Closing and CLD Spree

[ilovelisa]

This is the opposite of what most MyFicoers want. However, I have reached a point where I believe I have too many cards and too much available credit. I do not have many major purchases to put on cards. I have found that my daily spending is drastically increased when I am paying by credit card. I have now opted to open a second checking account with a portion of my pay to be deposited in it to act as a budgeting tool. I am a lot more concious of my spending when I have an "allowance." I been doing this for 3 weeks now and have noticed my savings account increase quite a bit. 

Tonight I closed my Freedom card with a $15K limit. 

PenFed is getting the ax tomorrow when they open. That will be another $9.5K gone.

I called and reduced several limits too:

Bank of America from 25k to 10k

American Express from 18k to 10k

Discover from 17.2k to 10k

I will be keeping my Amex, BoA Mastercard, Discover, and local CU Visa. That way, I have one card from each major network. I will also keep my ICBC UnionPay card since it is too unique to go without. 

I will go from $96.2K in avaliable credit to $41.5k. Still more than enough.

[Anonymous]

Whatever works! Saving money is always more important than scores and limits. You seem to be in a position where your credit limits are great so I assume your scores are great. The only time you really need to worry about your scores is when you are hashing out loan terms. If your decision leads to less stress then high fives are in order for sure!

[ilovelisa]

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@Anonymous wrote:
Whatever works! Saving money is always more important than scores and limits. You seem to be in a position where your credit limits are great so I assume your scores are great. The only time you really need to worry about your scores is when you are hashing out loan terms. If your decision leads to less stress then high fives are in order for sure!

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My TU and EX are just over 800. My EQ is 780. I plan on financing a car soon and don't want the possibility of hearing "too much available credit" or it to somehow negatively affect the loan. 

[NRB525]

Credit limits are dynamic, it's best when credit choices are consciously made.

So if you aren't comfortable with the credit and cards you have on hand, think it is more than you want to manage, then your choice to reduce is good.

[ilovelisa]

Management was another part of the decision. Going from 7 to 5 will help some. When I first found this site, I was one of those constantly apping for everything and mostly being denied for too new of a history and too many inquiries. Then the approvals started coming in. At the most I had 22 cards open at once. I have 46 accounts reporting as closed since 2011. I no longer have the time, desire, or energy to deal with so many credit accounts.

[Gmood1]

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@ilovelisa wrote:

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@Anonymous wrote:
Whatever works! Saving money is always more important than scores and limits. You seem to be in a position where your credit limits are great so I assume your scores are great. The only time you really need to worry about your scores is when you are hashing out loan terms. If your decision leads to less stress then high fives are in order for sure!

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My TU and EX are just over 800. My EQ is 780. I plan on financing a car soon and don't want the possibility of hearing "too much available credit" or it to somehow negatively affect the loan. 

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Do what you must to feel at ease. FWIW, your available credit has zero impact on auto loans. As long as you don't look like you're over your head in CC debt..they don't give a hoot. Penfed is a great CU to have in your corner on those types of loans. I financed two vehicles with them last year. With TCLs several times of yours, they didn't even bat an eye. 

Live long and prosperous!

[ilovelisa]

That's great to hear that available credit doesn't affect the loan. I have heard many wonderful things about PenFed and auto loans. I will still be a deposit customer with a savings and CD. Hopefully that can win some points if I need them for an auto loan. 

[Gmood1]

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@ilovelisa wrote:

That's great to hear that available credit doesn't affect the loan. I have heard many wonderful things about PenFed and auto loans. I will still be a deposit customer with a savings and CD. Hopefully that can win some points if I need them for an auto loan. 

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Yeah..don't sweat it.. you'll be fine. I have one card with them... started out with two. Closed the Amex and combined it to one. The Penfed Cash Rewards is my go to for unlimited 5% off gas. Thats all I use it for. They've been good too me. You'll be hard pressed to find a better auto loan rate. While everyone else has been bumping up their rates. Penfed's hasn't changed in over a year.

[ilovelisa]

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@Gmood1 wrote:

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@ilovelisa wrote:

That's great to hear that available credit doesn't affect the loan. I have heard many wonderful things about PenFed and auto loans. I will still be a deposit customer with a savings and CD. Hopefully that can win some points if I need them for an auto loan. 

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Yeah..don't sweat it.. you'll be fine. I have one card with them... started out with two. Closed the Amex and combined it to one. The Penfed Cash Rewards is my go to for unlimited 5% off gas. Thats all I use it for. They've been good too me. You'll be hard pressed to find a better auto loan rate. While everyone else has been bumping up their rates. Penfed's hasn't changed in over a year.

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Mine started as the Travel Rewards Amex and I PC'd it to the Platinum Rewards Visa Sig. I'm a member at PenFed and DCU. Hopefully between those two I can get a good rate. 

[grillandwinemaster]

Congratulations on your decision to simplify. I was also in the same situation as you found yourself. At my peak, I also Had 20+ accounts to manage. Like yourself, I found it a hassle and a headache to manage that many accounts. I'm down to 7 accounts, and this coming spring, I'm reducing down to 3-5 accounts.

 Less is more!!

Congrats on your decision to simplify#