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Closing All Rebuilder Cards

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keithbward
Frequent Contributor

Closing All Rebuilder Cards

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.

Starting Scores - EX 547 || EQ 541 || TU 538 - 01/21/2014
Current Scores - EX 691 || EQ 628??? || TU 695 - 08/04/2015
Goal Scores - 720 across the board
Current Utilization - 12% and going down
Message 1 of 18
17 REPLIES 17
Creditaddict
Legendary Contributor

Re: Closing All Rebuilder Cards

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.

Message 2 of 18
juggalo9er
Valued Contributor

Re: Closing All Rebuilder Cards


@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.


+1 i would only close if they charge a fee

Message 3 of 18
keithbward
Frequent Contributor

Re: Closing All Rebuilder Cards


@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.


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.

Starting Scores - EX 547 || EQ 541 || TU 538 - 01/21/2014
Current Scores - EX 691 || EQ 628??? || TU 695 - 08/04/2015
Goal Scores - 720 across the board
Current Utilization - 12% and going down
Message 4 of 18
heyarrnold
Valued Contributor

Re: Closing All Rebuilder Cards


@keithbward wrote:

@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.


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.


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. 

Message 5 of 18
wacdenney
Valued Contributor

Re: Closing All Rebuilder Cards

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.

Message 6 of 18
keithbward
Frequent Contributor

Re: Closing All Rebuilder Cards

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.

Starting Scores - EX 547 || EQ 541 || TU 538 - 01/21/2014
Current Scores - EX 691 || EQ 628??? || TU 695 - 08/04/2015
Goal Scores - 720 across the board
Current Utilization - 12% and going down
Message 7 of 18
Closingracer99
Valued Contributor

Re: Closing All Rebuilder Cards


@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.


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


My Cards: Amex BCE: $9,000, Amex Hilton HHonors: $2,000, Amex ED: $12,000, Barclays NFL extra points: $3,000, Bank of America MLB cash rewards: $17,000, BBVA compass NBA Amex triple double rewards: $17,000, Chase Amazon: $1,000, Chase Freedom: $9,000, Chase Sapphire: $5,000, Chase Slate: $5,000, Chase Disney: $4,000, Citi Double Cash: $5,400, Citi AA plat: $5,500, Citi Simplicity: $3,000, Citi Thank you preferred: $8,800, Capital one GM: $2,000, Capital one PlayStation: $3,000, Gamestop: $1,150, Amazon Store: $5,000, Ebay MasterCard: $5,000, American Eagle Storecard: $750, Macy's: $500
EX: 744, TU:750, EQ: 740
Message 8 of 18
d170
Regular Contributor

Re: Closing All Rebuilder Cards

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


Time to Garden!!
EQ 703 TU 752 EX 711 as of 07/19/2014. In the garden until 01/19/2015. Baby steps, baby steps!! Trying for 750 ACROSS THE BOARD.
Message 9 of 18
ScarletFever
Frequent Contributor

Re: Closing All Rebuilder Cards

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.
.Citi FICO-836 Barclays TU FICO; 827. Discover Fic0-826; CK:EQ-821; TU-819; CS-819; Total credit-$165,500: NASA-29,700; AMEX BCP-17,000; AMEX EDP-20,000; CSP-14,400; Barclay Ring-10,000; Discover It-9,000; U.S.Bank Sig Visa13,000; United TeleTech Federal Credit Union-$9000; Citi Double Cash-9900; Citi TYP-7,700; Discover Cashback Bonus-7,200;Chase Freedom-6,500; AMEX HHilton Honors-5000; Barclay NFL Extra Points-$5000. Utility always 1-2%
Message 10 of 18
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