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Closing a few cards

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Regular Contributor

Closing a few cards

Hello all! Long time reader and have posted around here for sometime now too! Little background of my accounts

9CC = 21k Credit limit
AAoA = 1.4 years

I’m looking to close out around 3-4 of my 9 cards based on never using them and don’t want to have 9 cards open to play around with and keep open. These will be the cards that have been open the shortest amount of time which would be around 6-8 months. I know my overall utilization will drop and increase what I have used now which will impact or change my fico a bit. My current scores are 712/712/726 all are actual fico scores. This will also impact my fico but I have it will bounce back in time. Also I am not looking to open any new trade lines of any sort.
Message 1 of 26
25 REPLIES 25
Community Leader
Super Contributor

Re: Closing a few cards

As it doesnt appear you are looking for advice by your post, let me wish you good luckSmiley Happy
Message 2 of 26
Community Leader
Valued Contributor

Re: Closing a few cards

A good decision IMHO. I don’t like keeping cards that I don’t use either. Simplicity is a great feeling.  Not having to think, “which card should I use for this, and that, and that....” I’m trying to figure out what to axe myself. 

 

Good luck with everything!

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Message 3 of 26
Valued Contributor

Re: Closing a few cards

Post your dp after you drop some. That would be cool to see.
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Message 4 of 26
Senior Contributor

Re: Closing a few cards

Have you thought about just not using them? Your AAoA suggests you have a rather thin profile, if you don't have AFs, I would just lock them away somewhere instead of closing them. Eventually your creditors will close them for you but that will take some time and build up positive history on those accounts a while longer before they're closed. As far as your FICO is concerned, closed accounts have a positive effect on you for as long as they stay on your reports but in a manual review, it will look better to the person viewing to see more time on accounts being opened and also some lenders really don't like to extend additional credit later if you didn't keep their card at least a year.

70DD1A3B-9DE6-4CBB-A6D9-BA705BE22054.jpeg
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Hover over my cards to see my limits!
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Message 5 of 26
Established Contributor

Re: Closing a few cards


@tbonejr1127 wrote:
Hello all! Long time reader and have posted around here for sometime now too! Little background of my accounts
9CC = 21k Credit limit
AAoA = 1.4 years

I’m looking to close out around 3-4 of my 9 cards based on never using them and don’t want to have 9 cards open to play around with and keep open.
I believe in closing cards that are not used and worth keeping for age, etc.

These will be the cards that have been open the shortest amount of time which would be around 6-8 months.
Less impact over time because they are not your oldest.

I know my overall utilization will drop and increase what I have used now which will impact or change my fico a bit.
This is the information you have not provided for forum members to calculate the impact of your closing 3-4 cards. It might be OK if your utilization is low and the loss will not tank your scores. It might also be better to wait until your utilization is low before removing them, We have no info to help you with a plan. Keeping them might be more work but help your scores until you are in a stronger credit profile to drop them.

My current scores are 712/712/726 all are actual fico scores. This will also impact my fico but I have it will bounce back in time.
Time always helps

 

Also I am not looking to open any new trade lines of any sort.

This also always helps

 


 

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Ficos : 840 / AAoA : 9 yrs / AoOA : 23 Yrs / AoYA : 3
Message 6 of 26
Established Contributor

Re: Closing a few cards


@Saeren wrote:

Have you thought about just not using them? Your AAoA suggests you have a rather thin profile, if you don't have AFs, I would just lock them away somewhere instead of closing them. Eventually your creditors will close them for you but that will take some time and build up positive history on those accounts a while longer before they're closed. As far as your FICO is concerned, closed accounts have a positive effect on you for as long as they stay on your reports but in a manual review, it will look better to the person viewing to see more time on accounts being opened and also some lenders really don't like to extend additional credit later if you didn't keep their card at least a year.


+ 1, This is a good point.

FNBO 2% Cashback Visa (20k) / Bank of the West Cashback MC (20k)
US-Bank Cash+ (15k) / FNBO Travel Elite (15k) / Citi Double Cash (18k)
Ficos : 840 / AAoA : 9 yrs / AoOA : 23 Yrs / AoYA : 3
Message 7 of 26
Super Contributor

Re: Closing a few cards


@Saeren wrote:

Have you thought about just not using them? Your AAoA suggests you have a rather thin profile, if you don't have AFs, I would just lock them away somewhere instead of closing them. Eventually your creditors will close them for you but that will take some time and build up positive history on those accounts a while longer before they're closed. As far as your FICO is concerned, closed accounts have a positive effect on you for as long as they stay on your reports but in a manual review, it will look better to the person viewing to see more time on accounts being opened and also some lenders really don't like to extend additional credit later if you didn't keep their card at least a year.


While you shouldn't make a habit of opening and closing accounts, I don't see much point in throwing a card in a drawer for months/years until the lender closes it. How is that any better for the relationship with the lender? IMO It really isn't going to make a difference. You either closed the card, or didn't use it. As long as there's nothing negative associated with it (i.e. closing immediately after a bonus or something), I don't see the difference.

 

In this day and age of more and more fraud, I prefer simplicity and fewer accounts to track. If an account isn't giving me any benefit I just close it. Don't want to spend time keeping track of accounts that do nothing for me. Just my take on it.

 

I don't put much stock in the AAoA argument. I have yet to see someone post about their scores tanking because an old, closed account finally dropped off. AAoA itself is a fairly minor component of scoring and who knows what scoring models will even look like a decade from now?

Message 8 of 26
Senior Contributor

Re: Closing a few cards


@kdm31091 wrote:

@Saeren wrote:

Have you thought about just not using them? Your AAoA suggests you have a rather thin profile, if you don't have AFs, I would just lock them away somewhere instead of closing them. Eventually your creditors will close them for you but that will take some time and build up positive history on those accounts a while longer before they're closed. As far as your FICO is concerned, closed accounts have a positive effect on you for as long as they stay on your reports but in a manual review, it will look better to the person viewing to see more time on accounts being opened and also some lenders really don't like to extend additional credit later if you didn't keep their card at least a year.


While you shouldn't make a habit of opening and closing accounts, I don't see much point in throwing a card in a drawer for months/years until the lender closes it. How is that any better for the relationship with the lender? IMO It really isn't going to make a difference. You either closed the card, or didn't use it. As long as there's nothing negative associated with it (i.e. closing immediately after a bonus or something), I don't see the difference.

 

In this day and age of more and more fraud, I prefer simplicity and fewer accounts to track. If an account isn't giving me any benefit I just close it. Don't want to spend time keeping track of accounts that do nothing for me. Just my take on it.

 

I don't put much stock in the AAoA argument. I have yet to see someone post about their scores tanking because an old, closed account finally dropped off. AAoA itself is a fairly minor component of scoring and who knows what scoring models will even look like a decade from now?


There are data points that suggest that credit card issuers are less likely to dole out new cards to someone who didn't keep their cards long to begin with, something I myself have seemingly hit with Amex. The system is looking at me like a churner for a card I canceled before even getting. When I went to apply the second time, I was greeted with the lovely no SUB popup and then a denial with higher scores than I had for the first approval and a denial upon recon (the letter is coming today but I checked online and the reason code is my FICO score). It does happen and if those cards are Chase or Amex, its something to be concerned about.

 

You don't have to track anything, just lock it away and set alerts for any transaction activity. Fraud happens less frequently to sock drawered cards anyway but you will still pad another 4-12+ months of history on that card while it sits there.

 

The point about AAoA is one that I made myself recently that we don't know what scoring models will look like in the future - but what we can probably guess based on how they are now is that they will be ever more skewed in the favor of the lenders and not the consumers so we may see accounts fall off earlier when they're closed. Its a moot point in the immediate term though.

 

I still argue that for such low AAoA, its better to keep the cards open than close them though. OP may not have any credit applications on the horizon right now but as we all know, life happens.

70DD1A3B-9DE6-4CBB-A6D9-BA705BE22054.jpeg
Scores 1/2019:
Scores 8/2019:

Hover over my cards to see my limits!
Goal cards:
Message 9 of 26
Regular Contributor

Re: Closing a few cards

Thank you for the responses to this. The cards I was looking to close were all low limit cards (limits that are around $500 or $1000)I only have $750 used out of the 21k so dropping a few cards wouldn’t be so bad but I might as well just keep them locked away and and if they close eventually they close and still help out the AAoA even after a few years of them being closed by creditor
Message 10 of 26
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