Closing Charge Cards

[emptypockets]

I only have kept store cards open that I really use, and that offer me discounts when I do so. I have a couple that I need to close, (Jared and Dillard's) because I really don't use them, but their limits are higher (7.6k and 7.5k). My other store cards (Macys' and Kohl's) have much lower limits (1-2k), but I use them regularly, so I keep them open.

The bottom line is if a card doesn't work FOR YOU and what YOU want, then close it. It is much easier than trying to keep using it just to keep it open.

[thom02099]

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@Themanwhocan wrote:

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@phonic wrote:

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@Themanwhocan wrote:

The Kohls card really is a Charge card, though, isn't it?  It might be best to keep that, as it might be helping your mix of credit. Probably not very significant, but since you already have it...

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Why do you say that? My wife has a Kohls card, and though we PIF every month, I'm almost positive it's a credit card. 

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Well the online application specifically calls it a charge card:

https://apply.kohls.com/kohp_zb/app

Hmm, maybe it is a regular credit card after all. Perhaps they aren't making a distintion between Charge cards and Credit cards the way American Express uses the terms.

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Could be that this is the card's actual name....Kohl's Charge, just like AMEX Blue of Chase Freedom. At that same link you provided, if you take a look at the actual application, it's referred to as a credit card. 

[SunriseEarth]

The CRs also refer to store cards as "charge cards," which may explain some confusion.

Some lenders don't even consider store cards as part of their approval model, but they certainly affect one's FICO score.   I'm more of the philosophy of keeping cards open if they're manageable and not costing you. 

[AndySoCal]

Kohls and Target are both credit cards the lender call them what they like. A charge card is where the balance is due in full each month. Charge cards have no interest rates because you cannot carry a balance from one month to another.  Credit limits have no impact on your score other than its impact your credit utilization.  I am not sure what the prestige is of having credit limits that high imo opinion it does not matter. It is how manage your credit that is more important.  Other than some lenders want a credit card of at least a certain amount to qualify for a card and or income of a certain level I am not aware a lender who disqualify you because credit limt is below a certain amount.