Hi All,
I have a question regarding closing some cards.
I'd like to shed some of my cards with lower limits. I know that higher limits usually beget higher limits.
What I'd like to do is close a few of my lower limit cards, wait a few months, and then apply for a new card. (Cough, cough: The ritz)
My question is this:
When applying, do lenders look at closed accounts limits? I know that a closed account will stay on your report for 10 years - but do those closed limits factor into the new limit they will offer you?
Sorry for any confusion, I'm just really interested in this.
Thank you. 
@Jansroom726 wrote:Hi All,
I have a question regarding closing some cards.
I'd like to shed some of my cards with lower limits. I know that higher limits usually beget higher limits.
What I'd like to do is close a few of my lower limit cards, wait a few months, and then apply for a new card. (Cough, cough: The ritz)
My question is this:
When applying, do lenders look at closed accounts limits? I know that a closed account will stay on your report for 10 years - but do those closed limits factor into the new limit they will offer you?
Sorry for any confusion, I'm just really interested in this.
Thank you.
Nobody is going to be able to tell you exactly what a lender is going to think when it comes to something like this, but the basic premise is that a lender likes to see how you manage higher limits. You are talking about closing your low limit cards, so IMO they are not going to really care about the limits on your closed out accounts. They will be interested in the payment history on those accounts as well.
;
You have three Chase accounts with decent limits, plus the auto loan? What is your AAoA? I would say you may be fine as is for another Chase card. Whether the limit reaches your expectation is another matter. Closing other bank cards (or Chase cards) with lower limits probably won't make much difference.
I doubt closed account limits matter. I've got a $21k limit on a closed AT&T Universal card, still paying a balance so still visible. Doesn't seem to get any CCC excited recently as the only really big limit I got was the DC Premier at $20k. Others were a lot lower, including several denials.
