topic Re: Too many credit cards: in Credit Cards

Too many credit cards:

Anonymous — Wed, 09 Oct 2013 22:59:37 GMT

Hi:

This is my first post on this board and I'm hoping someone can really help me.

I'm 67 years old, myfico score is over 800, I have approx $200,000.00 in available credit, with about 2% to 5% credit utilization. I have a long credit history. But my problem is that I have over 35 credit cards, some with 15-20K credit limits. I cannot manage these cards anymore, it's just too much work. I have 4 & 5 different cards from the same issurer. How do I condense these cards without hurting my credit score. Can I ask the bank that issued 4 or 5 cards to take the credit lines from 2 or 3 cards and put it into 1 or 2 cards. It seems as though these cards actually have me locked in as a prisoner now. Anyone with any suggestions would be gladly appreciated.

Re: Too many credit cards:

Anonymous — Wed, 09 Oct 2013 23:08:42 GMT

With low utilization, closing a credit card doesn't hurt your score in the short/medium term. Closed accounts continue to report for about 10 years. Depending on the issuer, you may be able to move the credit line from one card to another and close the first card. Or, if you don't need all your existing CL, you can just close some of the cards.

What are you doing that is now too much to manage? Are you rotating them or something, making sure they stay active?

If so, you could simply stop using some, and they may get closed on their own

Re: Too many credit cards:

simi_go — Wed, 09 Oct 2013 23:09:13 GMT

At 67 years old you have to ask yourself do you need all of that credit? If you own your own business then I can understand, or if you have a very large monthly spend then it makes sense as well, personally with 35 cards I would call the issuers and see if the can combine the limits of some of the cards and close them after the extras after they are consilidated, and if you have cards that you do not need, then just close them. I can't see any reason at all to have 35 credit cards. Just my 2 cents.

Re: Too many credit cards:

myjourney — Wed, 09 Oct 2013 23:09:47 GMT

Welcome to the forum

Yes, you can ask that the credit lines be put on different cards in some cases yes others no

Also SD any that aren't being used

Re: Too many credit cards:

Anonymous — Thu, 10 Oct 2013 00:28:29 GMT

I'll have to cossign simi, "I can't see any reason at all to have 35 credit cards." Best thing you can do is to see if you can combine some of your credit lines. If not, chop them up and close them down.

Re: Too many credit cards:

too-much-time — Thu, 10 Oct 2013 05:05:55 GMT

The suggestion to consolidate multiple cards with the same lender into one has much going for it, although FICO might then disregard it in its utilization calculations due to too high of a credit limit, above $40,000 or something like that I think it said somewhere. It's quite the dilemma!

Re: Too many credit cards:

Creditaddict — Thu, 10 Oct 2013 07:41:28 GMT

Want to list the cards and limits?
Consolidate many probably would be great and not hurt at all

Re: Too many credit cards:

Networth — Thu, 10 Oct 2013 08:14:44 GMT

Honestly, I would combine what I could and close the rest. They will remain on your CR for 10 years which puts you at 77. Isn't there a sticky at the top of the boards about closing cards?

Re: Too many credit cards:

takeshi74 — Thu, 10 Oct 2013 13:02:15 GMT

@Anonymous wrote:
Can I ask the bank that issued 4 or 5 cards to take the credit lines from 2 or 3 cards and put it into 1 or 2 cards.

You can always ask. Whether they will or not is a different matter. However, it doesn't hurt to ask before closing cards.

@simi_go wrote:
I can't see any reason at all to have 35 credit cards.

Subjective matter but the OP has already established that 35 is too many for the OP.

Re: Too many credit cards:

Anonymous — Thu, 10 Oct 2013 13:12:24 GMT

Make a list (whether you share it with us is up to you, I'm sure the brilliant members of this board will have lots of opinions on what to keep/toss) of each of your cards and their limits, APR, etc. Go through each card and write down what you like about it, what you use it for, etc. Also write down negatives like annual fees or bad customer experiences. From here, you can get a feel for which cards you want to survive the Cardpocalypse, and which cards will go first in the shredder. Closing cards in and of itself will not hurt your credit score. The way that it can be a problem is that it reduces your total utilization, but that doesn't seem like a big issue for you. Just make sure to pay the cards down to 0 before clozing.

For example:

Walmart Store Card, Limit: $20K, APR 99999%

What I like: Easy limit increases, 0% APR deals

What I don't like: My APR the rest of the time, no rewards

Organize the list by lender, so you have an easy picture of which cards are from which lender. Now, you will be prepared to make phone calls and know which cards you want to keep and which you don't. Call each lender, and say I have A B C cards with X Y Z limits. I want to keep cards A and B but not C. Can I take the limit from C and put it on A and B (or whichever card you want it on). If they don't cooperate, give them the axe. With that score and history, you can be as choosy as you like.

Also, if there are any higher end cards with annual fees and the like, ask if they have any retention bonuses before closing. Make them work to survive the Cardpocalypse

Re: Too many credit cards:

Creditaddict — Thu, 10 Oct 2013 18:13:04 GMT

Chase will combine limits with a simple phone call.

Bank of America will combine

I believe Citi will combine

Store cards will not combine

American Express use to move limits and they still do "if" you qualify.... which wont be a hp or anything and id bet you would qualify since your history... so them too.

if you combine does that bring you down to a number you like or still need to close a bunch?

Re: Too many credit cards:

Anonymous — Thu, 10 Oct 2013 18:21:53 GMT

@Anonymous wrote:
Make a list (whether you share it with us is up to you, I'm sure the brilliant members of this board will have lots of opinions on what to keep/toss) of each of your cards and their limits, APR, etc. Go through each card and write down what you like about it, what you use it for, etc. Also write down negatives like annual fees or bad customer experiences. From here, you can get a feel for which cards you want to survive the Cardpocalypse, and which cards will go first in the shredder. Closing cards in and of itself will not hurt your credit score. The way that it can be a problem is that it reduces your total utilization, but that doesn't seem like a big issue for you. Just make sure to pay the cards down to 0 before clozing.

For example:
Walmart Store Card, Limit: $20K, APR 99999%
What I like: Easy limit increases, 0% APR deals
What I don't like: My APR the rest of the time, no rewards

Organize the list by lender, so you have an easy picture of which cards are from which lender. Now, you will be prepared to make phone calls and know which cards you want to keep and which you don't. Call each lender, and say I have A B C cards with X Y Z limits. I want to keep cards A and B but not C. Can I take the limit from C and put it on A and B (or whichever card you want it on). If they don't cooperate, give them the axe. With that score and history, you can be as choosy as you like.

Also, if there are any higher end cards with annual fees and the like, ask if they have any retention bonuses before closing. Make them work to survive the Cardpocalypse

This ^ +1 . I was about to write all that and now my fingers thank you lorek . As much advise as these boards can give you, only you know how you use those cards and which you can do without.

Re: Too many credit cards:

Anonymous — Thu, 10 Oct 2013 18:39:57 GMT

Hi:

I'm in the process of indexing all my credit cards. I'am going to list them according to lender groups I will also list, cl, apr, age of cards. I will also list all non credit cards, dept store cards, retail cards. I only carry a balance on one amex card, I will list the balances for all cards. I really want to get rid of most of these cards, without hurting myfico score. When done I will post the list, and wait for some expert advice on what to keep, merge cl lines, or just close.

Re: Too many credit cards:

fittiger — Thu, 10 Oct 2013 19:02:11 GMT

At 67 and with a FICO over 800, what is your concern about "hurting" your credit score. It's always nice to have a good credit score, but what is your concern about it dropping a little (which would only be minor and due to change in utilization if you just close some cards)? Anything over a 760 and you can get the best rates available for anything.

I think the bigger question is do you have any near term plans where you would need new credit....New mortgage, auto loan, personal loan? If not, you're worried way to much about a potential minimal score drop. Don't sweat it. Consolidate credit limits where you can, and close or sock drawer all cards you don't need.

If you want newer/better/different rewards cards, close some down and open new ones you are interested in. I currently have 8 cards and wouldn't want more than 10; I can't image trying to use and manage 35....it would be exhausting and it's really not necessary. I don't know your life situation, but I would venture that you could open and churn cards at this point in your life and earn some nice bonuses to use for traveling.

EDIT: Even if you cut out half of your total credit limit closing cards, you'd still have a $100K credit limit with a 4 - 10% UTIL.....which is totally fine and probably wouldn't affect your score more than 10 - 15 points, and only that much because its so high to start with.

Re: Too many credit cards:

Anonymous — Thu, 10 Oct 2013 22:47:36 GMT

@Anonymous wrote:
@Anonymous wrote:
Make a list (whether you share it with us is up to you, I'm sure the brilliant members of this board will have lots of opinions on what to keep/toss) of each of your cards and their limits, APR, etc. Go through each card and write down what you like about it, what you use it for, etc. Also write down negatives like annual fees or bad customer experiences. From here, you can get a feel for which cards you want to survive the Cardpocalypse, and which cards will go first in the shredder. Closing cards in and of itself will not hurt your credit score. The way that it can be a problem is that it reduces your total utilization, but that doesn't seem like a big issue for you. Just make sure to pay the cards down to 0 before clozing.

For example:
Walmart Store Card, Limit: $20K, APR 99999%
What I like: Easy limit increases, 0% APR deals
What I don't like: My APR the rest of the time, no rewards

Organize the list by lender, so you have an easy picture of which cards are from which lender. Now, you will be prepared to make phone calls and know which cards you want to keep and which you don't. Call each lender, and say I have A B C cards with X Y Z limits. I want to keep cards A and B but not C. Can I take the limit from C and put it on A and B (or whichever card you want it on). If they don't cooperate, give them the axe. With that score and history, you can be as choosy as you like.

Also, if there are any higher end cards with annual fees and the like, ask if they have any retention bonuses before closing. Make them work to survive the Cardpocalypse
This ^ +1 . I was about to write all that and now my fingers thank you lorek . As much advise as these boards can give you, only you know how you use those cards and which you can do without.

You're welcome

Re: Too many credit cards:

SnackTrader — Fri, 11 Oct 2013 09:23:39 GMT

Here:

This thread (linked below) should help explain why it won't immediately hurt your credit. I think you'll be fine, even 10 years down the road if you cut 50% or more of these cards. Your credit score will stay well above 750 just due to your lack of baddies and AAoA even if your utilization goes up a few points. And 10 years from now I doubt you will lose more than a few years in AAoA. You will be fine, and I congratulate you on such responsible credit use.

http://ficoforums.myfico.com/t5/Credit-Cards/Closing-Credit-Cards/td-p/347190