Closing credit cards

[Anonymous]

So over coffee this morning with the DW I informed her of our divorce is imminent because we are closing our useless joint account. She asked if I would hold off until we purchase the new house so she could have it in the divorce. I agreed with the stipulation i get to live in the pole barn. 😂😂😂😂

[digitek]

Alright that was funny   Thanks for the laugh!

[Anonymous]

A lot of loan officers encourage you to close redundancies when you're shopping for a rental property. My mom closed like 12 cards in one day

[Anonymous]

To be quite honest I never said or assumed anything about a divorce... I said you likely have a REASON, you assumed divorce on your own.

Of course, some assumption has to be made based upon the question...That's the nature of asking for advice, someone has to assume, where the asker is trying to go or what they are trying to leave, otherwise it's hard to...Say oh OK, I see what you're doing... Here's how it works!!!!

In all honesty, I really never thought if divorce, frankly I thought there was a NEED to separate liabilities due to a SPENDING issue, which happens ALL the time, with MARRIED ppl

Divorced ppl just get divorced, that's a pretty simple situation....

Again, I still feel you're over thinking how much an UWer "reads" into the DETAILS of your profile....

As an UWer, I could give a ish less how many accounts you just CLOSED, pal
I care about
A) How many you have RIGHT NOW, in relation to MY new/about to be account
B) Your payment history, with WHATEVER amount of past accounts, you've had 5, 15, 50..... Doesn't matter how many you HAD....

I'd again, care MORE about how many current OPEN accounts one has, accounts that will COMPETE for infinite FUNDS when it comes to getting PAID!

Talk about ASSUMPTIONS???
Yes, that's what YOU are doing
And that's what an UWer does

You ASSUME the UWer gives a ish about how many you used to have

Im telling the UWer has to ASSUME, what 'might' happen if they ADD to the current existing STACK in front of them, period.

Example
It's NOT...Oh wow this guy just PAID OFF 6 car loans, darn it we would have preferred those stayed open so we could have been #7
No.... I am sure they'd like being car loan #1 or #2 vs 7, 8 or 9

Same thing with a gazillion freaking accounts of any kind.....
Let's see the guy wants us to be account #21 ...Well may be but we had HOPED to have been #51, to bad he CLOSED 20 accounts to move us UP in line to be paid

We really, really were looking forward to being further down the list of dozens and dozens AND dozens of UNSECURED credit accounts... I mean the positioning of being #50 or 60 certainly seemed important enough for us to be in a MUST PAY position 😇

When, I worked at my 1st CU....They had us ASSUME, that IF the applicant MAXED each OPEN account and HAD TO make a minimum payment, in addition to OUR new pending payment, what would the DTI be and could the applicant afford to comfortably make his/her payments based upon OUR DTI standard

* Again, we didn't add in CLOSED accounts , the ones still opened mattered ....As I said earlier the purging of accounts is the purging of possible EXTRA liabilities competing liabilities..
Why would that be a negative vs a positive, as a person considering being NEXT in line to be paid....

It's the same wild speculation that leads to 'may be there is a pending DIVORCE' that ASSUMES that perhaps the UW department would "assume" to WORSE if this or that were closed, because 'WHY' would a person close X amount of accounts on a Tuesday in February, must be something 'negative' about it???

Outside of humans reading into fantasy, nobody will give a flip flying fluke how many accounts you closed yesterday... The point is what does your profile look like TODAY at the moment it's being evaluated!

If the accounts were good, they were good...If they sucked well then that would be reflected within the overall history of the profile but the bottom line is

If we STOP with the emotional stuff and think of it from a logical financially prudent thought pattern...Of course I'm OK with a person getting rid of a bunch of other hat in hand suitors vs inviting me to lend and stand way way in the back of the long line to hopefully get paid AFTER all the other hats have been filled...C'mon now😎

[bluetegu]

The loss of available credit will effect your debt to available credit  ratio and drop your score.  Will also affect you length of history avg.

[SouthJamaica]

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@Anonymous wrote:
Ok needing a little advise here.
I want to close some credit cards, but don't want to raise any flags. I hear if that if they see a bunch of cards close they may assume I'm in some sort of financial trouble, which I'm not. And no my UTI will not suffer so no score hit should happen. I many cards. Would a red flag be raised if I closed alot at one time? Or should this be done over time?
I'm looking to dump anything that is a joint account with my DW, and all store cards. So ruffly about 20-25 cards.

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I would do it gradually, why tempt fate?

[pizza1]

Ive closed several cards at one time in batches over the last 2 1/2 yrs., and Ive been just fine with no issues from my other lenders.

..the only thing that happened was.....I got more credit, lol.

my last closing spree last month was 7 cards at once. the most Ive closed at one time was 10, and it was all done in one setting.

People make it out to be more than it is. Just close them if you don't want or need them.

[Revelate]

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@Anonymous wrote:
I to feel the 'closed by....' is much to do about nothing..

This is old school theory, that is long outdated in reality....

Just like the notes on a repo
Volunteer not volunteer....It's a freaking REPO, period!

The thought pattern "back in the day" might have been that when an UWer had a tweener this info may hold some weight in rounding a marginal file up or down

But in today's reality the computers are PROGRAMMED to read CODES...We all know this to be true....

These places move millions of pieces of data by the hour...Nobody is "reading" the details of whom closed the account
Either it's opened or closed, period....Nobody has Time to give a tuck if it were closed on a Tuesday or a Saturday...It's a VOLUME business folks, it ain't 1971!

Even back in the days when I did manual UW ...I couldn't tell ish from ' closed by grantor' per se

Was the payment history up to par?
That's all an UW gives an ish about, otherwise you can only GUESS what the F that meant
Was there an argument or a parking space, did someone hit on somebody's wife?

Who the H knows, what the F happened and who the F cares unless it's about the payments?

And that would be reflected elsewhere, so again the notes are USELESS....

You really think a lender gives that much a ish as to if the repo was voluntary or not....Either way it's still a bad loan and their in the business of avoiding the RISK of bad loans duh!
_____________________

*To the OP it sounds like there is a reason you want to purge yourself from any and all joint accounts with the DW and if it's serious enough for you to take that position, just pull the plug and move on.

'They' say is a bunch of rubbish
The positive juice of those accounts will be on your profile for years and if you're left with other accounts and your profile is otherwise fine you won't have any real issues whatsoever

As a matter of fact purging all those extra 'possible' liabilities might actually make your profile even more attractive the next time you app for something, as the new would be lender doesn't see such a long line 😎

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CBC (closed by consumer) is yet another code

It's impossible to state whether or not some algorithm is looking at that, but blithely assuming it doesn't make any difference isn't necessarily accurate... cards can be closed by credit grantor for negative reasons that don't show up in the remarks nor the tradeline details, and yes lenders do care about such things (obviously or the original lender wouldn't have closed it in the first place).

To be fair I'm of the opinion is it doesn't matter much, but decrying it as an old school and irrelevant viewpoint, is specious.