain a replacement card before dropping the RF card; to retain 3 active revolving credit accounts.
Is three really necessary? One of my relatives has had only two credit cards for years with scores over 800. I think a specific number to have is just hype. OP, your BK is still new. Ditch Regions if they aren't doing good for you. Perhaps look for a credit union closer to you (or NFCU if you're eligible), and think about letting the two cards you have age for another year and then consider a third card.

After my BK in 2009, I didn't even have a credit card until 2012 when a CU I had been a member of since 1997 offered me an unsecured card with a $500 limit. Used that card for a year and then got a $1k CLI to $1500 limit. Then in 2013 I became eligible to join NFCU and they offered me a $3k limit on a Cash Rewards card. That card is now at $15k. Used those two cards for a year and in 2014 Chase let me back in (after two recons) and gave me $2k on the old IHG card.

After BK I recommend slow and steady rebuilding.
Three is necessary if you want to maximize your FICO scores.
Not necessary at all.

But most people are here on the forums to maximize their scores and get the most out of their credit cards.
OP is literally rebuilding a three year old BK. Slow and disciplined is key. Advice on these forums is reckless at times.

Re: Closing down my account? Regions

MAZDA3 — Wed, 19 Apr 2023 22:13:03 GMT

@Aim_High wrote:
@MAZDA3 wrote:
@DONZI wrote:
It would be optimal to obtain a replacement card before dropping the RF card; to retain 3 active revolving credit accounts.
Is three really necessary? One of my relatives has had only two credit cards for years with scores over 800. I think a specific number to have is just hype.
You've been around for awhile, so you probably know that these "Three Card Optimum" discussions go back for many years on My FICO, @MAZDA3. For our members who have intricately studied FICO scoring, there are some reasons why three cards as a minimum would be "optimum" for FICO scoring purposes. For those who aren't into fully tweaking every point out of FICO, it's true that the exact number of cards may not matter. The FICO effect could be minimal. If I didn't want/need more than two credit cards, I certainly wouldn't add them either just because someone told me that I "needed" more.

It's embarassing watching people encourage a person nursing a three year old BK into more credit cards than necessary this early in rebuilding. Two cards three years in is sufficient going into year four. Slow and responsible is the best practice while rebuilding.

Re: Closing down my account? Regions

Aim_High — Fri, 21 Apr 2023 17:47:48 GMT

@MAZDA3 wrote:
@Adkins wrote:
@MAZDA3 wrote:
@DONZI wrote:
It would be optimal to obtain a replacement card before dropping the RF card; to retain 3 active revolving credit accounts.
Is three really necessary? One of my relatives has had only two credit cards for years with scores over 800. I think a specific number to have is just hype ...
Three is necessary if you want to maximize your FICO scores.
> Not necessary at all.

But most people are here on the forums to maximize their scores and get the most out of their credit cards.
> OP is literally rebuilding a three year old BK. Slow and disciplined is key. Advice on these forums is reckless at times.

@MAZDA3 wrote:

@Aim_High wrote:
@MAZDA3 wrote:
@DONZI wrote:
It would be optimal to obtain a replacement card before dropping the RF card; to retain 3 active revolving credit accounts.
Is three really necessary? One of my relatives has had only two credit cards for years with scores over 800. I think a specific number to have is just hype.
... For our members who have intricately studied FICO scoring, there are some reasons why three cards as a minimum would be "optimum" for FICO scoring purposes ...

> It's embarassing watching people encourage a person nursing a three year old BK into more credit cards than necessary this early in rebuilding. Two cards three years in is sufficient going into year four. Slow and responsible is the best practice while rebuilding.

I'm puzzled why you quoted myself and @Adkins in reference to people on the forum encouraging someone post-BK to seek new credit. Neither one of us said anything in that regard. You asked a rhetorical question and then made a statement that you don't agree with the community data points about the benefit of three cards, which was implied regardless of the circumstances of the original posting. Both of us simply answered your question and pointed readers towards the well-documented threads where they could learn more about why three cards is often considered optimum - but of course, that is only for FICO scoring. You said, "Not necessary at all." If you have contradictory supporting data points, the appropriate place to provide them and for that debate would be in some of those threads in the Understanding FICO Scoring Sub-forum. Absent supporting data to the contrary, the knowledge in those threads appears to stand unquestioned for tweaking optimum FICO scores.

Ironically, OP already has (5) credit cards (Regions; Capital One Quicksilver; Capital One Savor One; Discover Student; and Rooms to Go) although the signature only reflected three of those. After @DONZI made the comment about three cards, he also retracted it when he realized the siggy was out-dated. So the whole discussion is moot in OP's case.

@DONZI wrote:

Sorry, I'm a moron. I scanned your message but visualized your signature as the reality.

Nevertheless, I agree with your philosophy that slow-and-steady, whether building or rebuilding, is advisable. Credit is a long game, a marathon and not a sprint. I cringe when I see newcomers (or rebuilders) rushing to construct a huge card lineup, not realizing the potential damage they are doing in the process. LOL/24 is not really funny. Where I would disagree on this point is what is considered too fast or even reckless as you accuse. I often suggest that (no MORE than) one new account every six months will keep applicants within what is considered a modestly-safe credit-seeking range. That is within the known internal credit-seeking rules from the major lenders and generally supported by countless data points in the approvals or applications sub-forums. If OP did, in fact, have only three cards in three years, closing one and then adding another would have a negligible effect in credit scoring and rebuilding. At that point, adding another card would come down to personal preference and needs in terms of how many cards they would want to manage.

Re: Closing down my account? Regions

DONZI — Fri, 21 Apr 2023 21:37:47 GMT

..such is the way an active thread goes.

I ain't the sharpest crayon in the box but I think responders here concur.

EDIT: to clarify above I mean with the assessment of the BK, 3 card, FICO info above.. one of those 'everyone must know what I mean' events I tend to forget about all the time. lol

Scanning messages, leapfrogging posts which address partial thread context, etc. Clearly my errant initial post became the primary context for some in-progress and subsequent posts despite my relatively quick redaction.

I presume there is really no reason to express embarrassment based on a forum/conversation phenomenon that has been alive for a long long (add multipliers here as you wish..) long time.

Re: Closing down my account? Regions

Aim_High — Fri, 21 Apr 2023 21:48:56 GMT

No worries @DONZI. I didn't mean to single your error out again as much to point out that the entire thread diversion ... however it happened ... was not relevant in the first place. We're all human ... err, unless we have one of those AI bots among us now!

The three-card comment was still in-line with generally acknowledged forum guidance as our links above reference.

Re: Closing down my account? Regions

Gmood1 — Fri, 21 Apr 2023 22:20:00 GMT

Close the Regions, you'll be fine.

I have a family member who filed BK7 in 2020. Today is her 3 year mark on the dot!

She closed a secure starter card with in the last year or so. She now has 7 CC's. Which includes a Walmart, Apple, Penfed and Capital One Venture.

Her Fico 8 scores are EX 634, EQ 662, TU 650. Not terribly bad, for a not so old BK reporting. She did add several tradelines recently. Her scores are still recovering from the dip in average age and inqs.

Slow and Steady is good. Just don't be afraid to use your credit or being denied.

That will actually hamper your recovery, not help it.

As some have mentioned, having a thick credit profile will help you in the future. You can build a brick house or you can build a straw one. You'll have 800 scores with either.

But, it only takes one account to drop off, such as a installment loan. And you'll see your scores free fall.

One of my good friend's credit did that exact thing, once he paid off a vehicle. His scores were close to 850. But his file was super thin. Once the truck reported paid off, he was in the 750 range for a while, before recovering. He has since added more tradelines and scores stay in that 840 to 850 range.

Re: Closing down my account? Regions

DONZI — Fri, 21 Apr 2023 22:33:56 GMT

@Aim_High ibid.

I ACK that this forum is by nature one of the best quality sources for credit info. That should remain true, and the effort to maintain that is important to be sure.

..however, while individuals tend to conjure representative powers for peers or ancestors from time to time, it's a slippery slope. Perhaps similar to helping someone who does not wish help. It's difficult enough to get satisfactory representation from those we choose for such a task.