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Well I feel like I've completed phase one of my credit building journey, which was to be able to have a sufficient credit score to get decent credit terms.
Along the way, I must confess, I have been chasing credit limits for no real reason other than to have good credit limits.
At this point I've come to the self-realization that the cards I value most are those which have some versatility, and are not strictly good for making purchases. I.e., I want cards which have reasonable options for balance transfers, carrying balances if the need should ever arise, and even for cash advances.
And so although it cuts against the grain for me, I have decided to start axing some of the less-versatile cards I have, to fine tune what I have, and concentrate on quality rather than quantity.
In looking over my credit card array, the Synchrony cards looked like the most likely suspects for thinning out, since they have no utility other than for making purchases. I will hate to see the Marvel card go, because it had the power to make cashiers smile, but having Spiderman on the card is not a sufficient reason to keep it.
My utilization will still be low in the near future, so this will be an opportunity to test whether it is really true that merely closing cards does not in itself create negative FICO consequences. Something in me says it might not be that simple, that banks are a vindictive bunch.
But we shall see.
I loved this:
"... having Spiderman on [a] card is not a sufficient reason to keep it."
My eyes aren't good enough to see whether any of the cards in your signature are store cards. If any of them are, that might feature in your decision making process. The insurance industry notes how many store cards and gives you a penalty (on their score) for each one that you have.
FICO does not impose a penalty for store cards, but the insurance industry does.
@Anonymous wrote:My eyes aren't good enough to see whether any of the cards in your signature are store cards. If any of them are, that might feature in your decision making process. The insurance industry notes how many store cards and gives you a penalty (on their score) for each one that you have.
FICO does not impose a penalty for store cards, but the insurance industry does.
No the only pure store card I had was a Comenity Eddie Bauer card, which I got on impulse under pressure from a cashier, and cancelled a week later.
I had the Care Credit card, which was a bit like a store card in that it was only good at certain places. That's one of the cards I put on the chopping block today.
Today along with Care Credit, I also closed my other 2 Synchrony offerings, the Marvel Mastercard and the Ebates Visa card.... $47k in credit limits, out the window.
@SouthJamaica wrote:
My utilization will still be low in the near future, so this will be an opportunity to test whether it is really true that merely closing cards does not in itself create negative FICO consequences. Something in me says it might not be that simple, that banks are a vindictive bunch.
It is pretty much that simple, though. The only thing immediately impacted by closing a card is utilization. If the decrease in limits does not dramatically change your utilization, closing the card isn't going to do anything positive or negative to your score.
@909 wrote:
I have a dumb Barclaycard Apple rewards card. It has a $2K CL and they won't raise it w/out a HP. It earned 3x rewards for an iPad purchase but it won't fully cover a MacBook purchase. It's the last card I have with a CL below $9K and I haven't appreciated the service I've received. The only reason I keep it is to help my AAoA down the road and concern that cancelling it would harm my scores.
Question: I have six other revolvers, 5 opened in 2016 and one opened in 2012. I also have a mortgage and car loan. Oldest account is 28 years (closed) and AAoA is about 5 years. Should I be concerned about closing the Barclay card from an AAoA or score perspective?
Thanks.
Nope, closing it will not alter your AAoA at all. Is it clear to you why it won't alter your AAoA? Real important for you to understand that.
It might have had a (slightly) bad effect on your score if you had very few open credit cards. In order to get the highest scores you need 3 or more cards. In your case, even after you close this, you will still have SIX other credit cards. So you are fine.
The only concern I have is how old this particular Barclay card is. You don't tell us that. We need to know how old this card is, and whether it is your oldest open account. If your oldest open account is another account -- what account is that and how old is it?
With these questions I am trying to get clear what will happen to your "Age of Oldest Account" when your ultra old but closed account falls off.
@SouthJamaica wrote:
@Anonymous wrote:My eyes aren't good enough to see whether any of the cards in your signature are store cards. If any of them are, that might feature in your decision making process. The insurance industry notes how many store cards and gives you a penalty (on their score) for each one that you have.
FICO does not impose a penalty for store cards, but the insurance industry does.
No the only pure store card I had was a Comenity Eddie Bauer card, which I got on impulse under pressure from a cashier, and cancelled a week later.
I had the Care Credit card, which was a bit like a store card in that it was only good at certain places. That's one of the cards I put on the chopping block today.
Today along with Care Credit, I also closed my other 2 Synchrony offerings, the Marvel Mastercard and the Ebates Visa card.... $47k in credit limits, out the window.
Why this card? I found this card to be valuable as it pays you back in addition to having an eBates account - unless you simply do not shop via eBates.
769 ⋅ INQs: 6 | 774 ⋅ INQs: 5 | 764 INQs: 8 | UTIL: 2% | AAoA: 5yr 8mos | Total Credit Line: $873,950 |