Closing multiple Credit Cards

[jim44]

Many have posted on this forum about the effects on utilization and AAoA of closing credit cards that have been used to rebuild credit that are no longer needed.  My question is by closing say over 5 or 6 credit card accounts, would this spook the banks that I currently have cards with?  I could spread out the closures over a few months.  I really don't need over 100k in available credit and some of my current cards are doing auto CLIs.  As an example I have two Walmart reward cards with Capital One.  The store card I never use, instead I use the Walmart MC.  

Thanks for all replies and comments.   

[simplynoir]

To answer your general question no it should not spook the other banks you currently have credit relationships with. The only real way I can see them being concerned if your utilization is high enough for them to be worried that the closures were not customer-initiated but were the banks trying to cut their losses. Then they might follow suit as a result. An example would be something like balance chasing. Since you're just trying to cut the fat as it were from your credit card portfolio as long as your utilization is in check it should be fine there

With regards to AAoA closed credit cards will still report 7-10 years on your credit profile, in some cases even beyond that though you won't know when they'll close til it just happens randomly one day. By then assuming you haven't gotten app happy the cards you plan to hold on to will be sufficently old enough to take any aging hits from removed closed accounts

[RSX]

Utilization is the only factor when you close them - AAoA will NOT be impacted for approx 10 years

i say approx because i have heard of some being dropped at 8 years - and more stories of them continuing past the 10 year mark

i would say start closing  - especially the dupe Walmart one

i personally would do 2 every month - but that is probably not even necessary - you could do them all at once

[jim44]

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@simplynoir wrote:

To answer your general question no it should not spook the other banks you currently have credit relationships with. The only real way I can see them being concerned if your utilization is high enough for them to be worried that the closures were not customer-initiated but were the banks trying to cut their losses. Then they might follow suit as a result. An example would be something like balance chasing. Since you're just trying to cut the fat as it were from your credit card portfolio as long as your utilization is in check it should be fine there

With regards to AAoA closed credit cards will still report 7-10 years on your credit profile, in some cases even beyond that though you won't know when they'll close til it just happens randomly one day. By then assuming you haven't gotten app happy the cards you plan to hold on to will be sufficently old enough to take any aging hits from removed closed accounts

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Thanks for the advice.  My utilization is at 4% most balances from store cards ie: Home Depot etc.  I don't plan on making any large purchases in the near future so it should go down even lower.  The auto CLI's help too. 

[gdale6]

I would whack them over a 2 month period of time, start with the ones that will report the soonest.

[SouthJamaica]

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@jim44 wrote:

Many have posted on this forum about the effects on utilization and AAoA of closing credit cards that have been used to rebuild credit that are no longer needed.  My question is by closing say over 5 or 6 credit card accounts, would this spook the banks that I currently have cards with?  I could spread out the closures over a few months.  I really don't need over 100k in available credit and some of my current cards are doing auto CLIs.  As an example I have two Walmart reward cards with Capital One.  The store card I never use, instead I use the Walmart MC.  

Thanks for all replies and comments.   

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If they have annual fees, then by all means close them; if they don't have annual fees, then be selective about it.

But proceed slowly and gradually.