Getting rid of 3

[devilnic]

I'm thinking of getting rid of my Home depot, Fingerhut, and Walmart cards. I hate to do the Walmart card because of the age but it's just sitting in my sock drawer and causing my insurance rates to go up. Fingerhut the same thing it has a $4000 cl. Home depot not so much it's like 3 years old but is only $1000 cl. But I still have amazon, overstock and vs if I can these others. I guess I'm thinking this too because I just recently got American express, chase, and discover #2. I guess i just don't want to see a dip in scores too. I guess the big question to ask is Will this hurt me if I'm wanting to get a mortgage within the next 2 years?

[Anonymous]

To answer your question. 

No it won't hurt you if you want to get a mortage in the next two years. 

Now I have a question. 

How does leaving this card open have anything to do with your insurance?

[Remedios]

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@devilnic wrote:

I'm thinking of getting rid of my Home depot, Fingerhut, and Walmart cards. I hate to do the Walmart card because of the age but it's just sitting in my sock drawer and causing my insurance rates to go up. Fingerhut the same thing it has a $4000 cl. Home depot not so much it's like 3 years old but is only $1000 cl. But I still have amazon, overstock and vs if I can these others. I guess I'm thinking this too because I just recently got American express, chase, and discover #2. I guess i just don't want to see a dip in scores too. I guess the big question to ask is Will this hurt me if I'm wanting to get a mortgage within the next 2 years?

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If you're talking about "insurance" going up in terms of CBIS, store cards are causing less increase than new accounts. LN considers accounts new for two years and there is a penalty associated with them assessed based on how  many and how recent. 

If you have negatives on your CR, there is penalty for that, too 

Then, there is your driving record. 

The hype over LN and CBIS is borderline hysteria, because no one has really quantified the increase in premiums. 

If you're not using cards, feel free to cancel. If you're using them, CBIS  is not the reason for cancellation.  

If you do decide to cancel, please come back and update on premium difference. 

My premiums did not change after store card was added, nor did they change after card was cancelled. I wanted to test this particular theory and received a new quote. It was $3.00 more than existing policy (obtained while store card was opened, no new accounts since last renewal, clean driving record or at least it was till I hit the ambulance. Wasn't my fault!) 

[M_Smart007]

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@devilnic wrote:

I'm thinking of getting rid of my Home depot, Fingerhut, and Walmart cards. I hate to do the Walmart card because of the age but it's just sitting in my sock drawer and causing my insurance rates to go up. Fingerhut the same thing it has a $4000 cl. Home depot not so much it's like 3 years old but is only $1000 cl. But I still have amazon, overstock and vs if I can these others. I guess I'm thinking this too because I just recently got American express, chase, and discover #2. I guess i just don't want to see a dip in scores too. I guess the big question to ask is Will this hurt me if I'm wanting to get a mortgage within the next 2 years?

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I closed my home depot ..same scenario ..closed some others recently. many more to go.

seems like life is less complicated.

[pinkandgrey]

Go ahead and close them. You'll be glad you did. Your score won't plummet--trust me. I closed half of my cards at one time awhile back and my score really barely moved. Plus, things are much simpler without the unnecessary cards! 

As for the mortgage, two years is more than enough time for your score to "recover" from any potentially lost points.

Good luck!!

[devilnic]

I've heard that store cards or too many of them factor into your insurance rates. Don't know if it's over-hyped or not. I have a clean driving record and have been with the same company for 13 years so not sure how it affects this particular scenario. I just thought I'd get some input from the good folks on this forum.

[Remedios]

If you go ahead and get quotes from different insurance companies, some will be significantly lower than your current one. 

I was with progressive for 10 years and never bothered checking for other quotes because I assumed I got the best rate.  

I was so wrong I wanted to send myself a bill and kick rocks for a few hours. 

Sticking with the same auto insurance company for so long is what's driving the cost, not store cards. You're free to close them if you dont use them. 

Give it a try and dont try just one 

Good luck

[pinkandgrey]

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@devilnic wrote:

I've heard that store cards or too many of them factor into your insurance rates. Don't know if it's over-hyped or not. I have a clean driving record and have been with the same company for 13 years so not sure how it affects this particular scenario. I just thought I'd get some input from the good folks on this forum.

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Definitely over-hyped IMO. If you don't need the store cards, close them. It's that simple. Good luck!

[iced]

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@devilnic wrote:

I've heard that store cards or too many of them factor into your insurance rates. Don't know if it's over-hyped or not. I have a clean driving record and have been with the same company for 13 years so not sure how it affects this particular scenario. I just thought I'd get some input from the good folks on this forum.

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Depends on where you live. Here in MA (and CA/HI), it's illegal for insurance companies to use credit scores/reports as a factor in determining rates.