topic Re: Need Chopping Advice in Credit Cards

Need Chopping Advice

ScarlettHusky — Sun, 05 Nov 2023 05:40:50 GMT

Hey y'all.

I am thinking of closing two relatively low limit cards. I have a platinum rewards card from Credit One that I opened 9/2020, with a CL of $550 and a secured visa from Self Lender opened 6/2021 with a $500 CL. I have never been late on either card. The reason why I am considering closing them is that they have low/no rewards in comparison to the other cards I (now) have in my wallet, and also their lines are tiny in comparison to other cards I have. Since I have never been late, they'll only reduce my total credit by $1,050 right? My overall utilization is around 9%. My AAoA is right around 2.5 years old at all three bureaus, so I don't think closing those two will affect it that much.

Is there any real reason to keeping the two cards open, despite me feeling like I've "outgrown" them? This is my first time considering closing a credit card, so any advice or encouraging words would be appreciated. Thank you for your time.

Re: Need Chopping Advice

JoeRockhead — Sun, 05 Nov 2023 09:16:17 GMT

I'd close them, you're only losing minimal credit lines and you'll retain the positive history on your reports for 10 years.

No need to feel sentimental about keeping them. They've served their purpose as you've moved on to better things. Besides looking at it as a nice achievement, it can be a great feeling to cut them up and never look back!

Re: Need Chopping Advice

citymunky — Sun, 05 Nov 2023 12:53:52 GMT

Close them. I closed my CreditOne Platinum earlier this year before the AF, and I will close my Self card next year just before the AF hits.

Re: Need Chopping Advice

FireMedic1 — Sun, 05 Nov 2023 14:15:32 GMT

Ditch em. I closed my first 2 out of BK couple yrs in. And closed out 8 more earlier this year. They did what they were suppose to do. Start to build a file. Congrats!

Re: Need Chopping Advice

SouthJamaica — Sun, 05 Nov 2023 17:12:56 GMT

@ScarlettHusky wrote:
Hey y'all.

I am thinking of closing two relatively low limit cards. I have a platinum rewards card from Credit One that I opened 9/2020, with a CL of $550 and a secured visa from Self Lender opened 6/2021 with a $500 CL. I have never been late on either card. The reason why I am considering closing them is that they have low/no rewards in comparison to the other cards I (now) have in my wallet, and also their lines are tiny in comparison to other cards I have. Since I have never been late, they'll only reduce my total credit by $1,050 right? My overall utilization is around 9%. My AAoA is right around 2.5 years old at all three bureaus, so I don't think closing those two will affect it that much.

Is there any real reason to keeping the two cards open, despite me feeling like I've "outgrown" them? This is my first time considering closing a credit card, so any advice or encouraging words would be appreciated. Thank you for your time.

No, there's no real reason to keep them. Close them, and don't give it a second thought.

Re: Need Chopping Advice

Citylights18 — Mon, 06 Nov 2023 18:09:03 GMT

I disagree. I would keep them open but just not charge anything to them. Let the lenders determine when enough is enough and close them.

They will stay on your credit report history for 10 more years that is true. But if you keep them around you can get 12 or 13 more years on your credit history plus help your AoA more.

Re: Need Chopping Advice

Jeffster1 — Mon, 06 Nov 2023 18:14:21 GMT

It's always a good day when you can put Credit One in your rear view mirror.

While you're at it, dump the other one too.

Re: Need Chopping Advice

docbang — Mon, 06 Nov 2023 19:31:38 GMT

After closing your cards, get a nice decent size board, a heavy dose of glue behind the card and arrange it nice and neat. Put a glass in front and frame it. I have one in my garage and always look back and reminisce on my credit accomplishment. Also a good conversational piece, haha! Upgrade with old card(s) once in awhile.

Re: Need Chopping Advice

Anonymous — Tue, 07 Nov 2023 01:02:22 GMT

@Citylights18 wrote:
I disagree. I would keep them open but just not charge anything to them. Let the lenders determine when enough is enough and close them.

They will stay on your credit report history for 10 more years that is true. But if you keep them around you can get 12 or 13 more years on your credit history plus help your AoA more.

I've argued against this approach in the past! Basically, the two main approaches are

a) get rid of unused junk to reduce the management load

b) keep all non-AF cards, keeping them alive by charging from time to time to maximize AAoA, TCL etc

While I am firmly in a) I do understand the reasoning behind b).

But the "let the issuer close" seems in some way the worst of both worlds, you are keeping cards open that need at least some monitoring but not keeping them alive to allow them to have their value.

But it is an easy default choice, so there is that!