Help me feel good about closing my secured cards...

[SouthJamaica]

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@masscredit wrote:

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@SouthJamaica wrote: I think it makes sense to close them, and apply the freed up money to (a) paying down any unpaid balances on the other cards, and (b) making you money in high yield savings accounts.

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I do AZEO most months so I don't carry balances unless I let them report on purpose. This month I'll only have about $20 reporting on one card after they call close. Want to see what my current high scores are. Hoping for 5 more points on EQ. I have a list of banks offering 4.5%-5%. I'm going to take advange of that.

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That's great. I'm envious

[masscredit]

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@SouthJamaica wrote:

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@masscredit wrote:

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@SouthJamaica wrote: I think it makes sense to close them, and apply the freed up money to (a) paying down any unpaid balances on the other cards, and (b) making you money in high yield savings accounts.

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I do AZEO most months so I don't carry balances unless I let them report on purpose. This month I'll only have about $20 reporting on one card after they call close. Want to see what my current high scores are. Hoping for 5 more points on EQ. I have a list of banks offering 4.5%-5%. I'm going to take advange of that.

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That's great. I'm envious

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I learned from my BK. I don't buy things that I don't have the money for. I don't even like carrying a balance if it will be at 0%. That rough period really drilled it into me.

[danzig47]

I agree with everyone else to close those accounts, but instead of a HYSA I would suggest a brokerage account. If you keep it as cash, you'll make the same as a HYSA (for example, Fidelity SPAXX currently yiedling 4.98%), and you will have the flexibility to get more agressive when the equities markets turn around.  

[masscredit]

I believe the closed cards will still be part of my history for 7 years?

[Anonymous]

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@danzig47 wrote:

I agree with everyone else to close those accounts, but instead of a HYSA I would suggest a brokerage account. If you keep it as cash, you'll make the same as a HYSA (for example, Fidelity SPAXX currently yiedling 4.98%), and you will have the flexibility to get more agressive when the equities markets turn around.  

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Yes, but unless you are really into precise market timing, having it in a HYSA isn't so different.  When the time comes you can move the money to a brokerage account (or open one if you don't have one) fairly quickly and buy those equities.   That said, a financial planner did suggest keeping it in SPAXX or similar as the rates are fairly competitive (lots of HYSA are 5.25+% now, with one at 5.5%)

[masscredit]

I closed Andrews and OpenSky today. They helped me get my scores into the mid-upper 600s in just over a year but it is time to move on. I'm going to hang onto the SDFCU card until it reaches 2 years. I'd like to maintain a relationship with them so hoping it graduates then. If not, that will be closed too.

[TheRedHat]

So do you feel good, masscredit? 

[Gonzozap]

As for SDFCU, it took 3 yrs before my card was unsecured.  I started with a $500 secured card.  Now my unsecured limit is $14k.  They increase it all the time.  I use the card a lot. Glad I never closed this account.