Closing multiple credit card accounts?

[JMMD]

My husband and I filed BK in 2011, were discharged Feb 2012. We are building credit with the hope of buying a home soon. We hoped this March but reality is it will probably be April 2015. During the rebuild process we opened various cards. I am wondering if we shoudl close the ones we aren't using and instead try to raise the CL on the ones we do use? However,  I am worried how this might affect my credit history age. These are the cards we have attained since March 2013. I marked which ones we use. We always PIF.

Walmart $600 mine-use often)

Walmart $400 (his use often)

UNsecured visa $500( joint-use this card the most) ( was secured but switched to UN secured last month)

Amazon $700( mine never use)

Amazon $600 ( his use often) b/c prime account)

JCPenny $500 ( mine never use)

Dressbarn $500 ( mine never use)

Lowes $300 ( mine-brand new)

Paypal $600 ( mine use rarely)

I appreciate any advice!
Thanks!

[SunriseEarth]

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@JMMD wrote:

My husband and I filed BK in 2011, were discharged Feb 2012. We are building credit with the hope of buying a home soon. We hoped this March but reality is it will probably be April 2015. During the rebuild process we opened various cards. I am wondering if we shoudl close the ones we aren't using and instead try to raise the CL on the ones we do use? However,  I am worried how this might affect my credit history age. These are the cards we have attained since March 2013. I marked which ones we use. We always PIF.

Walmart $600 mine-use often)

Walmart $400 (his use often)

UNsecured visa $500( joint) ( was secured but switched to UN secured last month)

Amazon $700( mine never use)

Amazon $600 ( his use often) b/c prime account)

JCPenny $500 ( mine never use)

Dressbarn $500 ( mine never use)

Lowes $300 ( mine-brand new)

I appreciate any advice!
Thanks!

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Closing accounts won't affect your AAoA until the reported TLs fall off your CRs (that takes ~10 years).   There are some that suggest keeping accounts open for at least 2 years, so that way the accounts are no longer considered "new."    Some also feel that there's no reason to cancel accounts, unless they are costing money.  Putting cards in the SD requires some maintenance.   Some don't mind this, but some do.  It's really a matter of personal choice.

BTW, if you need use for your JCPenney card, both CVS and Rite Aid accept the JCP card as payment.  I use mine a few times a month at those two stores. 

[user5387]

Closing cards has no immediate effect on AAoA.  The effect comes later (like 10 years), when the closed account drops off your reports.  At that time, you lose the accumulated age for the particular account, and the effect on AAoA would depend on how many accounts you have at that point.

Closing cards will reduce your overall limits.  If your utilization is low, this may not matter.  If you have significant utilization, this might be a big deal.

If thinking about a mortgage, I'd suggest picking around 3-5 accounts to focus on and build up in whatever way you can.

You might also talk to some local CUs and see what they can do for you in the long term, re getting higher limits.

You can also buy your way to higher limits by putting a large deposit on a secured card.

[JMMD]

Thank you both. I think I am going to close the Lowes, JCPenny, Dressbarn My amazon and focus on building the other cards up instead. I appreciate the help!

[BootStraps]

Unless they have changed the policy, you can have up to four people at the same address using the same Amazon Prime. That means that you should be able to link the prime to your Amazon account so you can use your Amazon card.

He has to invite you if I remember correctly.

[tattooedhusker]

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@JMMD wrote:

Thank you both. I think I am going to close the Lowes, JCPenny, Dressbarn My amazon and focus on building the other cards up instead. I appreciate the help!

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I would consider keeping the Lowes card open, it is a pretty quick grower and could be the bridge to higher limits down the line

[BootStraps]

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@tattooedhusker wrote:

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@JMMD wrote:

Thank you both. I think I am going to close the Lowes, JCPenny, Dressbarn My amazon and focus on building the other cards up instead. I appreciate the help!

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I would consider keeping the Lowes card open, it is a pretty quick grower and could be the bridge to higher limits down the line

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+1

Home improvement store cards are also very useful when you own a house...

[JMMD]

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BootStraps wrote:

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tattooedhusker wrote:

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JMMD wrote:

Thank you both. I think I am going to close the Lowes, JCPenny, Dressbarn My amazon and focus on building the other cards up instead. I appreciate the help!

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I would consider keeping the Lowes card open, it is a pretty quick grower and could be the bridge to higher limits down the line

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+1

Home improvement store cards are also very useful when you own a house...

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I did close it for right now. I am going to try to use the visa more often and if we need anything at Lowes, I can just use that. I'd love to see thie visa get a CLI as it's through the bank we hope to use when we do buy a home.

[SunriseEarth]

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@JMMD wrote:

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@BootStraps wrote:

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@tattooedhusker wrote:

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@JMMD wrote:

Thank you both. I think I am going to close the Lowes, JCPenny, Dressbarn My amazon and focus on building the other cards up instead. I appreciate the help!

---

I would consider keeping the Lowes card open, it is a pretty quick grower and could be the bridge to higher limits down the line

---

+1

Home improvement store cards are also very useful when you own a house...

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I did close it for right now. I am going to try to use the visa more often and if we need anything at Lowes, I can just use that. I'd love to see thie visa get a CLI as it's through the bank we hope to use when we do buy a home.

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Yeah, I'd agree closing that one was a mistake.  Doesn't Lowes have a 5% discount for using their card?  That would match or beat most cash back cards.

[JMMD]

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@SunriseEarth wrote:

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@JMMD wrote:

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@BootStraps wrote:

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@tattooedhusker wrote:

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@JMMD wrote:

Thank you both. I think I am going to close the Lowes, JCPenny, Dressbarn My amazon and focus on building the other cards up instead. I appreciate the help!

---

I would consider keeping the Lowes card open, it is a pretty quick grower and could be the bridge to higher limits down the line

---

+1

Home improvement store cards are also very useful when you own a house...

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I did close it for right now. I am going to try to use the visa more often and if we need anything at Lowes, I can just use that. I'd love to see thie visa get a CLI as it's through the bank we hope to use when we do buy a home.

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Yeah, I'd agree closing that one was a mistake.  Doesn't Lowes have a 5% discount for using their card?  That would match or beat most cash back cards.

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Oh shoot.