Debating on closing two CC

[Anonymous]

I've been in the processing of rebuilding my credit since filing BK10 09/09. I still have a few dings here and there but my score has been making great improvement within the last year after aggressively attacking my CRs and lowering my overall UTL. My current CCs and CLs are:

Delta Skymiles AMEX - 10k

Barclays - $350 (will NOT offer a CLI in over 7 years)

Cap One - 2x $850/$650 (combining them as soon as the last pmt posts) 

Old Navy - $200 (CLD from $500)

NFCC - $2k

First Premier - 2x$700

Macys - $1,200

Most of my cards are all paid off with the exception of AMEX and Macys. Should have Macys paid off within a month and AMEX under 30% UTL. 

I want to close out the worst cards in this bunch BUT some of them I have been with since my BK and don't want it to negatively impact my score. What should I do? Close Barclays since they refuse to give me a CLI and maybe one of the First Premiers? Or both? Old Navy? 

[Anonymous]

Closing credit cards won't hurt your credit score per se. It's the utilization you'll have after closing them that could have a negitive effect.
Example
CC 1 100$ SL 0 reporting
CC 2 100$ SL 50 reporting
200/50= 25% UTI
now let's say you close 1 that's a zero balance. That brings your UTI to 50%. That's the factor I look at when closing a card. What will my UTI be if I close x amount. I try and say between 1-9% for the max possible points with 1 card reporting a small balance under 10%. Although it doesn't always work out that way UTI also has no memory. So as the UTI goes down your score will go up.

[EAJuggalo]

Which of those cards are costing you money to keep open?  Don't those first premier cards have a monthly fee as well.  I'd definitely close those.  I might close Barclay's out of spite.  Old navy, since you already have it I would keep it, they do have some decent cardholder offers occasionally.  With the AMEX, NFCU and Macy's you really could close everything else if you wanted to.

[Anonymous]

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@Anonymous wrote:

I've been in the processing of rebuilding my credit since filing BK10 09/09. I still have a few dings here and there but my score has been making great improvement within the last year after aggressively attacking my CRs and lowering my overall UTL. My current CCs and CLs are:

Delta Skymiles AMEX - 10k

Barclays - $350 (will NOT offer a CLI in over 7 years)

Cap One - 2x $850/$650 (combining them as soon as the last pmt posts) 

Old Navy - $200 (CLD from $500)

NFCC - $2k

First Premier - 2x$700

Macys - $1,200

Most of my cards are all paid off with the exception of AMEX and Macys. Should have Macys paid off within a month and AMEX under 30% UTL. 

I want to close out the worst cards in this bunch BUT some of them I have been with since my BK and don't want it to negatively impact my score. What should I do? Close Barclays since they refuse to give me a CLI and maybe one of the First Premiers? Or both? Old Navy? 

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As another poster stated, be sure that your balances are paid down before you close any of your cards. But I would get rid of those two First Premier's and Barclays. You did not indicate what your current scores are or if you have any recent lates after the bky (which is getting near 8 years old). 

I am assuming NFCC is NFCU, if so, try to get that limit up. I am not sure if it is brand new or what; but if you once the card is 90 days old and you've been through an account review, click the CLI increase button to get that limit up. 

[Anonymous]

My goal is to get rid of both First Premier and Barclays bc they are the worst of the litter - highest interest rates and annual fees. I wanted to post my FICOs with my OP but myFICO account is having some set-up issues... I know TU is 623.

Over the past few years, I do have a few lates that I'm trying to resolve 2 being from First Premier and two from Capital One. All others are on closed accounts from years ago. All negative items associated with my BK drop off this year (thankfully) putting me in an even better position. 

My NFCU just upgraded me from a secured acct to unsecured under the 6 month mark and after reading countless posts reg. asking for a $25k CLI, I plan on that as well. 

Should I wait until I get the CLI before closing or just do it now. As mentioned, all accts are paid off except AMEX and Macys. I have about $8k on AMEX and $300 on Macys. Paying off Macys within the next 30 days. I only keep Macys and ON for the customer perks.

Also, I just thought of this...I believe both my Capital One cards have annual fees... I opened both in 2010 (one was bought out by CO)... 

[Anonymous]

Hi OP,

I'd agree with the others to eventually close any subpar cards such as First Premier, but in doing so at a time when it won't impact your utilization heavily. Closing out cards that you don't use or need and which have annual fees also seems wise.

If you have an 8k balance out of 10k on your American Express card, that is very high utilization so I'd suggest getting that in check before requesting CLI's or closing other cards. As other mention, closing out cards will affect your overall utilization when you are carrying balances. It will also affect the number of cards you have with balances, with factors into your credit score as well.

I'm guessing that the Old Navy CLD would either be due to lack of use (Synchrony does CLD when cards are not used often), or a FICO score below 640, which Synchrony seems to be sensitive to based on myfico member reports.

I believe your TU score of 623 may be the reason you are not seeing any CLI from Barclay's, as that would be a rather low TU score to expect a CLI from most lenders.

Recent lates within the past few years that you mention may also be an additional challenge to receiving CLI's, and may possibly factor into the CLD as well.

[Anonymous]

I figured as much which is why I've been hesitant on closing any accounts. My score has gone up 100 pts in a year and my goal is to get to 700 by the end of the year... still unsure if I can pull that off but I'm remaining optimistic at this point. I'll close the 5 accounts and work on getting CLIs on NFCU and AMEX over the next 3-6 months.

[Anonymous]

Keep up the good work, OP! You are on the right track.

[Anonymous]

Close both of the First Premiers. You are past the point of paying for cards, and they are a rip off. I used them, and many have... and they play a purpose in rebuilding.... but once you get to where you don't need them... close them.

Barclays I am not a fan of at all... so if you want to close a 3rd I would do them.

Kept the others. Eventually combine your CapOne cards.

Why did ON CLD you?

[AverageJoesCredit]

Your Navy card should explode once you start getting those clis with them. Im with Humu in that take care of your Amex balance first before deciding on closing anything. Once thats more reasonable, look over each card and determine if there is valid need for it and do you see any room for growth. Very nice job on your progress