Close low limit cards in my situation?

[devacraze]

I see some slightly conflicting advice here about whether closing a low limit account can raise your score so wanted to ask specifically about my situation to see if anyone had any advice:

AAoA: 11 years

Cards:

FIA MBNA - 37,700 limit (opened 2005) - 0% util

Chase No. 1 - 500 limit (opened 1994) 0% util 

Chase No. 2 - 19,500 limit (opened 2007) - 0% util

Citibank - 37,300 limit (opened 2006) - 56% util

Duck card - 20,000 limit (opened 2013) - 0% util

Amex 1 - 500 limit (opened 2007) 0% util

Amex 2 - 9,500 limit (opened 2007) - 0% util

Discover - 13,300 limit (opened 2001) - 0% util

Overall utilization is anout 16%

I have a fair amount of older open student loan accounts and mortgage going back over 10 years. 

Current myfico scores:  Exp 829, Eq 782 and Tu741

In addition to the score, I am also concerned that having two low limit cards will make a bank pause when deciding whether to give me any new  high limit card.

I am not interested in adding any cards unless they have a starting credit line of at least 20k or 30k.

Any advice from the group on whether I should close that 500 limit amex and chase card? They do not have AFs

Thanks

[takeshi74]

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@devacraze wrote:

I see some slightly conflicting advice here about whether closing a low limit account can raise your score so wanted to ask specifically about my situation to see if anyone had any advice:

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Utilization has an immediate impact on your score.  You can calculate the difference before and after to aid you in making your decision.  Keep in mind that both overall and individual utilization matter.

Closed accounts in good standing continue to report for 10 years so closing won't affect AAoA until the account falls off.

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@devacraze wrote:

In addition to the score, I am also concerned that having two low limit cards will make a bank pause when deciding whether to give me any new  high limit card.

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Doesn't seem to have stopped you so far.  Others have certainly been able to acquire high limit cards even with low limit cards reporting.  What makes you concerned at this point?

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@devacraze wrote:

Any advice from the group on whether I should close that 500 limit amex and chase card? They do not have AFs

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It's really your call to make.

[Involver]

I would see no reason to close them especially if they are no AF.  It's obvious that prime lenders have been willing and generous with large CL cards for you already so I don't think that those lower limit cards will preclude you from high credit lines in the future.  I'd personally keep that Chase No. 1 open forever as that is a great TL for AAoA.

[Anonymous]

The utilization impact of your CCs with tiny CLs is moot.

If you close them, there's no immediate impact on AAoA.

With regard to the longer-term impact on AAoA, an example may be useful.

Chase #1 is 20 years old.  If you close it right now, and it drops off your reports in 10 years, then you'll lose 30 years of account age.  This 30 years would need to be spread over the number of accounts you have 10 years from now.  If you have 15 accounts then, your AAoA would decline by 2.0 years (30.0 / 15).

I've heard occasional reports of some underwriters not liking low-CL accounts, but I'm not sure that I'd chase after this issue very hard.

[lg8302ch]

You could easily move CL among Chase accounts. What I would do with the low limit Amex ask for 3 x CLI  and repeat every 180 days. Within a year you  would have a higher limit if you are concerned about the low limit. But I would not close them and simply use them for a small recurrent charge on autopay.

[Fico2Go]

I don't think AAoA makes that much of a difference beyond 3 years of good account history.  At its best the highest AAoA benefits no more than 10% of total scoreing. 

Having said that in a manual review for credit most analysts will also see recently opened accounts and that probably makes a bigger impact than anything else AAoA related.

AAoA does however show loyalty to one creditor and that comes handy when requesting CLI or other benefits from that particular provider.  

[youngandcreditwrthy]

if you're willing to take a HP for a cli on Chase you might call them and request a 25k or 30k cl.

 Amex clis are SP and you may be only able to get a cli 3x the current limit.

so

ask for a cli to $24,500 on the 9500 Amex, then you could maybe move over part of the limit to the lower one or close it altogether. Keep in mind the general consensus is that Amex will request tax info if you have > $35,000 in cls with them or more than $25k on one card. 

bottom line: if you can get higher cls on the cards in question and can use them to get your util at 9%, you might see a boost in your score(s).

if you dont want clis however, just close 'em. I foresee no impact on your ficos due to closure. 

[Kenny]

If you're going to close a Chase card... I would PC the #1 (94 card) to whatever you want it to be and move the CL over to it and close the other card. (Just to keep that 94 TL open and going.)

I hardly think that closing 2 of these accounts is going to do any damage to you at all.

And CLI that Amex.

[Fico2Go]

It would be wonderful if one of our members here could share how much their fico increased by with the addition of back dated TLs. Preferably by someone with < 10% util..

That would once and for all clarify the aaoa wonderment.

[lg8302ch]

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@Fico2Go wrote:
It would be wonderful if one of our members here could share how much their fico increased by with the addition of back dated TLs. Preferably by someone with < 10% util..

That would once and for all clarify the aaoa wonderment.

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The other way around. I cut my AAoA from 18 yrs to 4 yrs in 2013 and can confirm no punishment from Fico for it.