topic Re: Help-with keeping cards in Credit Cards

Help-with keeping cards

Maya12 — Sun, 17 Jan 2010 01:31:56 GMT

Hi,

I have been working on reducing debts and improving scores. It is going pretty well so far. Please advise on which cards I should keep.

Capital One - 500 cl / No balance Annual fee 19.00 - Note: this is the first card I ever got .....10 yr history

HSBC 1 - 1000 cl / No balance would like to get rid of this annual fee 59.00

HSBC 2 - 2000 cl / No Balance - Also annual fee 59.00

Merrick - 1600 cl / No balance - Also annual fee 59.00

SST - formally Providian 300 cl / No balance annual fee 59.00

Jupitner - 1000 cl / Balance of 455.00 No annual fee

Please advise, Thanks

Will my score drop when I cancel, I just paid off HSBC and Merrick in-full this month.

Re: Help-with keeping cards

DI — Sun, 17 Jan 2010 01:37:29 GMT

Dropall the AF cards except for the Cap 1. It's the cheapest to keep, plus it's your oldest card. Pay the Juniper card off first before cancelling the other cards.No, your score won't drop. The cards will still report for another 10 years or more.

Message Edited by DI on 01-16-2010 07:37 PM

Re: Help-with keeping cards

MarineVietVet — Sun, 17 Jan 2010 02:24:37 GMT

@DI wrote:
Dropall the AF cards except for the Cap 1. It's the cheapest to keep, plus it's your oldest card. Pay the Juniper card off first before cancelling the other cards.No, your score won't drop. The cards will still report for another 10 years or more.

Message Edited by DI on 01-16-2010 07:37 PM

See Di we can agree on some things.

Re: Help-with keeping cards

DI — Sun, 17 Jan 2010 02:29:25 GMT

@MarineVietVet wrote:
@DI wrote:
Dropall the AF cards except for the Cap 1. It's the cheapest to keep, plus it's your oldest card. Pay the Juniper card off first before cancelling the other cards.No, your score won't drop. The cards will still report for another 10 years or more.

Message Edited by DI on 01-16-2010 07:37 PM
+1

See Di we can agree on some things.

LOL. I learned it from you.

Re: Help-with keeping cards

Creditaddict — Sun, 17 Jan 2010 02:45:58 GMT

I would at least try to get the AF removed before closing out... but if they won't waive than surely you can obtain some more no af cards

Re: Help-with keeping cards

Maya12 — Sun, 17 Jan 2010 05:10:50 GMT

Thank you guys for your assistance. I will first ask to have them waved; if they refuse I then will cancel them, however I will wait until Jupiter is paid off.

Thanks again.

Re: Help-with keeping cards

Anonymous — Sun, 17 Jan 2010 06:21:46 GMT

If they refuse to waive the annual fee, I wouldn't instantly close the cards. I would wait until the month before the AF is due that way you can at least pile up a few more months of AAoAs to at least get something out of it.

Re: Help-with keeping cards

okiesean — Sun, 17 Jan 2010 07:13:34 GMT

Before you cancel the HSBC see if you can combine the two cards into one. I dont know if HSBC even does that but perhaps they might. It would give you a 3000 c/l and might be worth it before you cancel them out. Also check to see if you can do a PC. Again I have limited experience with HSBC so they may or may not do that. I would close the merrick for sure and SST and ask if you can get a CLI on the cap one card since you have had them for so long or PC to a card with no fee that can have an increase. Also it might be possible to get a CLI on the juniper card if they see a higher c/l on your other cards like if you get HSBC to merge the two accounts into one credit line even if you end up cancelling them when the annual fee comes due.

I would wait until the month before the fees are due to cancel the HSBC cards. I have a friend who got her fee waived and a CLI when she got a best buy mc with an annual fee and a 300 cl. She wound up with no fee for 1 year and a 150 CLI.

Hope this helps and good luck.

Re: Help-with keeping cards

Anonymous — Sun, 17 Jan 2010 17:24:53 GMT

@DI wrote:
Dropall the AF cards except for the Cap 1. It's the cheapest to keep, plus it's your oldest card. Pay the Juniper card off first before cancelling the other cards.No, your score won't drop. The cards will still report for another 10 years or more.

Not smart advice. Why suggest someone drop to one open revolving TL and eliminate over 90% of their total CL's? Total CL's and maintaining at least 3 to 4 open revolving TL's are important!

Replace before closing, close only before next AF is due, ask for AF waivers from all accounts with AF's. I was able to get HSBC to permanently waive the AF on my Direct Merchants Bank MC. Frankly that is not likely to happen for you, but a one year waiver is quite possible on any of these accounts.

Re: Help-with keeping cards

DI — Sun, 17 Jan 2010 17:30:47 GMT

@Anonymous wrote:
@DI wrote:
Dropall the AF cards except for the Cap 1. It's the cheapest to keep, plus it's your oldest card. Pay the Juniper card off first before cancelling the other cards.No, your score won't drop. The cards will still report for another 10 years or more.
Not smart advice. Why suggest someone drop to one open revolving TL and eliminate over 90% of their total CL's? Total CL's and maintaining at least 3 to 4 open revolving TL's are important!

Replace before closing, close only before next AF is due, ask for AF waivers from all accounts with AF's. I was able to get HSBC to permanently waive the AF on my Direct Merchants Bank MC. Frankly that is not likely to happen for you, but a one year waiver is quite possible on any of these accounts.

Sometimes one has to close some accounts before app'ing for new ones. Depending on what the strength of the OP's credit, that may just very well be the road to take. Speaking from experience, it helped me out a lot closing some accounts before app'ing. The last thing I want to hear as a reason for decline is too many revolving accounts.

Re: Help-with keeping cards

Anonymous — Sun, 17 Jan 2010 17:37:50 GMT

It is rarely necessary to eliminate your existing credit in order to obtain new credit. In general it takes credit to get credit!

Re: Help-with keeping cards

DI — Sun, 17 Jan 2010 17:40:12 GMT

But wouldn't the 10 Y.O. Cap 1 card be enough for the OP to obtain more credit?

Re: Help-with keeping cards

Anonymous — Sun, 17 Jan 2010 17:52:39 GMT

NO!

One open $500 revolving TL is not a good position to put yourself in! Do you realize that you just recommended that someone slash their total available CL's from $6.4K to $500? Must attempt AF waivers on all cards first - then replace before closing and slowly! There is value in an aged revolving TL to offset that AF even if it is only a year old. New accounts destroy AAoA!

On top of all else it is a CapOne card and may be locked forever at a low CL!

Re: Help-with keeping cards

Anonymous — Sun, 17 Jan 2010 19:02:07 GMT

I agree with several elements of various posts.

1. Attempt to combine accounts where you have more than 1 with same bank. This effectively removes 1 AF per bank.

2. Keep the CapOne as the oldest TL and lowest AF.

3. Keep accounts open till just prior to AF fee being due again

4. Prior to canceling, ask for waiver (temp or perm). If successful, keep at least till next time AF coming due.

5. Keep at least 2 accounts. One primary use, one backup.

6. Cancel those cards that have highest fees/APR, least use/no use.

IMO

Re: Help-with keeping cards

Anonymous — Sun, 17 Jan 2010 19:20:39 GMT

DI and txjohn:

It is very easy to speak from a position of plenty. Personally, I think it is unconscionable to counsel someone to drop 90% of their CL. Sometimes you have to eat an AF for a while until you can replace the credit line. And you have to replace credit lines slowly to avoid AAoA devastation.