0% APR ending...keep cards open or close?

mjr2444 · ‎01-28-2016

My Chase Slate and Freedom 15-month 0% APR periods end in March. Would you guys advise to keep those cards anyways or close them? I highly doubt I'll be using them as I was just appreoved for a $20k Capital One (0% APR for 12 mos) and a $5,600 Citi (21 month 0% APR) yesterday. I am in the process of moving into a new house and those new cards will help buy stuff for the house with the 0% APR.

I'm probably in the low 700's credit score-wise (I think Citi told me my EQ was 717). That being said, before I convert my mortgage to a conventional (it's a construction loan now....will convert when house is done in May)....I know the bank is going to re-run my credit, etc. and there are some closing fees that are credit-based. Thus, I'm thinking maybe to keep them open until after then as closing them might lower my score?

I make it pretty much a rule not to use non-0% APR cards unless it's going to be paid in full at the end of the month. Thoughts?

pipeguy · ‎01-28-2016

I'd keep them open if for no other reason to stay in good graces with Chase and the utility padding, you can always transfer the limits later to a "better" card. I'm a big fan of Zero Percent intros too but that doesn't mean I can the card as soon as they are over.

IncrsCreditScore1 · ‎01-28-2016

Agree with pipeguy. I understand Chase can be very unforgiving, so I would use the cards occasionally for purchases, then PIF, and stay on Chase's good side.

January 2018 Scores - EQ 797 | TU 800 | EX 798 | ~~Started Gardening Again on March 21, 2017

UncleB · ‎01-28-2016

+1 to the above.

I would leave them alone for now, but not so much out of concern for Chase, but for your upcoming mortgage.

If you got approved for your construction loan with your current profile, it would be best to change as few things as possible with your overall credit profile, at least until your conventional mortgage is finalized. You've already added the new accounts (which will probably even help) but I would hesitate to change too much else.

Just my 2¢.

red259 · ‎01-28-2016

I would leave them open since they are no-AF cards. The freedom can be nice for the rotating categories as well. I wouldn't keep them open out of fear of Chase though. Who cares what Chase thinks. You need to decide what is best for you. I like the freedom card and use it sometimes on cat spend. You can dump the slate if you don't need it for the util, but its not hurting anything by keeping it either.

;
Starting Score: EQ: 714, TU 684
Current Score: EQ: 725 7/30/13, TU 684 6/2013, Exp 828 5/2018, Last App 8/5/17
Goal Score: 800 (Achieved!) In garden until Sepetember 2019

Anonymous · ‎01-28-2016

100000% unequivocally keep your limits open with chase. even though you read so much about their systems being hacked and id theft, etc.... you can use these limits as leverage in the future to open accounts.

I would strongly advise that after you modify your mortgage, you look at your entire credit profile, and if you are not in the market for anymore loans, I would use a few inquiries and grab a couple bonuses. Do this after the mortgage is closed and funded and before it reports to your credit. I would app for Chase IHG or Hyatt, and pair that with the AARP card if its still at $200 bonus. Whichever best suits your needs.

And really it sounds like you may not be maximizing your spend. Do you not use the rotating categories of chase? Because truthfully you are only opening accounts for 0% offers for balance transfers? I would take a closer look and go with Discover or Bank of America. Those two banks have consistently blown me away with BT offers and great limits.

Now you would ideally want a card like the penfed promise or barclay ring or any other card with no BT fees to do this debt shuffle. You could be carrying a balance on your card and the promo period ends but at the same time it already had a BT offer on it. So you move the balance from the current card, to another card like the ring, for no bt fee, then move it back to the original card. As long as you dont use this tactic to accumulate massive amounts of debt you will succede in reducing the amount of interest paid, inquiries added, and new accounts opened. Then once you get your savings built up you can always pay your cards off in full, and use the cards to make more money in the form of points or cash back. Just my $0.02.

myjourney · ‎01-28-2016

Transfer slate limit to freedom and close slate after closing on new home (congrats)

No ill effects when they pull for conversion of mortgage

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?

elim · ‎01-28-2016

Keep em' open and throw them a bone now and then with a little spend. Don't want to Dine and Dash (or look like you are).

Kevin86475391 · ‎01-28-2016

@myjourney wrote:
Transfer slate limit to freedom and close slate after closing on new home (congrats)
No ill effects when they pull for conversion of mortgage

This is what I would suggest as well. The Freedom really is a great card. If you can use it for 5% category spending and PIF before paying interest you'll do quite well in rewards. I'd transfer as much of the limit from the Slate to the Freedom as they'll allow (I think they might require that you keep $500 on the Slate), and then after your mortgage is all set, close the Slate as you see fit. Really though there's no reason to rush closing it. There's no annual fee and if you keep and monitor the Freedom it'll be super easy to just keep an eye on the Slate too. If they eventually end up closing it for inactivity themselves, no harm done.

Also, obviously it's none of my business, but it seems like you're both a big fan of 0% APRs yet consistently doubling up on them (first Freedom and Slate at the same time, now your two new ones at the same time). If 0% offers are important to you, personally I'd suggest having no more than one 0% offer going at a time. There's not really any reason to have more than one (unless they give you small limits) and by having multiple at a time you're adding extra inquires and run the risk of appearing like a churner and burning bridges with lenders. But again, none of my business. I just wouldn't personally have more than one 0% offer at a time. Best of luck and congrats on your new home!

SouthJamaica · ‎01-28-2016

@mjr2444 wrote:
My Chase Slate and Freedom 15-month 0% APR periods end in March. Would you guys advise to keep those cards anyways or close them? I highly doubt I'll be using them as I was just appreoved for a $20k Capital One (0% APR for 12 mos) and a $5,600 Citi (21 month 0% APR) yesterday. I am in the process of moving into a new house and those new cards will help buy stuff for the house with the 0% APR.

I'm probably in the low 700's credit score-wise (I think Citi told me my EQ was 717). That being said, before I convert my mortgage to a conventional (it's a construction loan now....will convert when house is done in May)....I know the bank is going to re-run my credit, etc. and there are some closing fees that are credit-based. Thus, I'm thinking maybe to keep them open until after then as closing them might lower my score?

I make it pretty much a rule not to use non-0% APR cards unless it's going to be paid in full at the end of the month. Thoughts?

Absolutely keep them open. Use each card at least once every 3 months just to keep it open. Down the road, the Freedom card seems like a pretty useful card, so if I were you I would keep it, and sweep most of the Slate credit line into the Freedom card account.