@Laredo wrote:I have some cards that helped me through my Ch13. Now that it has been discharged and getting approvals for better cards do any of the ones below should be considered for the chopping block. Just nervous I may get a ding if I do.
Ollo Rewards $3K
Ollo Platinum $3.9K
Jared $5K
Mercury $3.5KNFCU Rewards $5K
Penfed $2.5K
Discover $13K
Amex Gold NPSL
Amex Blue Cash Everyday $15K
Been following this forum and have learned alot. Just not sure if I will hurt myself by letting som cards go.
I have a $10 balance on my Discover. Rest are 0.
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 recently canceled Quicksilver and planing to cancel Walmart CC as I got them for rebuild.
Also congrats on improving your credit 👍👍
@CYBERSAM wrote:
@Laredo wrote:
Ollo Rewards $3K
Ollo Platinum $3.9K
Jared $5K
Mercury $3.5KI 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.
