Closing All Rebuilder Cards

[keithbward]

I've had significant progress in the last 7 months with my credit profile. Huge thanks as always to all of you here for your wisdom and sharing your stories and experiences. That information has really helped me create a credit profile I can be proud of as well as look forward to building even more. My question for today is about closing my rebuilder cards and cards with "toy" limits as I've seen around here. Is there a certain procedure I should do in closing them? Can I close them all at the same time? Wait til there's a solid year of reporting or 6 months? Is closing too many at one time frowned upon by creditors who I may apply for in the future? Thanks for your responses.

[Creditaddict]

the only issue if any with closing credit cards is you loose the availabe credit thus causing your utilization across the board to go up... if your balances are in check across the board than take this step with stride and CLOSE them all down that are rebuilders and costing you money.

[juggalo9er]

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@Creditaddict wrote:

the only issue if any with closing credit cards is you loose the availabe credit thus causing your utilization across the board to go up... if your balances are in check across the board than take this step with stride and CLOSE them all down that are rebuilders and costing you money.

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+1 i would only close if they charge a fee

[keithbward]

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@Creditaddict wrote:

the only issue if any with closing credit cards is you loose the availabe credit thus causing your utilization across the board to go up... if your balances are in check across the board than take this step with stride and CLOSE them all down that are rebuilders and costing you money.

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The available credit is laughable to say the least. I've been approved for one card that would cover those "losses". My utilization is always between 2-5% monthly so even a jump would not even be close to the 25-30% I just want to make sure I don't close anything too early and have it be viewed as negative. My rebuilding timeframe was a whole lot shorter than I thought it would be and I'm thankful for that. I just want to make sure that having a card open for 3 months and then closed isn't viewed wrong by potenetial creditors in the future. Most of them have 6 months, but I was wondering if I should wait for a year of reporting. The cards are in a lock box and currently $0 balance and not being used at all.

[heyarrnold]

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@keithbward wrote:

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@Creditaddict wrote:

the only issue if any with closing credit cards is you loose the availabe credit thus causing your utilization across the board to go up... if your balances are in check across the board than take this step with stride and CLOSE them all down that are rebuilders and costing you money.

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The available credit is laughable to say the least. I've been approved for one card that would cover those "losses". My utilization is always between 2-5% monthly so even a jump would not even be close to the 25-30% I just want to make sure I don't close anything too early and have it be viewed as negative. My rebuilding timeframe was a whole lot shorter than I thought it would be and I'm thankful for that. I just want to make sure that having a card open for 3 months and then closed isn't viewed wrong by potenetial creditors in the future. Most of them have 6 months, but I was wondering if I should wait for a year of reporting. The cards are in a lock box and currently $0 balance and not being used at all.

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If they have fees, close them. Otherwise, leave them open. I had my starter cards open for 6 months and then closed them all off once I was approved by a prime lender. I haven't looked back since, and there have been no adverse effects. 

[wacdenney]

I'm in the close em camp.  Once they serve their purpose I say good ridance! 

My score has actually gone up after the last 2 I closed.  No idea why.

[keithbward]

I see the consensus is kick them to the curb and I'm perfectly fine with that. I was only concerned about any adverse affects of closing multiple all at once. They have definitely served their purpose, and in a whole lot faster timeframe than I originally expected, but I have better cards and limits. The only secured card I'll continue to carry is my DiscoverIT card since it will graduate next year and my profile will have matured so much.

[Closingracer99]

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@Creditaddict wrote:

the only issue if any with closing credit cards is you loose the availabe credit thus causing your utilization across the board to go up... if your balances are in check across the board than take this step with stride and CLOSE them all down that are rebuilders and costing you money.

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Also I wouldn't close them unles you got card(s) to repalce them 

[d170]

When I closed my rebuilders. I got approved for new cards. So I closed FP visa got a new card. FP limit 350 rapid rewards 8k. FP MasterCard closed 550 opened Barclays and Amex 2.5k limit. Small dip but I bounced back. This was down in June/July and all cards are reporting. I started off in the mid 500's this year and am approaching 750+ across the board. YMMV

[ScarletFever]

I closed FP, Firestone, and 1st Savings within last couple years. I did so only after I had prime cards with decent credit lines and low util. Paying fees was not worth it, and the psychological boost was helpful having struggled for years. You will keep positive entries.