Help me decide how to proceed with my credit cards!

[Anonymous]

Hi all,

Hoping you can all help me make a decision on whether or not I consolidate my credit card limits.

My first 2 credit cards, accounts which were opened over 8 years ago, were cancelled years ago due to lack of usage. They both still sit on my credit report as closed.

The only 3 accounts on my name at all, are credit cards.  Currently, my oldest active account- an AMEX charge card- was opened in 2011.

In Fall 2015, I opened a Chase Sapphire Preferred card ($95 annual fee), and was given $20k limit. About a year later, Fall 2016, I opened a Chase Sapphire Reserve ($450 annual fee) card. Chase appeared to have given me the same $20k limit on this card, but confusingly kept sending me new documentation via mail (and as I recall, e-mail) about this limit changing. Ultimately, the net was they split the $20k credit I was given with the Preferred card in half, so each had only a $10k limit...read: no new credit to me.

Needless to say, this was frustrating.

Since I don't have any additional credit available to me with this new account, I don't really see it as THAT much value to me in the near term. And since I prefer the Reserve card to the Preferred, I'm considering the following:

Consolidating the $20k credit on my older Chase account (to maintain the more beneficial AAoA), and upgrading that card to the Reserve I want...while also canceling the newest card entirely.

Alternatively, I can move most of the credit to the new Account that is currently Reserve card I want, and downgrade the Preferred to a card with no annual fee if having this latest card I open helps me in some way.

Generally speaking, I'd prefer to have 2 credit cards open at this time rather than the 3, but I'm ready to hear why I should keep all 3 or if there's a better option than I suggested.

And FYI my FICO score is above 720 since I've ever checked it (last 3-4 years).

Thank you all in advance!

[Anonymous]

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@Anonymous wrote:

Hi all,

Hoping you can all help me make a decision on whether or not I consolidate my credit card limits.

My first 2 credit cards, accounts which were opened over 8 years ago, were cancelled years ago due to lack of usage. They both still sit on my credit report as closed.

The only 3 accounts on my name at all, are credit cards.  Currently, my oldest active account- an AMEX charge card- was opened in 2011.

In Fall 2015, I opened a Chase Sapphire Preferred card ($95 annual fee), and was given $20k limit. About a year later, Fall 2016, I opened a Chase Sapphire Reserve ($450 annual fee) card. Chase appeared to have given me the same $20k limit on this card, but confusingly kept sending me new documentation via mail (and as I recall, e-mail) about this limit changing. Ultimately, the net was they split the $20k credit I was given with the Preferred card in half, so each had only a $10k limit...read: no new credit to me.

Needless to say, this was frustrating.

Since I don't have any additional credit available to me with this new account, I don't really see it as THAT much value to me in the near term. And since I prefer the Reserve card to the Preferred, I'm considering the following:

Consolidating the $20k credit on my older Chase account (to maintain the more beneficial AAoA), and upgrading that card to the Reserve I want...while also canceling the newest card entirely.

Alternatively, I can move most of the credit to the new Account that is currently Reserve card I want, and downgrade the Preferred to a card with no annual fee if having this latest card I open helps me in some way.

Generally speaking, I'd prefer to have 2 credit cards open at this time rather than the 3, but I'm ready to hear why I should keep all 3 or if there's a better option than I suggested.

And FYI my FICO score is above 720 since I've ever checked it (last 3-4 years).

Thank you all in advance!

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Three is the magic number of revolvers to maximize that component of your score. You could always move to two cards with Chase though and get a third from another provider.

[Aduke1122]

Hey Op it may benefit you more to have 3 revolving lines of credit for optimal fico scoring you atleast need 3 open revolving accts and one open installment loan . It does suck that they did not even ask and just split your CL like that with the new card . I would have been upset by this also

[SouthJamaica]

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@Anonymous wrote:

Hi all,

Hoping you can all help me make a decision on whether or not I consolidate my credit card limits.

My first 2 credit cards, accounts which were opened over 8 years ago, were cancelled years ago due to lack of usage. They both still sit on my credit report as closed.

The only 3 accounts on my name at all, are credit cards.  Currently, my oldest active account- an AMEX charge card- was opened in 2011.

In Fall 2015, I opened a Chase Sapphire Preferred card ($95 annual fee), and was given $20k limit. About a year later, Fall 2016, I opened a Chase Sapphire Reserve ($450 annual fee) card. Chase appeared to have given me the same $20k limit on this card, but confusingly kept sending me new documentation via mail (and as I recall, e-mail) about this limit changing. Ultimately, the net was they split the $20k credit I was given with the Preferred card in half, so each had only a $10k limit...read: no new credit to me.

Needless to say, this was frustrating.

Since I don't have any additional credit available to me with this new account, I don't really see it as THAT much value to me in the near term. And since I prefer the Reserve card to the Preferred, I'm considering the following:

Consolidating the $20k credit on my older Chase account (to maintain the more beneficial AAoA), and upgrading that card to the Reserve I want...while also canceling the newest card entirely.

Alternatively, I can move most of the credit to the new Account that is currently Reserve card I want, and downgrade the Preferred to a card with no annual fee if having this latest card I open helps me in some way.

Generally speaking, I'd prefer to have 2 credit cards open at this time rather than the 3, but I'm ready to hear why I should keep all 3 or if there's a better option than I suggested.

And FYI my FICO score is above 720 since I've ever checked it (last 3-4 years).

Thank you all in advance!

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I think you should just leave it as is, and go with the 3 cards.

[Anonymous]

Thank you @SteelerNYC @SouthJamaica!

@Aduke1122...if I preferred to have a different 3rd card (e.g. from a different bank or provider), is my idea of consolidating with my older account and upgrading sound?

[happypill]

The key question here is, have you earned the sign-on bonus for the CSR yet?  If so, then feel free to conlidate whichever way you want.  If you haven't earned those rewards yet (and those rewards are one of the key features of the card), then consolidating that into your older account will probably nullify the opportunity.

[Anonymous]

You should keep all three open as others have said to optimize your credit score. I would convert the CSP to either a Freedom (5% rotating categories) or the Freedom Unlimited (1.5% on everything). This way you can maximize you rewards earning potential with Chase. You can also move $5000 from the CSP to the CSR (before or after the product change). This will leave you with $5000 on the CSP so when you change it to the Freedom or Freedom Unlimited it will remain a Visa Signature.