@Aim_High wrote:
@CYBERSAM wrote:
@Laredo wrote:
Ollo Rewards $3K
Ollo Platinum $3.9K
Jared $5K
Mercury $3.5K
I would get rid of useless CCs especially the ones from rebuilding days! Focus on the CCs that can grow with you.
Many people say don't cancel the CCs that don't have AF, but no need to keep useless CCs!
I concur with the picks of @CYBERSAM. Those would be easy to cut.
The main implications of closing cards are:
- Aggregate Utilization impacts: This is the immediate impact that would most often affect FICO when consumers close cards. Not applicable in this case since you're not carrying a balance and have many cards. For someone who has three cards and a balance on two of them, it could be a different scenario. I might also consider the possible benefit of future utilization if the cards-in-question had significantly higher credit limits, which could provide some utilizatation protection. However, that's also not applicable.
- Lowering AAoA (Average Age of Accounts): Eventually, closing older accounts will somewhat lower your AAoA. However, while there is no guarantee, many lenders will still report the accounts to the bureaus up to about 10 years after they are closed. (Some may stop reporting earlier; some may stop reporting later.) So in most cases, there is just a negligible effect on your account age by the time accounts drop off, not worth any concerns.
- Loss of Oldest Account: If, for example, the Mercury card had no AF and was 20 years older than the other cards, I might keep it open just for the "Age of Oldest Account" reporting. I doubt that is the case. If you're paying a fee or find a card worthless otherwise, I would say close it even if there is a small effect on oldest account. It's not worth the worries for a small benefit.
You're doing the right thing by asking questions though, @Laredo. I believe in the slow, cautious, and methodical approach when it comes to closing accounts. I'm in no hurry and consider the impacts. Once it's done, it's done. The pro's for keeping an account open often outweight the con's. I'll also mention that by hanging onto some of my older accounts even when they became less useful, I was eventually able to product-change them into more updated card products while preserving the account age and lender relationship. So my four oldest cards (that I still have open) date back to 1993 to 2000. They help "anchor" my AAoA.
The Ollo cards are my oldest then Jared and Mercury. The Ollo cards are about three years old and Jared/Mercury around two.
(Ch13 Discharged 07/22) Current Cards: American Express Gold: NPSL | American Express Blue Cash Everyday: $15,000 | American Express Delta SkyMiles Platinum: $1,700 | Navy Federal Credit Union Cash Rewards: $10,000 | Dover Federal Credit Union Cash Back: $10,000 | Penfed Cash Rewards: $7,500 | Truist Enjoy Cash: $5,500 | Truist Enjoy Travel: $5,500 | Truist Future: $3,500 | Bread American Express Cash Back $8,500 | Discover it $12,000 | USAA Rewards Amex $12,000 | Kohl’s $800 | Care Credit $7,000 | Lowes $3,000 | Amazon Store Card $1,500 | Jared $5,000
Total Revolving Credit: $108,500
Closed Rebuild Cards: Ollo Platinum: $3,900 | Ollo Rewards: $3,000 | Mercury $3,000 | Surge Card $1,000
