topic Re: Have You Ever Closed a Hight Limit Card? in Credit Cards

Have You Ever Closed a High-Limit Card?

changingmantra2 — Thu, 24 Apr 2014 03:39:14 GMT

Hello All -

What was the highest limit of a card you closed? Why did you choose to close a card with a hight CL?

Re: Have You Ever Closed a Hight Limit Card?

eagle2013 — Thu, 24 Apr 2014 03:29:10 GMT

@changingmantra2 wrote:
Hello All -

What was the highest limit of a card you closed? Why did you choose to close a card with a hight CL?

Not me personally, but I have thought quite frequently about axing my useless Wells Fargo limit down.

Re: Have You Ever Closed a Hight Limit Card?

Anonymous — Thu, 24 Apr 2014 04:17:01 GMT

I closed a $30K Citi AA MC. The AF was quite high for then, around $80, they wouldn't reduce the APR and I kept my AA Visa, so didn't need both. I have closed several in the 15-20K range, always because to me the AF wasn't worth it.

Re: Have You Ever Closed a High-Limit Card?

SunriseEarth — Thu, 24 Apr 2014 04:56:05 GMT

@changingmantra2 wrote:
Hello All -

What was the highest limit of a card you closed? Why did you choose to close a card with a hight CL?

The only CC I've closed of my own volition since BK was my CreditOne, with a $950 CL. I'm debating closing my Merrick some time in the few months (current CL is $1200). So yeah, I haven't had that issue just yet.

Re: Have You Ever Closed a High-Limit Card?

Pat94108 — Thu, 24 Apr 2014 04:58:55 GMT

Yes, I closed a Amex Blue Sky a few years ago with a CL of 15k. I was unemployed so wanted to make sure I wasn't going to use it.

Re: Have You Ever Closed a High-Limit Card?

DigitalArk — Thu, 24 Apr 2014 06:10:16 GMT

I am about to close my 18.5K NFCU cashRewards...still thinking about it...

Re: Have You Ever Closed a High-Limit Card?

eddie84 — Thu, 24 Apr 2014 06:36:05 GMT

@changingmantra2 wrote:
What was the highest limit of a card you closed?

Well, it was the Beaver card ($12k) and they closed it for me.

Re: Have You Ever Closed a High-Limit Card?

acb5456 — Thu, 24 Apr 2014 13:36:22 GMT

I closed my $10k Merrill+ card a short while back. The rewards structure wasn't anything special and I don't like having too many credit card accounts!

Re: Have You Ever Closed a High-Limit Card?

Jlu — Thu, 24 Apr 2014 14:17:03 GMT

I'm considering closing my CSP for AF-reduction purposes, but of course I'd be transferring the entire limit over to my no-AF Freedom card since Chase is cool like that.

Thus far I've closed a $300 First Premier Card.. didn't hurt too much to see that one go

Re: Have You Ever Closed a High-Limit Card?

youngandcreditwrthy — Thu, 24 Apr 2014 14:20:17 GMT

The highest I've closed are:

$15k Lowe's card (due to no use! replaced it with a higher limit card down the road)

$6.5k JCP Card ( I never shop there!)

$5k C1 Venture Visa Siggy( Crapital one sucks and they wouldn't lower my apr or increase my cl)

I more than opened enough accounts to replace the credit lines on those though. I've opened prob $50-60k in new credit lines since I closed those ones. GECRB cards are really good to build high lines.

Re: Have You Ever Closed a High-Limit Card?

GeneralCucumbre — Thu, 24 Apr 2014 14:56:42 GMT

Yes, I've closed several. Most recently:

USAA Platinum Visa - $16,000 limit
Citi ThankYou Premier Visa - $12,500 limit
AMEX Blue Cash Everyday - $8,300 limit
Edward Jones World MasterCard - $10,000 limit (Closed about 8-10 months ago)

All of these cards were essentially useless to me, and when a card becomes useless to me I do not "sock-drawer" it as many others here do...I close it. The Citi ThankYou Premier card had an annual fee which could not be justified and the ThankYou points system is terrible compared to Chase's Ultimate Rewards. I do still have my ThankYou Preferred card as you can see in my signature but I only kept that because it has a good long history.

Re: Have You Ever Closed a High-Limit Card?

thelethargicage — Thu, 24 Apr 2014 15:56:15 GMT

I closed my CSP with a $11K CL. After the signup bonus, that card was useless to me.

Re: Have You Ever Closed a High-Limit Card?

celluloid17 — Thu, 24 Apr 2014 17:12:01 GMT

Has anyone ever closed their oldest high limit card? If so, any impact on your scores?

Re: Have You Ever Closed a High-Limit Card?

1_2 — Thu, 24 Apr 2014 17:28:47 GMT

I havent ever closed a high limit card and other than fee's, I can't imagine why anyone would. There must be a reason but I dont understand. Doesn't that hurt your scores?

I do plan on closing all of my rebuilders as soon as they stop waiving the fee's. My oldest card and the highest limit on my rebuilders is a Captial One, secured. 1000.00. Then I have a Capital One that was Orchard with a 500.00 limit. I sent capital one's executive office asking them to either cancel both those cards or waive the fee's and they never answered me but I didnt get charges on them this year...I never use either any more.

I have a Frist Premier and I think the limit on it now is 750.00 but again, I mailed them and asked them to cancel or waive, they waived the fees. Same with Credit One, 950.00 limit.

The highest limit I have on any of my prime cards is 6,500.00. I'm still small potatoes compaired to most of the other posters limits. I really am interested in why cancelling high limit cards is a good idea. I promise I'm not trying to be a smart ass.

Re: Have You Ever Closed a High-Limit Card?

takeshi74 — Thu, 24 Apr 2014 17:33:48 GMT

@changingmantra2 wrote:
What was the highest limit of a card you closed? Why did you choose to close a card with a hight CL?

$2,000. It wasn't high (which is a subjective and relative word anyway).

@celluloid17 wrote:
Has anyone ever closed their oldest high limit card? If so, any impact on your scores?

Addressed in the Closing Credit CArds sticky:

http://ficoforums.myfico.com/t5/Credit-Cards/Closing-Credit-Cards/m-p/347190?jump=true

AAoA isn't immediately impacted. Utilization, however, is.

@1_2 wrote:
I havent ever closed a high limit card and other than fee's, I can't imagine why anyone would. There must be a reason but I dont understand. Doesn't that hurt your scores?

It can (see linked sticky above) but there's no single outcome that applies to all situations. Credit varies from person to person. One might see a significant drop. One might see an insignificant drop . One might not see any impact. Whether to close an account or not is a call that each has to make. No one option works best for everyone and there are many possible reasons.

Re: Have You Ever Closed a High-Limit Card?

Anonymous — Thu, 24 Apr 2014 17:33:39 GMT

@1_2 wrote:
I havent ever closed a high limit card and other than fee's, I can't imagine why anyone would. There must be a reason but I dont understand. Doesn't that hurt your scores?

I do plan on closing all of my rebuilders as soon as they stop waiving the fee's. My oldest card and the highest limit on my rebuilders is a Captial One, secured. 1000.00. Then I have a Capital One that was Orchard with a 500.00 limit. I sent capital one's executive office asking them to either cancel both those cards or waive the fee's and they never answered me but I didnt get charges on them this year...I never use either any more.
I have a Frist Premier and I think the limit on it now is 750.00 but again, I mailed them and asked them to cancel or waive, they waived the fees. Same with Credit One, 950.00 limit.

The highest limit I have on any of my prime cards is 6,500.00. I'm still small potatoes compaired to most of the other posters limits. I really am interested in why cancelling high limit cards is a good idea. I promise I'm not trying to be a smart ass.

OK, the uninteresting case is cards with AFs that are no longer of value. General agreement worth closing those, with some differences about how much effort you should put in (call to attempt to get the fee waived, downgrade the card, get the CL moved to another card etc).

In the other case there are two schools of thought:

1) It does no harm, so sock drawer it. If you want to keep it alive, put some small charges on, maybe monthly recurring ones. It might grow and might help util

2) It does no good, so close it. Don't want to keep track, advantages are minimal, potential for fraud or issuer to add fees without me noticing etc. Closed accounts report for 10 years anyway.

Generally, personal decision. Often the impact one way or the other is very small.

Re: Have You Ever Closed a High-Limit Card?

parakleet — Thu, 24 Apr 2014 17:38:10 GMT

@1_2 wrote:
I havent ever closed a high limit card and other than fee's, I can't imagine why anyone would. There must be a reason but I dont understand. Doesn't that hurt your scores?

I do plan on closing all of my rebuilders as soon as they stop waiving the fee's. My oldest card and the highest limit on my rebuilders is a Captial One, secured. 1000.00. Then I have a Capital One that was Orchard with a 500.00 limit. I sent capital one's executive office asking them to either cancel both those cards or waive the fee's and they never answered me but I didnt get charges on them this year...I never use either any more.
I have a Frist Premier and I think the limit on it now is 750.00 but again, I mailed them and asked them to cancel or waive, they waived the fees. Same with Credit One, 950.00 limit.

The highest limit I have on any of my prime cards is 6,500.00. I'm still small potatoes compaired to most of the other posters limits. I really am interested in why cancelling high limit cards is a good idea. I promise I'm not trying to be a smart ass.

Just because a card has a high cli isn't a reason to keep it if you have no other use for it. Closing a card can affect your score if it impacts your utilization. I have two Citi AAdvantage cards with $6.5k and $6k CL and I will most likely get rid of one of them when I pay down my debt since I have absolutely no use for them other than for utilization purposes. And neither of the cards have AFs. But even for cards that you can SD, that's still mental energy you have to exert to keep accounting for them, which may not be a worthwhile way to spend their time for some.

Re: Have You Ever Closed a High-Limit Card?

1_2 — Thu, 24 Apr 2014 17:58:32 GMT

That makes sense. I hadn't ever thought of it that way. Thank you for answering. I think it would be nice to be able to cancel a very high limit card and not have to worry about the impact on your score. I'm not in that league yet...but hopefully someday I will be, lol.

Re: Have You Ever Closed a High-Limit Card?

Kenny — Thu, 24 Apr 2014 18:46:23 GMT

My answer: not really. I think I only have a couple of closed cards on my profile: 3.5k, 2k, 500, 500.

Re: Have You Ever Closed a High-Limit Card?

hot4u — Thu, 24 Apr 2014 18:48:44 GMT

$5,000 DCU since I didn't use it and was not my oldest.Wasn't wooried about AAOA.

Was not easy choice at time...... I felt I needed to thin my lines down.... they were my first at that limit. And I belive it's HP Cli in future..