topic Re: Which cards to close after paying off CC debt? in Credit Cards

Which cards to close after paying off CC debt?

Anonymous — Sun, 01 Jul 2012 07:33:52 GMT

For the past year I have been carrying high balances on many of my credit cards. I have resolved to work on paying them off, and then to avoid carrying balances (and paying interest!) going forward. Ultimately I'd also like to close some of these accounts, and eventually acquire some better rewards cards. I'm hoping to get some input as to the best strategy to improve my scores while decluttering my financial life. Here are the accounts I currently have open:

Card: CL / Balance - Year opened

Citi Platinum Select: 3600/3177 - 2008

*Cap1 Platinum: 750/0 - 2010

Discover Motiva: 1500/748 - 2010

Citi Diamond Preferred: 4200/3743 - 2011

Victoria's Secret: 500/0 - 2011

*WF Financial (Furniture Store): 5000/0 - 2011

Chase Slate: 5000/4113 - 2011

*GE (Select Comfort): 2900/2573 - 2012

Amex Zync NPSL - 2012 (approved yesterday)

(I also have my mortgage opened 2010, two student loans opened 2004 & 2006, and four closed revolvers on my CR.)

My initial plan is to leave everything open until I've paid all my balances to zero to avoid increasing my utilization %. Then, I'd like to close the three accounts marked with *. The Cap1, because it has an AF and low CL; the WF and the GE because they are store specific accounts that I don't forsee using anytime in the near future, but even if I was going to shop there I'd rather pay cash or charge them through a card that will give me rewards. Since these accounts are all relatively young, I don't think it should hurt my AAoA too much. Then I'd like to garden the rest for awhile and perhaps apply/upgrade to better rewards cards sometime in the future.

Is my plan sound, or is there something I'm missing that could damage my score? I know that the biggest thing hurting me right now is my utilization, and the biggest priority is paying off those balances. I just don't want to inadvertantly do anything to shoot myself in the foot. TIA for your input!

Re: Which cards to close after paying off CC debt?

Anonymous — Sun, 01 Jul 2012 10:20:56 GMT

If util is low or 0, no reason your plan would really hurt. At same time, no real reason to close those store accounts. Just sock drawer them and let them keep helping with aaoa and util until they cancel them on you.

Re: Which cards to close after paying off CC debt?

webhopper — Sun, 01 Jul 2012 13:45:00 GMT

I would ask discover.to change motiva to a more card. Id close cap 1 and leave open the.other.two you.flagged.

Re: Which cards to close after paying off CC debt?

webhopper — Sun, 01 Jul 2012 13:55:46 GMT

You can also Pc slate to freedom. Pc citi plat to forward. I think you'll be good then and wont need to apply for a new reward card. I think those 3 upgrades will do you some good. And by all means don't carry balances because that will negate any potential rewards you would earn.

Re: Which cards to close after paying off CC debt?

Anonymous — Sun, 01 Jul 2012 15:03:15 GMT

Thank you both for the input! I really want to ditch Capital One, but I might consider leaving the other two accounts open. I've already cut up the cards, and I suppose they won't hurt anything by just sitting there open since they're not charging me anything.

Webhopper, thanks so much for the PC suggestions! I will look into the cards you mentioned.

Re: Which cards to close after paying off CC debt?

Anonymous — Sun, 01 Jul 2012 16:12:44 GMT

@webhopper wrote:
I would ask discover.to change motiva to a more card. Id close cap 1 and leave open the.other.two you.flagged.

Good advice web.

Re: Which cards to close after paying off CC debt?

Anonymous — Sun, 01 Jul 2012 16:15:23 GMT

Well, I decided to do a search on these forums about converting my cards as mentioned above, and I found a thread about Discover conversions. I learned that there is a place on the Discover website to request a conversion without even calling - so I just converted my Motiva to Discover More! Thanks.

Re: Which cards to close after paying off CC debt?

webhopper — Sun, 01 Jul 2012 19:06:50 GMT

Awesome! Congrats on your new discover more!