topic Re: closing fee cards in Understanding FICO® Scoring

closing fee cards

granny031350 — Fri, 06 Jun 2008 16:59:47 GMT

This am I closed 2 of my fee cards, Tribute and Cortrust. I have decided that since I really can't do anything credit wise until after January 09 due to my Chapter 13 Bk (need discharge to go to CU and ask for cc etc or really apply for any more new credit) that I should use these next few months to set myself up for 09.

I recently got the B of A secured card for 300.00 and that is the card I am going to really concentrate on, along with my Hooters Card and my Orchard Card. None of those cards have monthly fees for online payments or for just having the card. (AF are 29.00 HSBC/39.00 Hooters so reasonable)

I do have Target, Kays, Best Buy (store card) and JC Penny, so all set with store cards.

But I didn't close my Credit One. I just opened this card in January. But it is a fee card. Whether my scores go up or down for a few months is of little consequence because I am stuck in neutral until for sure January 09, probably February and by then I figure my utilization will be down.

So would the experts here go ahead and close the credit one card also?

My oldest account is 10 years and my average age is 4 years and 4 months (really been 100 percent perfect since August of 2005)

Re: closing fee cards

Anonymous — Fri, 06 Jun 2008 17:03:34 GMT

Get the UTL down then close the "crap" cards-

Re: closing fee cards

RobertEG — Sat, 07 Jun 2008 03:58:08 GMT

Closing the CredOne account will avoid annual fees, and will have no affect on your avg age as long as it continues to appear in your CR, which is normally ten years from closing date. All you will lose right now is its CL in your %util calculation.

Since you are not planning to app for new credit any time soon, this is a good example of putting finanacial planning above FICO planning. I would ditch it now.

Re: closing fee cards

Anonymous — Sat, 07 Jun 2008 13:54:38 GMT

I vote for ditch it - try to get the BOA to go unsecured and concentrate on increasing that credit line, and if you ever need new credit at that point you will have a prime card with a respectable credit limit on your report and another prime lender will be willing to do the same. Its time for you to be picky with them instead of them being picky with you.