I would not close any card that does not cost me anything.
I would even pay small AF for cards that helped me when no one else would.
GL!
@icyhot wrote:Since last posting I have gotten some significant increases on my NFCU and PenFed cards, as well as my mostly used store cards (limits are in signature) I'm still having a hard time with closing my CapOne QS (oldest card since filing BK) and a couple store cards. I have not used my Lexus card since opening it, I never shop at Saks and my Target limit is too low to do anything significant with (like appliances). I know the Target card is one that puts you through the long game, so it may pay off to wait. However the other three are serving no purpose outside of payment history. My UTL would be impacted by 1% if I close them. WWYD
I'm often an advocate of not casually closing cards but sometimes it's appropriate. As I like to point out, the "gardening" euphemism we use in refraining from new credit-seeking can also be applied to the "weeding out" of the garden (card collection) as our profiles or needs change. While there isn't a guarantee, in most cases a closed card will continue to report for as much as around ten years on your report. (I've had some stop reporting quickly and others continue to report longer than ten years.) You've addressed the major concern about closing cards (utilization impact) and it appears that would be insignificant.
In your case, I like your plan. I like to close lower limit cards as higher limits across the board are often more useful. I also prefer not to retain retail store cards since they may be less useful and more easily closed for non-use. In my case, I make an exception for my Costco card since it doubles as a membership card and I regularly shop at Costco. Your planned closures would make your lowest limit card $4.5K and make for a more simple lineup to manage. You'd be reducing your TCL from $97,850 to $91,500, but that's only a 6% reduction. Meanwhile, you'd be raising your Average Credit Limit from $7,526 to $10,166.
As @pizzadude pointed out, if there is no AF, you could also just sock drawer the cards and wait for the lenders to close them natually. But usually if I've made a decision to close a card, I'd rather do it on my terms and have the closure marked "at consumer's request." The reason would only be noticed on a manual review of the file, but it clarifies that the lender didn't close it for cause, IMO.
- NFCU Cash Rewards $20K
- NFCU More Rewards Amex $12.5K
- PenFed Power Cash $12.5K
- PenFed Platinum Rewards $12K
- PenFed Pathfinder Rewards $6K
- NFCU Go Rewards $4.5K
Capital One Quiksilver Rewards $1050- Bergdorf Goodman $10.5K
- Neiman Marcus $7.5K
- Care Credit $6K
Lexus $2.5KSaksFirst $2KTarget $800
Cap1 QS is my oldest CC too. Also had Sacks that got closed for no activity!
Couple of years ago I closed all of my CCs that would not grow and were under 5K, in couple of years probably do it to under 10K limits.
They are going to report for 10 years after closing!
However that Cap1 QS is good to keep for now. It is most likely bucketed because of your credit predicament at that time and it is not going to be easy to get CLI for. See if you PC it to Venture One and put some monthly usage on it and hopefully it can come out of abyss!
@icyhot wrote:Since last posting I have gotten some significant increases on my NFCU and PenFed cards, as well as my mostly used store cards (limits are in signature) I'm still having a hard time with closing my CapOne QS (oldest card since filing BK) and a couple store cards. I have not used my Lexus card since opening it, I never shop at Saks and my Target limit is too low to do anything significant with (like appliances). I know the Target card is one that puts you through the long game, so it may pay off to wait. However the other three are serving no purpose outside of payment history. My UTL would be impacted by 1% if I close them. WWYD
It won't affect you scorewise one way or the other, so IMHO it's purely a matter of aesthetics. If you feel better closing the more useless cards, close them. If you don't care, then don't bother; it's always helpful to have more zero balance cards sitting there.
Listen I am a strong believer in closing cards that you don't use or feel forced to use just to keep open. I too went through a rebuild went from being excited for a $500 limit to now not having anything under 10k open. I'm at the point now where I don't care what the limit is if I don't get many benefits I'm gonna close it and put that spend elsewhere currently I'm looking at closing my 35k lowes card and possibly my 20k care credit card because I feel forced to use them I'm only holding on to care credit because my kids are au and it's helping their credit age and score it's only 3yo but it's my oldest card as I just closed Discover because I felt I was bucketed at 3.5k it was my oldest and no my score didn't change one bit.
It's not hurting you for them to be open. If no AF use once or twice a year and keep them open unless you are just tired of keeping up with them.
@MeN5 wrote:Listen I am a strong believer in closing cards that you don't use or feel forced to use just to keep open. I too went through a rebuild went from being excited for a $500 limit to now not having anything under 10k open. I'm at the point now where I don't care what the limit is if I don't get many benefits I'm gonna close it and put that spend elsewhere currently I'm looking at closing my 35k lowes card and possibly my 20k care credit card because I feel forced to use them I'm only holding on to care credit because my kids are au and it's helping their credit age and score it's only 3yo but it's my oldest card as I just closed Discover because I felt I was bucketed at 3.5k it was my oldest and no my score didn't change one bit.
Once or twice a year is all you need to use them. I used my $35K Lowes card once last year for a $275 purchase and once this year so far for a $30 purchase, just to show activity. No way I'd close it because you never know when you might need a new appliance or such and they always have Zero interest deals.
But more importantly in your case that would be wiping out $55K of CL and either now or down the road depending on usage of other cards effect your UTL greatly.