topic Re: Should I close my BuyPower Card? in General Credit Topics

Should I close my BuyPower Card?

bustinloose82 — Tue, 15 Aug 2017 15:59:00 GMT

This card seems to be completely worthless. I started with a $500 limit and have never had an increase in 2 years. It's been a zero balance for at least a year. Will it significantly damage my score to close a $500 card that is unused? Is having such a low limit on on my account hurting anyway?

My current cards:

Nordstrom Rewards Visa: $7,000 ($115 balance)

Capital One Platinum: $3,900 ($46 balance)

Capital One Platinum: $3,500 ($42 balance)

Bayport Credit Union: $7,500 ($7,100 balance)

Barclay Card: $3,190 ($2,800 balance)

American Express Delta: $2,000 ($1,401 balance)

American Express EveryDay: $1,000 ($87 balance)

Macy's: $3,500 ($1,100 balance)

JC Penney: $800 ($27 balance)

GM BuyPower Card: $500 (0 balance)

Re: Should I close my BuyPower Card?

medicgrrl — Tue, 15 Aug 2017 16:00:59 GMT

Considering your balances & utilization, I would leave it open until you start paying down the other cards.

Re: Should I close my BuyPower Card?

bustinloose82 — Tue, 15 Aug 2017 16:20:13 GMT

@medicgrrl wrote:
Considering your balances & utilization, I would leave it open until you start paying down the other cards.

You should've seen my utilization six months ago!

Re: Should I close my BuyPower Card?

Anonymous — Tue, 15 Aug 2017 16:55:33 GMT

I feel ya! I was at 97% utilization 6 months ago, I changed jobs for about a 40% income boost and have payed myself down to almost 30%.

Replying to the topic at hand though, I'd consider the age of the account and possibly leave it open if its within your average or on the older side of things. Closing a longstanding account can potentially lower your average age by some calculations.

Re: Should I close my BuyPower Card?

bustinloose82 — Tue, 15 Aug 2017 19:43:48 GMT

Update: Just got approved for a CLI with JC Penney. That will help with utilization. $3,500 now instead of $800. Now I wish I had tried for $5,000.

Re: Should I close my BuyPower Card?

medicgrrl — Tue, 15 Aug 2017 19:59:51 GMT

Congrats on the CLI. That will definitely help with overall utilization, but you will want to start bringing the individual card utilization down.... preferably below 85% to start.

Re: Should I close my BuyPower Card?

AverageJoesCredit — Tue, 15 Aug 2017 22:23:24 GMT

Closing a card will not damage your score. Card will remail up to 10 years or more on your reports. The only thing affected is your utilization. Your Pennies increase should allow you to close it more comfortably if youd like. Definitrly work on your utilization though

Re: Should I close my BuyPower Card?

HeavenOhio — Wed, 16 Aug 2017 12:59:44 GMT

@bustinloose82 wrote:
This card seems to be completely worthless. I started with a $500 limit and have never had an increase in 2 years. It's been a zero balance for at least a year. Will it significantly damage my score to close a $500 card that is unused? Is having such a low limit on on my account hurting anyway?

My current cards:

Nordstrom Rewards Visa: $7,000 ($115 balance)
Capital One Platinum: $3,900 ($46 balance)
Capital One Platinum: $3,500 ($42 balance)
Bayport Credit Union: $7,500 ($7,100 balance)
Barclay Card: $3,190 ($2,800 balance)
American Express Delta: $2,000 ($1,401 balance)
American Express EveryDay: $1,000 ($87 balance)
Macy's: $3,500 ($1,100 balance)
JC Penney: $800 ($27 balance)
GM BuyPower Card: $500 (0 balance)

Low limits in and of themselves don't hurt FICO scores.

If you were to close your card, your utilization would go down from 36% to 35%. That's not a big deal. Given that the card is only two years old, account age isn't a biggie either.

Re: Should I close my BuyPower Card?

bustinloose82 — Wed, 16 Aug 2017 13:15:38 GMT

@medicgrrl wrote:
Congrats on the CLI. That will definitely help with overall utilization, but you will want to start bringing the individual card utilization down.... preferably below 85% to start.

Yes, that's what I've been doing. With the exception of Macy's, JC Penney and Nordstrom, every last one of those cards were maxed out six months ago.

Re: Should I close my BuyPower Card?

medicgrrl — Wed, 16 Aug 2017 17:24:14 GMT

You've done awesome on paying those down!

Re: Should I close my BuyPower Card?

rmduhon — Wed, 16 Aug 2017 21:45:54 GMT

For a quick score boost, pay off both Cap1 cards, Amex ED, Penny's, and Nordstrom. Not counting the BuyPower card that will give you 5 cards reporting a zero balance and 4 reporting a balance. That will eliminate the penalty for having over half of your cards reporting a balance.

Re: Should I close my BuyPower Card?

bustinloose82 — Sat, 19 Aug 2017 09:43:19 GMT

@rmduhon wrote:
For a quick score boost, pay off both Cap1 cards, Amex ED, Penny's, and Nordstrom. Not counting the BuyPower card that will give you 5 cards reporting a zero balance and 4 reporting a balance. That will eliminate the penalty for having over half of your cards reporting a balance.

Thanks for the quick tip! I'll do that today. I paid of Cap1 cards, but was interest accrued. Good call. I'll pay those off.

Re: Should I close my BuyPower Card?

bustinloose82 — Sat, 19 Aug 2017 14:52:46 GMT

@rmduhon wrote:
For a quick score boost, pay off both Cap1 cards, Amex ED, Penny's, and Nordstrom. Not counting the BuyPower card that will give you 5 cards reporting a zero balance and 4 reporting a balance. That will eliminate the penalty for having over half of your cards reporting a balance.

Back to back approvals. First in 18 months. I think I'm going to rest in the garden for a few months.