topic Re: Help me feel good about closing my secured cards... in Credit Cards

Help me feel good about closing my secured cards...

masscredit — Fri, 22 Sep 2023 16:36:44 GMT

I've been rebuilding since May of 2022. That was about 7 weeks before my BK was discharged. Scores have gone from around 500 to my EQ score being a few points away from 700. I let some balances report last month so I might cross that line after those cards report $0 next week.

I have 9 cards with limits that total $33,300. 3 of them are secured ($11K total). Two of those cards won't graduate (OpenSky and Andrews). My SDFCU card might. I was hoping it would at the one year mark a few months ago. That didn't happen so I thinking maybe next year. High interest rates aren't good for credit but they are good for savings. I've been looking at banks that are offering 4.5%-5% for savings accounts and thinking about the money that money could be making. So I think it's time to close those accounts but I don't want to lose a third of my total limits. Not that I need them but... I think if anything maybe I'll close the two cards that won't graduate then hold onto SDFCU to see if it becomes unsecured next year.

My goal is to get all of my scores to 700. It's been a few months since I've updated all three. I'll do that next week. They are -EQ 695 (current), TU 657, EX 672. These two are from July. What do you think?

Current cards are -

TD Bank - $5000

SDFCU Secured - $5000

Andrews FCU Secured - $3000

OpenSky Secured - $3000

Capital One Savor One- $4500

Mercury - $5000

Ally Master Card - $2800

Capital One QuickSiver - $3000

Capital One Walmart Master Card - $2000

Re: Help me feel good about closing my secured cards...

Priory_Man — Fri, 22 Sep 2023 16:50:44 GMT

If the cards are of no use to you and if it is not going to push your utility % up where it will cost you a drop in points, then close them. You should still be able to build on what you already have without the 2 or 3 secured cards.

Re: Help me feel good about closing my secured cards...

ptatohed — Fri, 22 Sep 2023 16:52:23 GMT

Congrats on your accomplishments.

When you say you have secured cards with $5,000, $3,000, and $3,000 limits, does that mean you literally have $11,000 deposited with these banks? That is a lot of tied up dough.

I'd start getting that money out of there and into a HYSA as you mentioned. If you want to keep the cards open for any reason, can you simply pull some money out and just have a lower limit(s)?

Or just start closing them, I think you have some great un-secured cards and don't need them any longer.

Good luck!

Re: Help me feel good about closing my secured cards...

Zoostation1 — Sat, 23 Sep 2023 00:33:52 GMT

I'd start closing the secured cards. The first one being Open Sky since it has no chance to ever be unsecured.

Re: Help me feel good about closing my secured cards...

masscredit — Sat, 23 Sep 2023 00:57:09 GMT

@ptatohed wrote:
Congrats on your accomplishments.

When you say you have secured cards with $5,000, $3,000, and $3,000 limits, does that mean you literally have $11,000 deposited with these banks? That is a lot of tied up dough.

I'd start getting that money out of there and into a HYSA as you mentioned. If you want to keep the cards open for any reason, can you simply pull some money out and just have a lower limit(s)?

Or just start closing them, I think you have some great un-secured cards and don't need them any longer.

Good luck!

Yup... $11K in secured cards. I believe they helped me with the SLs I received for my other cards. I think I'm going to close out OpenSky and Andrews then see if the SDFCU card graduates next year. Unless I just close that too. Rather be making money with my money and closing them won't hurt my scores.

Re: Help me feel good about closing my secured cards...

citymunky — Sat, 23 Sep 2023 03:13:29 GMT

@masscredit wrote:
@ptatohed wrote:
Congrats on your accomplishments.

When you say you have secured cards with $5,000, $3,000, and $3,000 limits, does that mean you literally have $11,000 deposited with these banks? That is a lot of tied up dough.

I'd start getting that money out of there and into a HYSA as you mentioned. If you want to keep the cards open for any reason, can you simply pull some money out and just have a lower limit(s)?

Or just start closing them, I think you have some great un-secured cards and don't need them any longer.

Good luck!
Yup... $11K in secured cards.....Rather be making money with my money and closing them won't hurt my scores.

WOW $11k. Here I am waiting to close my Self card once the account hits 3 years old to get my measly $400 back.

You have decent cards with decent limits, I would close secured cards ASAP.

Re: Help me feel good about closing my secured cards...

TheRedHat — Sat, 23 Sep 2023 05:23:03 GMT

You scores will grow as your cards age, your inquiries decrease and your late payments or other negative items on your credit reports fall off.

Close the secured cards if you feel the money would serve you better in a High Yield Savings account.

Re: Help me feel good about closing my secured cards...

Jeffster1 — Sat, 23 Sep 2023 06:48:25 GMT

1. Dump the secured cards that will never graduate.

2.,Place money into HYSA.

3. Keep an eye on utilization and ensure it remains low despite the loss of CL.

Re: Help me feel good about closing my secured cards...

SouthJamaica — Sat, 23 Sep 2023 16:33:38 GMT

@masscredit wrote:
I've been rebuilding since May of 2022. That was about 7 weeks before my BK was discharged. Scores have gone from around 500 to my EQ score being a few points away from 700. I let some balances report last month so I might cross that line after those cards report $0 next week.

I have 9 cards with limits that total $33,300. 3 of them are secured ($11K total). Two of those cards won't graduate (OpenSky and Andrews). My SDFCU card might. I was hoping it would at the one year mark a few months ago. That didn't happen so I thinking maybe next year. High interest rates aren't good for credit but they are good for savings. I've been looking at banks that are offering 4.5%-5% for savings accounts and thinking about the money that money could be making. So I think it's time to close those accounts but I don't want to lose a third of my total limits. Not that I need them but... I think if anything maybe I'll close the two cards that won't graduate then hold onto SDFCU to see if it becomes unsecured next year.

My goal is to get all of my scores to 700. It's been a few months since I've updated all three. I'll do that next week. They are -EQ 695 (current), TU 657, EX 672. These two are from July. What do you think?

Current cards are -
TD Bank - $5000
SDFCU Secured - $5000
Andrews FCU Secured - $3000
OpenSky Secured - $3000
Capital One Savor One- $4500
Mercury - $5000
Ally Master Card - $2800
Capital One QuickSiver - $3000
Capital One Walmart Master Card - $2000

I think it makes sense to close them, and apply the freed up money to (a) paying down any unpaid balances on the other cards, and (b) making a little money in high yield savings accounts.

Re: Help me feel good about closing my secured cards...

masscredit — Sat, 23 Sep 2023 15:47:25 GMT

@SouthJamaica wrote:

I think it makes sense to close them, and apply the freed up money to (a) paying down any unpaid balances on the other cards, and (b) making you money in high yield savings accounts.

I do AZEO most months so I don't carry balances unless I let them report on purpose. This month I'll only have about $20 reporting on one card after they call close. Want to see what my current high scores are. Hoping for 5 more points on EQ. I have a list of banks offering 4.5%-5%. I'm going to take advange of that.

Re: Help me feel good about closing my secured cards...

SouthJamaica — Sat, 23 Sep 2023 16:34:44 GMT

@masscredit wrote:
@SouthJamaica wrote:

I think it makes sense to close them, and apply the freed up money to (a) paying down any unpaid balances on the other cards, and (b) making you money in high yield savings accounts.
I do AZEO most months so I don't carry balances unless I let them report on purpose. This month I'll only have about $20 reporting on one card after they call close. Want to see what my current high scores are. Hoping for 5 more points on EQ. I have a list of banks offering 4.5%-5%. I'm going to take advange of that.

That's great. I'm envious

Re: Help me feel good about closing my secured cards...

masscredit — Sat, 23 Sep 2023 16:38:30 GMT

@SouthJamaica wrote:
@masscredit wrote:
@SouthJamaica wrote:

I think it makes sense to close them, and apply the freed up money to (a) paying down any unpaid balances on the other cards, and (b) making you money in high yield savings accounts.
I do AZEO most months so I don't carry balances unless I let them report on purpose. This month I'll only have about $20 reporting on one card after they call close. Want to see what my current high scores are. Hoping for 5 more points on EQ. I have a list of banks offering 4.5%-5%. I'm going to take advange of that.
That's great. I'm envious

I learned from my BK. I don't buy things that I don't have the money for. I don't even like carrying a balance if it will be at 0%. That rough period really drilled it into me.

Re: Help me feel good about closing my secured cards...

danzig47 — Sun, 24 Sep 2023 00:00:09 GMT

I agree with everyone else to close those accounts, but instead of a HYSA I would suggest a brokerage account. If you keep it as cash, you'll make the same as a HYSA (for example, Fidelity SPAXX currently yiedling 4.98%), and you will have the flexibility to get more agressive when the equities markets turn around.

Re: Help me feel good about closing my secured cards...

masscredit — Mon, 25 Sep 2023 16:31:25 GMT

I believe the closed cards will still be part of my history for 7 years?

Re: Help me feel good about closing my secured cards...

Anonymous — Wed, 27 Sep 2023 16:55:57 GMT

@danzig47 wrote:
I agree with everyone else to close those accounts, but instead of a HYSA I would suggest a brokerage account. If you keep it as cash, you'll make the same as a HYSA (for example, Fidelity SPAXX currently yiedling 4.98%), and you will have the flexibility to get more agressive when the equities markets turn around.

Yes, but unless you are really into precise market timing, having it in a HYSA isn't so different. When the time comes you can move the money to a brokerage account (or open one if you don't have one) fairly quickly and buy those equities. That said, a financial planner did suggest keeping it in SPAXX or similar as the rates are fairly competitive (lots of HYSA are 5.25+% now, with one at 5.5%)

Re: Help me feel good about closing my secured cards...

masscredit — Fri, 06 Oct 2023 19:43:21 GMT

I closed Andrews and OpenSky today. They helped me get my scores into the mid-upper 600s in just over a year but it is time to move on. I'm going to hang onto the SDFCU card until it reaches 2 years. I'd like to maintain a relationship with them so hoping it graduates then. If not, that will be closed too.

Re: Help me feel good about closing my secured cards...

TheRedHat — Fri, 06 Oct 2023 22:07:01 GMT

So do you feel good, masscredit?

Re: Help me feel good about closing my secured cards...

Gonzozap — Sun, 08 Oct 2023 14:17:14 GMT

As for SDFCU, it took 3 yrs before my card was unsecured. I started with a $500 secured card. Now my unsecured limit is $14k. They increase it all the time. I use the card a lot. Glad I never closed this account.