Just looking for some thoughts and advice

[Np1791]

So I currently have two auto loans and five credit cards. Two of those credit cards are non store cards and then I have the Citi Costco card which a store card but I don’t really care. That is probably my best card rewards wise. It’s also my daily. Low rate but I pay it off before the statement hits anyway. Then I have Ashley Furniture and Care Credit. I’m thinking of closing those two cards because they don’t offer any rewards only special finance which I can use Amex or Discover for that. Amex is currently offering me up to 9 months of finance. With a fee of course but it beats interest and then Discover usually always offers balance transfers. Just want to get some thoughts on whether I should decrease my credit from 60K to 35K with my current debt situation. I will be making a big payment soon that will drop Discover down to 12,400 and after that I’ll be making 1K monthly payments. So aggregate I would be at 35% and it would just decrease from there. At one point I had 22 credit cards. Mostly store cards and as of late I’ve been thinking more quality over quantity and will be happy with my three card line up of Discover IT Miles, Amex BC, and Citi Costco.

[Anonymous]

Since it doesn't cost anything to keep them open, I would wait until Discover is paid down significantly.

[sarge12]

First of all, if the Citi Costco card is the same one I have...it is a Citi Costco Visa co-branded card which is not a store card. A store card could only be used at that store. Second...when you say reduce your credit, do you mean reduce your credit limits? It is almost never advantageous to lower limits or close cards that have no annual fee. It is almost always advisable to pay off as much credit card debt as possible till you can eventually PIF all cards every month. I would never advise anyone to open a care credit card or ashley furniture card in the first place, but once opened I could not really advise closing them either, just sock drawer them to prevent a utilization hit. In your profile the discover card utilization is way too high and deserves attention. Your installment loans are also too high as a percentage of original loan amount, but time will take care of that. I hate advising anyone to keep Synchrony bank cards open but right now you really need their credit limits to prevent a way too high overall utilization. Aggregate utilization over 28.99% will result in a major score drop. Right now it looks like you are at about 25% so you need those limits at least until you get the discover down below 50%. Utilization is a point in time metric however so really matters when applying for new credit so if your aim is to prevent temptation and do not care if your score drops a lot then act accordingly. I really do not know what you are trying to accomplish with reducing your credit limits by closing cards.

[Anonymous]

With every account you close, you utilization rises. And based on your Discover balance, that isn't something that you can afford to happen ATM. It may incur action from the CCC before you want it. Having so many recent closed accounts may also have a negative affect. I think you should probably stay where you're at for the time being, and just pay down heavily on you balances.

[Anonymous]

Care Credit also comes in two varieties, "store card" and major CC. I got Care Credit when I got LASIK about 4-5 years ago but then a year or two ago it became a MC (or Visa, I don't remember). If you have what I have, again it's not a store card. And while it's with Synchrony, I don't know that Care Credit is really technically a store card since you can use it at different places (dr. vet, etc.) I wouldn't recommend jumping thru hoops to keep it open if you don't currently see a need for it, but I wouldn't go thru the work of closing it (unless it's a tiny unuseable CL, then maybe). 

[Np1791]

I’m just going to kind of touch on everything people have replied with. First off thank you all for giving me your great advice! In terms of Discover having a high balance it’s not something they are not used to. I transfer a lot to them to save on interest and also try to trigger a CLI which I did a few days ago. I went from 7K to 15.5K while having a 6.9K balance on it. It hasn’t take a hit to my credit or big enough hit that my score can’t rebound from. I have a clean profile and scores hover around 680-700. I’m not looking to apply for anymore credit as I have said before looking for less not more credit cards. I don’t need 60K in limits. I don’t need 35K in limits either but I like my Discover, Amex, and Citi cards that I have and will keep all three because I have use for them. I will just continue to grow them. As far as cutting down too many cards too fast. I didn’t go from 22 to 5 in the last month. This has been over a year. I never had high balances and my score never took a hit or big hit. My two auto loans that are high are because I just got them last year so I can’t have them paid half way already. My CareCredit is not a visa or MasterCard. Is only useable for dentist, vet and what not. No rewards so I’m not really getting anything back from them besides the finance which I can get somewhere else with rewards. My utilization is going to be around 80% on Discover regardless of me keeping CareCredit and Ashley furniture or not. Now if I keep them overall utilization will be around 21% roughly and if I don’t it would be 35% more or less. Either one is not truly bad and it would go down substantially each month as I will make 1K payments. I’m not too worried about a temporary utilization hit if any.

[sarge12]

I think you are missing my point.....closing those two cards will lower your score, affecting both utilization and AAoA. Keeping them open but never using them costs you nothing, zero, ziltch. When there is a downside to taking that action, with no upside, you should consider that. These cards will show on your credit report even if closed, so the negative effect of having a subprime card will still exist...that ship has sailed. But when you get rejected for a truly premium card you want due to you credit balances are to high in relation to your credit limits on existing cards...well, I tried to warn you, but some have to learn the hard way. Good luck to you whichever way you proceed.

[AverageJoesCredit]

Looks like you know what you want to do and if it works for you that's all that matters. Lol, I wish I could afford a 40k car but alas I have too many issues just trying to pay my debt. If I ever I can get my debt to zero, I think I'm gonna pick 3 ccs and dump the rest. This game can be frustrating for many reasons and I find myself hitting the s.o.g.o.t.p moment

Since you know how you are going to pay your debt and utilities is not your concern, drop, squat and dump lol

[Np1791]

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@sarge12 wrote:

I think you are missing my point.....closing those two cards will lower your score, affecting both utilization and AAoA. Keeping them open but never using them costs you nothing, zero, ziltch. When there is a downside to taking that action, with no upside, you should consider that. These cards will show on your credit report even if closed, so the negative effect of having a subprime card will still exist...that ship has sailed. But when you get rejected for a truly premium card you want due to you credit balances are to high in relation to your credit limits on existing cards...well, I tried to warn you, but some have to learn the hard way. Good luck to you whichever way you proceed.

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I appreciate your help. I don’t see it affecting my AAoA as the history stays for 10 years roughly. I’m also not looking to apply for any credit cards since I have no need for anymore. I appreciate your advice and it makes sense but my profile is pretty established and I don’t believe the subprime cards affect me much. 

[Np1791]

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@AverageJoesCredit wrote:
Looks like you know what you want to do and if it works for you that's all that matters. Lol, I wish I could afford a 40k car but alas I have too many issues just trying to pay my debt. If I ever I can get my debt to zero, I think I'm gonna pick 3 ccs and dump the rest. This game can be frustrating for many reasons and I find myself hitting the s.o.g.o.t.p moment

Since you know how you are going to pay your debt and utilities is not your concern, drop, squat and dump lol

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Pshh come on spoil yourself AJC! I like the three card way. Easy to track and keeps you away from trouble. Okay you need to explain s.o.g.o.t.p to me lol I shall! Lol