topic got the CC i wanted, do i keep the old one? in Credit Cards

got the CC i wanted, do i keep the old one?

Anonymous — Wed, 27 Oct 2010 14:14:59 GMT

i have had a CC through WF (my bank) for about 2 years. it was/is my first credit card. i recently got approved for a car loan, so i have been making those payments for about 3 months. both of those combined got my credit score/history good enough to get an Amex card (fidelity rewards, 2% back on all purchases) i've wanted for a while.

now that i get 2% back on everything, it's kind of pointless for me to use my WF CC, or at least, i don't really want to use it. but i have read that your first CC you don't want to cancel because it helps show your credit history. is that true? any other reason i should keep this credit card open, and if i keep it open, do i have to put charges against it each month? i'm sure the amex and the car loan are plenty to keep my credit score up, right? if i can cancel it without any repurcussions, that would be great.

thanks for any help.

Re: got the CC i wanted, do i keep the old one?

MarineVietVet — Wed, 27 Oct 2010 14:17:50 GMT

@Anonymous wrote:

i have had a CC through WF (my bank) for about 2 years. it was/is my first credit card. i recently got approved for a car loan, so i have been making those payments for about 3 months. both of those combined got my credit score/history good enough to get an Amex card (fidelity rewards, 2% back on all purchases) i've wanted for a while.

now that i get 2% back on everything, it's kind of pointless for me to use my WF CC, or at least, i don't really want to use it. but i have read that your first CC you don't want to cancel because it helps show your credit history. is that true? any other reason i should keep this credit card open, and if i keep it open, do i have to put charges against it each month? i'm sure the amex and the car loan are plenty to keep my credit score up, right? if i can cancel it without any repurcussions, that would be great.

thanks for any help.

Here is an excellent thread discussing the subject of Closing Credit Cards.

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800, 10/10-813
TU - 10/10-774
You can do the same thing with hard work

Re: got the CC i wanted, do i keep the old one?

Anonymous — Wed, 27 Oct 2010 14:27:58 GMT

thanks, sounds like it isn't going to really hurt me to close it as long as the balance is $0. i generally stay within 20-25% on UTIL limit on both cards, separately or cumulatively.

if i left it open, does it hurt to not use it?

Re: got the CC i wanted, do i keep the old one?

MarineVietVet — Wed, 27 Oct 2010 14:31:18 GMT

@Anonymous wrote:

thanks, sounds like it isn't going to really hurt me to close it as long as the balance is $0. i generally stay within 20-25% on UTIL limit on both cards, separately or cumulatively.

if i left it open, does it hurt to not use it?

Eventually the issuer might close the account because of inactivity but that is all that can happen to a card that sits idle.

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800, 10/10-813
TU - 10/10-774
You can do the same thing with hard work

Re: got the CC i wanted, do i keep the old one?

Anonymous — Wed, 27 Oct 2010 14:32:48 GMT

tuffluck wrote: if i left it open, does it hurt to not use it?

It's generally recommended to use, every month or so, an account to avoid either closure by creditor or CLD, neither of which would be the end of the world if you aren't needing this card at all.

But, to keep the status quo, consider putting a tank of gas on it each month, or your cable bill.

I would hold on to the card, btw. And any card you hold on to, is worth a little effort to keep it happy.

Re: got the CC i wanted, do i keep the old one?

Anonymous — Wed, 27 Oct 2010 14:47:43 GMT

I suggest you keep it for several reasons.

1. Even 2 CC is considered very thin for a credit score.

2. Not everyone takes the AMEX.

3. It is highly advisable to have a backup card, espcially when travelling.

Is the WF a rewards card? If not, go for an upgrade.

Re: got the CC i wanted, do i keep the old one?

Anonymous — Wed, 27 Oct 2010 14:52:16 GMT

Defintely just keep it. WF can grow with you and can help your overall utilization.

Whats the limit on the Fideility 2% card? I want one of those as well.

Re: got the CC i wanted, do i keep the old one?

Anonymous — Wed, 27 Oct 2010 16:06:31 GMT

thanks for the help, guys. i think i will keep the card for several of the aforementioned things i did not considered, especially the piece about how not everywhere takes AMEX.

yes, the card is a rewards card. in fact, i have enough points to get a free plane ticket with the card, totaling about 1.25% back if you convert airplane ticket dollars into a cash back percentage. actually, that is quite good. however, i get rewards points for using my debit card with WF also.

some may be used to multiple cards, i just like to keep things simple. does anyone recommend billpay or other similar methods to pay off bills/cards through one service? i just feel like with bills, cards, auto loans, every month i might accidentally forget something.

my limit on the fidelity rewards is 7,500. to some that is probably low, but i am in my 20s and have only had credit card history for about 1.5 years, so to end up with this card and that limit, i feel like i have accomplished something. for reference, the WF card is only 2,800 as far as limit goes. i have just used it for bills each month, then i usually pay off whatever gets me to a <10% utilization rate by the time the card actually reports my balance to the credit bureaus. that is probably why i was able to get the AMEX now. i had a 720 score when i checked this time last year and was not able to get the card then; this time around i didn't even check my score.

Re: got the CC i wanted, do i keep the old one?

Anonymous — Wed, 27 Oct 2010 16:12:46 GMT

also, as far as UTIL goes, if i have 7500 and 2500 (round down for an even number) limit (10,000), does that mean no matter which card i spend the money on, credit bureaus only look at overall UTIL? so could i put 2,000 on the 2,800 card and instead of seeing 71% on the WF card and 0% on the fidelity card, they just see 20% and that's it?

Re: got the CC i wanted, do i keep the old one?

Anonymous — Wed, 27 Oct 2010 16:12:50 GMT

I set up autopay for all the cards that allow for it (my WF and Amex cards are among those, not sure about FIA). I still usually pay my cards when I want, but if I forget about it, autopay will kick in.

Re: got the CC i wanted, do i keep the old one?

Anonymous — Wed, 27 Oct 2010 18:09:20 GMT

@Anonymous wrote:
also, as far as UTIL goes, if i have 7500 and 2500 (round down for an even number) limit (10,000), does that mean no matter which card i spend the money on, credit bureaus only look at overall UTIL? so could i put 2,000 on the 2,800 card and instead of seeing 71% on the WF card and 0% on the fidelity card, they just see 20% and that's it?

It's not quite that simple. As far as I know, Fico looks at both, the overall balance and the balance of single accounts. Of course, the overall balance will have a larger effect. If one of your cards doesn't report a limit, it gets even more difficult, but I don't think that's the case with your cards.

Re: got the CC I wanted, do I keep the old one?

Anonymous — Wed, 27 Oct 2010 18:43:53 GMT

@Anonymous wrote:

@Anonymous wrote:
also, as far as UTIL goes, if I have 7500 and 2500 (round down for an even number) limit (10,000), does that mean no matter which card I spend the money on, credit bureaus only look at overall UTIL? so could I put 2,000 on the 2,800 card and instead of seeing 71% on the WF card and 0% on the fidelity card, they just see 20% and that's it?
It's not quite that simple. As far as I know, Fico looks at both, the overall balance and the balance of single accounts. Of course, the overall balance will have a larger effect. If one of your cards doesn't report a limit, it gets even more difficult, but I don't think that's the case with your cards.

First of all, agree with everyone.... keep the card for all the reasons mentioned and then some.

Next, it is best to report a balance on less than half of your open accts which means that you should only report a balance on one of these cards, and actually, having a 3rd is not a bad idea (but still only report a balance on one.)

Also, FICO looks at both individual card utilization and overall utilization so.... Ideally, you would want to report < $650 (9%) a month on the $7500 Card and $0 on the other. As others have mentioned, you will probably want to run something through the other card periodically and if it's a monthly charge, all the better, but just be sure to pay that one off before the statement cuts to avoid posting a balance.

IMO, this is the best combo for improving FICO scoring. I'm sure others, (hauling) can probably add quite a bit to this!

Re: got the CC I wanted, do I keep the old one?

MarineVietVet — Wed, 27 Oct 2010 18:51:10 GMT

@Anonymous wrote:

First of all, agree with everyone.... keep the card for all the reasons mentioned and then some.

Next, it is best to report a balance on less than half of your open accts which means that you should only report a balance on one of these cards, and actually, having a 3rd is not a bad idea (but still only report a balance on one.)

Also, FICO looks at both individual card utilization and overall utilization so.... Ideally, you would want to report < $650 (9%) a month on the $7500 Card and $0 on the other. As others have mentioned, you will probably want to run something through the other card periodically and if it's a monthly charge, all the better, but just be sure to pay that one off before the statement cuts to avoid posting a balance.

IMO, this is the best combo for improving FICO scoring. I'm sure others, (hauling) can probably add quite a bit to this!

A MOST excellent post!

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800, 10/10-813
TU - 10/10-774
You can do the same thing with hard work

Re: got the CC i wanted, do i keep the old one?

Anonymous — Wed, 27 Oct 2010 20:30:56 GMT

Why not use the Wells Fargo bill pay, since you want to pay from the same place?