topic Re: Closing All Rebuilder Cards in Credit Cards

Closing All Rebuilder Cards

keithbward — Tue, 12 Aug 2014 16:44:17 GMT

I've had significant progress in the last 7 months with my credit profile. Huge thanks as always to all of you here for your wisdom and sharing your stories and experiences. That information has really helped me create a credit profile I can be proud of as well as look forward to building even more. My question for today is about closing my rebuilder cards and cards with "toy" limits as I've seen around here. Is there a certain procedure I should do in closing them? Can I close them all at the same time? Wait til there's a solid year of reporting or 6 months? Is closing too many at one time frowned upon by creditors who I may apply for in the future? Thanks for your responses.

Re: Closing All Rebuilder Cards

Creditaddict — Tue, 12 Aug 2014 16:50:32 GMT

the only issue if any with closing credit cards is you loose the availabe credit thus causing your utilization across the board to go up... if your balances are in check across the board than take this step with stride and CLOSE them all down that are rebuilders and costing you money.

Re: Closing All Rebuilder Cards

juggalo9er — Tue, 12 Aug 2014 17:00:46 GMT

@Creditaddict wrote:
the only issue if any with closing credit cards is you loose the availabe credit thus causing your utilization across the board to go up... if your balances are in check across the board than take this step with stride and CLOSE them all down that are rebuilders and costing you money.

+1 i would only close if they charge a fee

Re: Closing All Rebuilder Cards

keithbward — Tue, 12 Aug 2014 17:52:50 GMT

@Creditaddict wrote:
the only issue if any with closing credit cards is you loose the availabe credit thus causing your utilization across the board to go up... if your balances are in check across the board than take this step with stride and CLOSE them all down that are rebuilders and costing you money.

The available credit is laughable to say the least. I've been approved for one card that would cover those "losses". My utilization is always between 2-5% monthly so even a jump would not even be close to the 25-30% I just want to make sure I don't close anything too early and have it be viewed as negative. My rebuilding timeframe was a whole lot shorter than I thought it would be and I'm thankful for that. I just want to make sure that having a card open for 3 months and then closed isn't viewed wrong by potenetial creditors in the future. Most of them have 6 months, but I was wondering if I should wait for a year of reporting. The cards are in a lock box and currently $0 balance and not being used at all.

Re: Closing All Rebuilder Cards

heyarrnold — Tue, 12 Aug 2014 17:59:28 GMT

@keithbward wrote:
@Creditaddict wrote:
the only issue if any with closing credit cards is you loose the availabe credit thus causing your utilization across the board to go up... if your balances are in check across the board than take this step with stride and CLOSE them all down that are rebuilders and costing you money.
The available credit is laughable to say the least. I've been approved for one card that would cover those "losses". My utilization is always between 2-5% monthly so even a jump would not even be close to the 25-30% I just want to make sure I don't close anything too early and have it be viewed as negative. My rebuilding timeframe was a whole lot shorter than I thought it would be and I'm thankful for that. I just want to make sure that having a card open for 3 months and then closed isn't viewed wrong by potenetial creditors in the future. Most of them have 6 months, but I was wondering if I should wait for a year of reporting. The cards are in a lock box and currently $0 balance and not being used at all.

If they have fees, close them. Otherwise, leave them open. I had my starter cards open for 6 months and then closed them all off once I was approved by a prime lender. I haven't looked back since, and there have been no adverse effects.

Re: Closing All Rebuilder Cards

wacdenney — Tue, 12 Aug 2014 18:21:56 GMT

I'm in the close em camp. Once they serve their purpose I say good ridance!

My score has actually gone up after the last 2 I closed. No idea why.

Re: Closing All Rebuilder Cards

keithbward — Tue, 12 Aug 2014 18:29:15 GMT

I see the consensus is kick them to the curb and I'm perfectly fine with that. I was only concerned about any adverse affects of closing multiple all at once. They have definitely served their purpose, and in a whole lot faster timeframe than I originally expected, but I have better cards and limits. The only secured card I'll continue to carry is my DiscoverIT card since it will graduate next year and my profile will have matured so much.

Re: Closing All Rebuilder Cards

Closingracer99 — Tue, 12 Aug 2014 19:58:53 GMT

@Creditaddict wrote:
the only issue if any with closing credit cards is you loose the availabe credit thus causing your utilization across the board to go up... if your balances are in check across the board than take this step with stride and CLOSE them all down that are rebuilders and costing you money.

Also I wouldn't close them unles you got card(s) to repalce them

Re: Closing All Rebuilder Cards

d170 — Tue, 12 Aug 2014 20:16:18 GMT

When I closed my rebuilders. I got approved for new cards. So I closed FP visa got a new card. FP limit 350 rapid rewards 8k. FP MasterCard closed 550 opened Barclays and Amex 2.5k limit. Small dip but I bounced back. This was down in June/July and all cards are reporting. I started off in the mid 500's this year and am approaching 750+ across the board. YMMV

Re: Closing All Rebuilder Cards

ScarletFever — Wed, 13 Aug 2014 00:51:58 GMT

I closed FP, Firestone, and 1st Savings within last couple years. I did so only after I had prime cards with decent credit lines and low util. Paying fees was not worth it, and the psychological boost was helpful having struggled for years. You will keep positive entries.

Re: Closing All Rebuilder Cards

ScarletFever — Wed, 13 Aug 2014 00:53:39 GMT

Btw, my scores changed little, though noted on credit reports as potentially negative.

Re: Closing All Rebuilder Cards

SevenNEW — Wed, 13 Aug 2014 01:20:49 GMT

Just my two cents, but I would close the secured cards, keep the ones with AF open until the AF is due, and SD the ones w/o AF.

But I think we are talking about philosophy more than real strategy. As long as you PIF before closing them, they will remain in your report for 10 years as accounts in good standing.

Re: Closing All Rebuilder Cards

OHWWCB — Wed, 13 Aug 2014 02:09:37 GMT

The day after getting approved for my Chase Sapphire Preferred, Chase Freedom and Discover It, I closed my CreditOne and Kohls cards. CreditOne I had for 2.5 years but they charge AF and they would only waive it for 6 months and make me call back again AND they wouldn't give me a CLI on my joke $600 limit. Kohls I had only since January but they also wouldn't give me a CLI so I canceled them too. I probably won't close my Victoria's Secret card because it is actually useful to me a handful of times a year and they've been increasing my CL pretty steadily without my asking for it.

Good luck and congrats on your approvals!

Re: Closing All Rebuilder Cards

keithbward — Wed, 13 Aug 2014 02:23:49 GMT

Closed all my rebuilder cards and some comenity store cards that serve no real purpose anymore. I have to call tomorrow to close 2 more and 1 more after my payment posts to $0 it out. I have some pretty good cards and only have my eye on 2-3 more prime cards next year this time when my profile looks a lot more appealing and low risk. The sadness in some of the customer service agents was pretty hilarious and most said they would waive the AF but no reason to keep them around cause they offer no real benefit to me. I have cards that not only cover the "lost" available credit but will help my utilization 3x over. All will be reported as closed at consumers request and paid as agreed while open.

Re: Closing All Rebuilder Cards

jetsfan2013 — Wed, 13 Aug 2014 16:13:52 GMT

I recently had to make this decision, and opted to keep mine open for one more year. the only card I am closing is the First National, which has a 75 AF and wont waive it.

Re: Closing All Rebuilder Cards

gamegrrl — Wed, 13 Aug 2014 16:24:57 GMT

Back in my dark credit days, I had two CapOne cards and two Orchard Bank cards. I needed them for renting cars and booking flights, etc. for my business. I opened all of them in 2002 or thereabouts. All these years, I have NEVER made a late payment. Ever. And except for one brief time several years ago, I paid the balance off every month.

In all that time, I only got a CLI on two of those cards, and the increases were laughable. Over ALL FOUR CARDS, my entire credit lines equalled less than $4K. And all four cards charge an annual fee.

Last October, I got my first "Big Girl Card": A Visa Signature card from NFCU with a CL of $25K. I recently got a DiscoverIT card with a $7K limit.

Since October 2013, I have been closing my old, low-limit, annual fee cards as soon as the annual fee rolls around. I just closed the last one this month. AND IT FEELS AWESOME!

So yeah, I'm in the "close those suckers" camp, provided you have credit lines in place to make up for them. It sounds like you do, so go for it!

Re: Closing All Rebuilder Cards

keithbward — Wed, 13 Aug 2014 19:49:32 GMT

And they are all gone...All balances at $0 and accounts closed. Won't say that I'm going to miss them one bit.

Re: Closing All Rebuilder Cards

SOGGIE — Fri, 15 Aug 2014 17:17:18 GMT

I would certainly close any rebulider cards that have annual fees. And should you decide to close any accounts, always make the request it in writing, and be sure to request that the creditor report the account as "Account Closed at Consumer's Request." I hope this helps.