topic Re: Closing multiple credit card accounts? in Credit Cards

Closing multiple credit card accounts?

JMMD — Fri, 18 Apr 2014 18:03:57 GMT

My husband and I filed BK in 2011, were discharged Feb 2012. We are building credit with the hope of buying a home soon. We hoped this March but reality is it will probably be April 2015. During the rebuild process we opened various cards. I am wondering if we shoudl close the ones we aren't using and instead try to raise the CL on the ones we do use? However, I am worried how this might affect my credit history age. These are the cards we have attained since March 2013. I marked which ones we use. We always PIF.

Walmart $600 mine-use often)

Walmart $400 (his use often)

UNsecured visa $500( joint-use this card the most) ( was secured but switched to UN secured last month)

Amazon $700( mine never use)

Amazon $600 ( his use often) b/c prime account)

JCPenny $500 ( mine never use)

Dressbarn $500 ( mine never use)

Lowes $300 ( mine-brand new)

Paypal $600 ( mine use rarely)

I appreciate any advice!
Thanks!

Re: Closing multiple credit card accounts?

SunriseEarth — Fri, 18 Apr 2014 18:09:56 GMT

@JMMD wrote:
My husband and I filed BK in 2011, were discharged Feb 2012. We are building credit with the hope of buying a home soon. We hoped this March but reality is it will probably be April 2015. During the rebuild process we opened various cards. I am wondering if we shoudl close the ones we aren't using and instead try to raise the CL on the ones we do use? However, I am worried how this might affect my credit history age. These are the cards we have attained since March 2013. I marked which ones we use. We always PIF.

Walmart $600 mine-use often)
Walmart $400 (his use often)
UNsecured visa $500( joint) ( was secured but switched to UN secured last month)
Amazon $700( mine never use)
Amazon $600 ( his use often) b/c prime account)
JCPenny $500 ( mine never use)
Dressbarn $500 ( mine never use)
Lowes $300 ( mine-brand new)

I appreciate any advice!
Thanks!

Closing accounts won't affect your AAoA until the reported TLs fall off your CRs (that takes ~10 years). There are some that suggest keeping accounts open for at least 2 years, so that way the accounts are no longer considered "new." Some also feel that there's no reason to cancel accounts, unless they are costing money. Putting cards in the SD requires some maintenance. Some don't mind this, but some do. It's really a matter of personal choice.

BTW, if you need use for your JCPenney card, both CVS and Rite Aid accept the JCP card as payment. I use mine a few times a month at those two stores.

Re: Closing multiple credit card accounts?

Anonymous — Fri, 18 Apr 2014 18:18:25 GMT

Closing cards has no immediate effect on AAoA. The effect comes later (like 10 years), when the closed account drops off your reports. At that time, you lose the accumulated age for the particular account, and the effect on AAoA would depend on how many accounts you have at that point.

Closing cards will reduce your overall limits. If your utilization is low, this may not matter. If you have significant utilization, this might be a big deal.

If thinking about a mortgage, I'd suggest picking around 3-5 accounts to focus on and build up in whatever way you can.

You might also talk to some local CUs and see what they can do for you in the long term, re getting higher limits.

You can also buy your way to higher limits by putting a large deposit on a secured card.

Re: Closing multiple credit card accounts?

JMMD — Fri, 18 Apr 2014 18:18:13 GMT

Thank you both. I think I am going to close the Lowes, JCPenny, Dressbarn My amazon and focus on building the other cards up instead. I appreciate the help!

Re: Closing multiple credit card accounts?

BootStraps — Fri, 18 Apr 2014 19:04:46 GMT

Unless they have changed the policy, you can have up to four people at the same address using the same Amazon Prime. That means that you should be able to link the prime to your Amazon account so you can use your Amazon card.

He has to invite you if I remember correctly.

Re: Closing multiple credit card accounts?

tattooedhusker — Fri, 18 Apr 2014 19:08:50 GMT

@JMMD wrote:
Thank you both. I think I am going to close the Lowes, JCPenny, Dressbarn My amazon and focus on building the other cards up instead. I appreciate the help!

I would consider keeping the Lowes card open, it is a pretty quick grower and could be the bridge to higher limits down the line

Re: Closing multiple credit card accounts?

BootStraps — Fri, 18 Apr 2014 19:13:12 GMT

@tattooedhusker wrote:
@JMMD wrote:
Thank you both. I think I am going to close the Lowes, JCPenny, Dressbarn My amazon and focus on building the other cards up instead. I appreciate the help!
I would consider keeping the Lowes card open, it is a pretty quick grower and could be the bridge to higher limits down the line

Home improvement store cards are also very useful when you own a house...

Re: Closing multiple credit card accounts?

JMMD — Fri, 18 Apr 2014 19:15:13 GMT

BootStraps wrote:

tattooedhusker wrote:

JMMD wrote:

Thank you both. I think I am going to close the Lowes, JCPenny, Dressbarn My amazon and focus on building the other cards up instead. I appreciate the help!

I would consider keeping the Lowes card open, it is a pretty quick grower and could be the bridge to higher limits down the line

Home improvement store cards are also very useful when you own a house...

I did close it for right now. I am going to try to use the visa more often and if we need anything at Lowes, I can just use that. I'd love to see thie visa get a CLI as it's through the bank we hope to use when we do buy a home.

Re: Closing multiple credit card accounts?

SunriseEarth — Fri, 18 Apr 2014 19:48:48 GMT

@JMMD wrote:
@BootStraps wrote:
@tattooedhusker wrote:
@JMMD wrote:
Thank you both. I think I am going to close the Lowes, JCPenny, Dressbarn My amazon and focus on building the other cards up instead. I appreciate the help!
I would consider keeping the Lowes card open, it is a pretty quick grower and could be the bridge to higher limits down the line
+1

Home improvement store cards are also very useful when you own a house...
I did close it for right now. I am going to try to use the visa more often and if we need anything at Lowes, I can just use that. I'd love to see thie visa get a CLI as it's through the bank we hope to use when we do buy a home.

Yeah, I'd agree closing that one was a mistake. Doesn't Lowes have a 5% discount for using their card? That would match or beat most cash back cards.

Re: Closing multiple credit card accounts?

JMMD — Fri, 18 Apr 2014 20:00:09 GMT

@SunriseEarth wrote:
@JMMD wrote:
@BootStraps wrote:
@tattooedhusker wrote:
@JMMD wrote:
Thank you both. I think I am going to close the Lowes, JCPenny, Dressbarn My amazon and focus on building the other cards up instead. I appreciate the help!
I would consider keeping the Lowes card open, it is a pretty quick grower and could be the bridge to higher limits down the line
+1

Home improvement store cards are also very useful when you own a house...
I did close it for right now. I am going to try to use the visa more often and if we need anything at Lowes, I can just use that. I'd love to see thie visa get a CLI as it's through the bank we hope to use when we do buy a home.
Yeah, I'd agree closing that one was a mistake. Doesn't Lowes have a 5% discount for using their card? That would match or beat most cash back cards.

Oh shoot.

Re: Closing multiple credit card accounts?

BigBS — Fri, 18 Apr 2014 20:04:18 GMT

Yeah, I never really considered the Lowes or Home Depot cards much, but since I spend lots of time in there for things around house/yard probably a good one to have. Also, have seen how fast they grow and the different 0% offers they have I would definitely keep it.

Re: Closing multiple credit card accounts?

tattooedhusker — Fri, 18 Apr 2014 20:05:12 GMT

@JMMD wrote:
@SunriseEarth wrote:
@JMMD wrote:
@BootStraps wrote:
@tattooedhusker wrote:
@JMMD wrote:
Thank you both. I think I am going to close the Lowes, JCPenny, Dressbarn My amazon and focus on building the other cards up instead. I appreciate the help!
I would consider keeping the Lowes card open, it is a pretty quick grower and could be the bridge to higher limits down the line
+1

Home improvement store cards are also very useful when you own a house...
I did close it for right now. I am going to try to use the visa more often and if we need anything at Lowes, I can just use that. I'd love to see thie visa get a CLI as it's through the bank we hope to use when we do buy a home.
Yeah, I'd agree closing that one was a mistake. Doesn't Lowes have a 5% discount for using their card? That would match or beat most cash back cards.
Oh shoot.

5% off or special financing options. I would call and see if you could get the card reopened.

Re: Closing multiple credit card accounts?

tattooedhusker — Fri, 18 Apr 2014 20:06:36 GMT

@BigBS wrote:
Yeah, I never really considered the Lowes or Home Depot cards much, but since I spend lots of time in there for things around house/yard probably a good one to have. Also, have seen how fast they grow and the different 0% offers they have I would definitely keep it.

0% financing helped me tremendously when I put in my hardwood floors

Re: Closing multiple credit card accounts?

BigBS — Fri, 18 Apr 2014 20:12:25 GMT

@tattooedhusker wrote:
@BigBS wrote:
Yeah, I never really considered the Lowes or Home Depot cards much, but since I spend lots of time in there for things around house/yard probably a good one to have. Also, have seen how fast they grow and the different 0% offers they have I would definitely keep it.
0% financing helped me tremendously when I put in my hardwood floors

I'm having a new wood fence put up around my yard and considered leaving the garden to get one of their cards for the 0% deals.

Re: Closing multiple credit card accounts?

tattooedhusker — Fri, 18 Apr 2014 20:16:01 GMT

@BigBS wrote:
@tattooedhusker wrote:
@BigBS wrote:
Yeah, I never really considered the Lowes or Home Depot cards much, but since I spend lots of time in there for things around house/yard probably a good one to have. Also, have seen how fast they grow and the different 0% offers they have I would definitely keep it.
0% financing helped me tremendously when I put in my hardwood floors
I'm having a new wood fence put up around my yard and considered leaving the garden to get one of their cards for the 0% deals.

I would say that this card is almost a "must have" for homeowners

Re: Closing multiple credit card accounts?

SunriseEarth — Fri, 18 Apr 2014 20:17:58 GMT

@JMMD wrote:
@SunriseEarth wrote:
@JMMD wrote:
@BootStraps wrote:
@tattooedhusker wrote:
@JMMD wrote:
Thank you both. I think I am going to close the Lowes, JCPenny, Dressbarn My amazon and focus on building the other cards up instead. I appreciate the help!
I would consider keeping the Lowes card open, it is a pretty quick grower and could be the bridge to higher limits down the line
+1

Home improvement store cards are also very useful when you own a house...
I did close it for right now. I am going to try to use the visa more often and if we need anything at Lowes, I can just use that. I'd love to see thie visa get a CLI as it's through the bank we hope to use when we do buy a home.
Yeah, I'd agree closing that one was a mistake. Doesn't Lowes have a 5% discount for using their card? That would match or beat most cash back cards.
Oh shoot.

I'd call back on that one and see if you can undo the request to close the account.

Re: Closing multiple credit card accounts?

sunni_one — Fri, 18 Apr 2014 20:27:48 GMT

+1 on the Lowes, but I would also consider keeping the JCP account. They have nice things for the home and the card will definitely grow with you. Mine went from $1,900 to $7,500 in 5 years with just auto CLIs.

I wish that I had kept a bunch of the accounts I closed 10 years ago after paying them off. The benefit of those aged accounts would really benefit me now. In a few months, they will be dropping off of my report , so I may lose some points as a result. When my car loan dropped off (after 10 years reporting as a paid loan) my score dropped 30 points, ouch...that hurt!