topic Re: Sock Drawer (SD) Questions in Credit Cards

Sock Drawer (SD) Questions

MontegoMack — Wed, 29 Aug 2012 01:52:43 GMT

What's the theory behind SDing a card?

How long does one do it for?

What are the repercussions of SDing a card?

How does one determine which card to SD?

Re: Sock Drawer (SD) Questions

ACsteel — Wed, 29 Aug 2012 02:04:49 GMT

Your AAoA keeps growing, the repercussion is that after lengthy inactivity they may cancel your card out of nowhere.

Re: Sock Drawer (SD) Questions

MontegoMack — Wed, 29 Aug 2012 02:07:59 GMT

Buy *why* SD a card when you can use it? Used or not, as long as the account is open, you're increasing you AAoA.

Re: Sock Drawer (SD) Questions

bettercreditguy1 — Wed, 29 Aug 2012 02:10:31 GMT

sock drawering also occurs when you place a less used credit card to the bottom of your used stack. Usually speaking, you do not want to loose the history or the aging of the account so you use it two or three times a year so it is not closed by the issuer. This often occurs when you get a cc that has a higher limit, more favorable terms, etc.

Re: Sock Drawer (SD) Questions

Anonymous — Wed, 29 Aug 2012 02:16:48 GMT

@MontegoMack wrote:
Buy *why* SD a card when you can use it? Used or not, as long as the account is open, you're increasing you AAoA.

The AAoA keeps increasing (open or closed) as long as it is on your CR.

SD is for those cards for which you don't have a current use. For instance, you may want to SD a non rewards card and only use a card with good rewards. Or store cards may go a long time between purchases for things like computers, tires, appliances and other things you don't buy often.

Generally better to SD than to close the account.

Re: Sock Drawer (SD) Questions

Anonymous — Wed, 29 Aug 2012 04:21:23 GMT

this would be something you do when you have cap one

Re: Sock Drawer (SD) Questions

Anonymous — Wed, 29 Aug 2012 05:02:52 GMT

lol too true Root, can't wait to SD mine when I hit prime ville

Re: Sock Drawer (SD) Questions

Anonymous — Wed, 29 Aug 2012 05:09:57 GMT

You might have a card that has rotating rewards categories and when the categories don't line up with your spending you put something else in it's place in your wallet. So you sockdrawer the rewards card until the categories change. Or it could just be a card that you have absolutely no need for anymore.

Re: Sock Drawer (SD) Questions

Revelate — Wed, 29 Aug 2012 05:11:45 GMT

FICO has other things to consider besides AAoA, namely there's the concept of scoring an individual tradeline, and age there is definitely a factor (tradeline seasoning).

Continuing to rack up payment history on a card you're not using is quite often a better FICO decision than simply closing the account. Not always, and it's not always fiscally smart if there's a non-trivial AF (however you define that), but in many cases it's in your best interests between FICO and building a relationship with a particular lender to keep that card active, even if you're not using it often.

Re: Sock Drawer (SD) Questions

Shogun — Wed, 29 Aug 2012 05:16:18 GMT

@Anonymous wrote:
@MontegoMack wrote:
Buy *why* SD a card when you can use it? Used or not, as long as the account is open, you're increasing you AAoA.
The AAoA keeps increasing (open or closed) as long as it is on your CR.

SD is for those cards for which you don't have a current use. For instance, you may want to SD a non rewards card and only use a card with good rewards. Or store cards may go a long time between purchases for things like computers, tires, appliances and other things you don't buy often.

Generally better to SD than to close the account.

The AAoA increases for 10 years then falls off but you lose the CL.

Re: Sock Drawer (SD) Questions

compassion101 — Wed, 29 Aug 2012 05:36:44 GMT

@MontegoMack wrote:
Buy *why* SD a card when you can use it? Used or not, as long as the account is open, you're increasing you AAoA.

But why use it when you get rewards (or better rewards) on a different card? It's all about the money/rewards/benefits. Every so often you take it out of the SD so that it shows activity and doesn't get closed, if you don't want it closed.