topic Re: Question about closing cards in Credit Cards

Question about closing cards

Anonymous — Sun, 01 Jul 2012 16:54:42 GMT

Hi all, I'm in massive repair mode with my credit and learning quickly what helps and hurts. With that said I finally go approved for a Discover More card last night and am looking to make that my only active Credit card. I will leave my sub prime CC's open that don't have an AF, but I have a couple that do have them and want to close them. My AAOA is 4 Years and 6 Months and the ones I want to close are less than 2 years old. My current utilization is 46 percent, and the cards I'm looking to close are maxxed out. I plan on paying them off in the next few months as they all are low limit cards. When closing a card that is maxxed out;

A) Does the credit limit dissapear, say if the card has a 300 dollar balance, will it report as 300 dollars with a limit of 0?

B) Will closing some of my newer cards help my credit perhaps by making my AAOA longer by getting rid of less aged ones?

Thanks guys!

Re: Question about closing cards

pizzadude — Sun, 01 Jul 2012 17:49:33 GMT

Take a look at this sticky thread: http://ficoforums.myfico.com/t5/Credit-Cards/Closing-Credit-Cards/td-p/347190

Your AAoA includes both closed and open cards ~ so closing cards won't change it.

The CL won't be taken into consideration for closed cards with a 0 balance.

Re: Question about closing cards

LS2982 — Sun, 01 Jul 2012 18:02:45 GMT

It's never a good idea to max any of your cards out and let it report. I would rectify that asap with Discover being a new account they will be softing your reports and may do AA if you continue high balances.

Re: Question about closing cards

Anonymous — Sun, 01 Jul 2012 18:17:32 GMT

Oh, I plan on paying all of the accounts off over the next 6 months. They are all small ticky tack cards. I just was wondering if closing them will hurt me because I'd like to get rid of the ones with an AF

Re: Question about closing cards

LS2982 — Sun, 01 Jul 2012 18:20:12 GMT

I understand that but 6 months a long period of time considering you have a prime lender softing your reports monthly it may cost you auto clis in the future.

Re: Question about closing cards

Revelate — Sun, 01 Jul 2012 19:40:43 GMT

@LS2982 wrote:
I understand that but 6 months a long period of time considering you have a prime lender softing your reports monthly it may cost you auto clis in the future.

I think you're overstating the case. It may cost him auto CLI's now, but it likely won't in the future. Edit: If one assumes that future CLI's are based on your current CL in some form or fashion, then yeah you have a point . Sorry!

To the OP: not sure why you want to close the cards unless there's a AF due, and closing out cards with a balance is probably bad mojo, I'm not certain that closing a card with a balance due necessarily limits fees being applied to the account. Why not just proverbially sock drawer them?

Re: Question about closing cards

Anonymous — Sun, 01 Jul 2012 19:57:36 GMT

My Discover was approved with my current portolio, so I don't think they are going to renig on this next month for any reason.

I just want to close the cards with an AF, the ones that aren't AF will be sock drawered. I have 3 cards with AF's on them and would like to close them.

Once my Util% and collections comes off of my CR I plan on applying for a couple more prime cards next year. The discover was to get in the door with a prime card and earn their trust

Re: Question about closing cards

Revelate — Sun, 01 Jul 2012 20:05:09 GMT

LS isn't suggesting you'll get detrimental action taken by Discover against your account, just that you may lose out on some CLI opportunities.

Though FWIW, not certain if Discover More / Amex Zync etc can really be considered prime cards with their underwriting critieria. Maybe I'm too old school but when I see routine approvals sub 680 FICO's, hard to call them prime in my books. Regardless it's a nice card to have, and the direct competition with that product and Chase Freedom might be one of the driving factors for Chase's having relaxed the criteria on that card... everyone wins!

Re: Question about closing cards

Anonymous — Sun, 01 Jul 2012 20:06:36 GMT

Luckily credit report wise, a zync looks like every other Amex charge card.

Re: Question about closing cards

Anonymous — Sun, 01 Jul 2012 21:15:58 GMT

JTC411, if you have a couple of cards that are maxed out and at 640 fico then you should easily jump to around 680 fico after you get them down to 0, you mightr be able to get a prime card within a few months...never a good plan to max a card no matter what the lmit is; hurts your score!

Re: Question about closing cards

Anonymous — Sun, 01 Jul 2012 22:10:39 GMT

My intent was never to max them out. Just spent and spent and here we are. My wife and I are in much better financial situation paying off all our of loan debts off so now all we have is the CC's. That's why they will be paid off soon given the fact we have substantial income leftover each month.

While Discover might not be considered "prime" anymore, it's a good card for me with no annual fee and decent reward catagories. I'll take this discover card over the cards I have with AF any day of the week. Start of the right direction for me. Gotta get my AFNI collection off(wrote a GW letter to them) and a verizon 120+ late that I never knew about off and I'll be golden