cancel
Showing results for 
Search instead for 
Did you mean: 

Low limit CCs

tag
Anonymous
Not applicable

Low limit CCs

Greetings,


I know this topic has been brought up before, but I found way too many opinions.

My credit scores are decent (Fico 8 - 708-740)

I have an Amex Plat where I have put over $50K on, along with a Business Amex plat with over $100K balance.

I have a chase sapphire, $32K limit, and a few other cards ranging between $2500-7500 limits.


I have a couple older cards from when I had credit issues:

Amex Optima: $800 (have had 8 years)

Credit One: $1500 (have had about 6 years with a 8.00 monthly fee)

 

Based on this below, should I keep these crap cards to keep 'average age up', or does my 'average limit' get hurt too much (or is average limit even relevant?) 

 

Average Age: 7 yrs 5 mos

Oldest Account: 17 yrs 11 mos


Thank you,

 

David

 

Message 1 of 8
7 REPLIES 7
HeavenOhio
Senior Contributor

Re: Low limit CCs

Welcome, @Anonymous. Smiley Happy

 

Close them. The only time to really consider otherwise is if one of the cards in question is far and away your oldest account. Credit One in particular should be closed simply because it isn't a very good bank.

Message 2 of 8
iheartwings
Valued Contributor

Re: Low limit CCs

Close the Credit One because you're paying $96 a year without necessarily getting any use from the card.

 

The Optima if without any fees you could keep open.

 

Keep in mind both accounts contribute to you Average Age of Accounts (AAoA) for 10 years after closure. 

Message 3 of 8
K-in-Boston
Credit Mentor

Re: Low limit CCs

Welcome to the forums!  Credit One, close without question.  It's younger than your average age of accounts so continuing to keep it open will just cause you to keep paying.  If your oldest account of 17+ years is still open (Optima is a "second chance" card and Credit One is Credit One, so not sure what issues may have happened before), you could close the Optima if you want since it's right about your AAoA.  The cards will remain on your credit reports and continue to contribute to aging for up to 10 years.

 

There is certainly some anecdotal evidence that higher limits beget higher limits, but simply having some lower limit cards isn't going to hurt.  I have a $500 American Express Blue card that I've had for 18 years but don't use and moved almost the entire credit line to other Amex cards some time ago.  It has not caused me to have issues with getting higher starting lines (as much as $40k on a recent approval).

Message 4 of 8
AzCreditGuy
Established Contributor

Re: Low limit CCs

Credit One is how do you say it shady AF lol, for fun I applied with them for pre-approval before my real credit spree, they denied me stating 462 Fico score, derogatory credit and recent bank judgement. I knew better but considered this a red flag from any company that pulls its credit from its butt.

They are a predatory company, period and I would stay away from them.

Message 5 of 8
K-in-Boston
Credit Mentor

Re: Low limit CCs

Credit One definitely serves a purpose for many. I wouldn’t call them predatory; they just work in a very niche market. There are far worse companies out there with fee harvester cards that aren’t quite as transparent about the fees they charge. They have also introduced other cards in recent years that are more mainstream, have grace periods on purchases, no annual fee, rewards, etc.
Message 6 of 8
recoveringfrombk7
Established Contributor

Re: Low limit CCs

They gave me a card that helped in rebuilding. I get that they aren't ideal, but we all have to start (or restart) somewhere. Definitely not a card to keep past a year if you can help it.










Desired BK recovery line up complete 7/12/2021. Planning to garden until 8/2023 and potentially try for AMEX.
Message 7 of 8
CreditInspired
Community Leader
Super Contributor

Re: Low limit CCs


@Anonymous wrote:

Greetings,


I know this topic has been brought up before, but I found way too many opinions.

My credit scores are decent (Fico 8 - 708-740)

I have an Amex Plat where I have put over $50K on, along with a Business Amex plat with over $100K balance.

I have a chase sapphire, $32K limit, and a few other cards ranging between $2500-7500 limits.


I have a couple older cards from when I had credit issues:

Amex Optima: $800 (have had 8 years)

Credit One: $1500 (have had about 6 years with a 8.00 monthly fee)

 

Based on this below, should I keep these crap cards to keep 'average age up', or does my 'average limit' get hurt too much (or is average limit even relevant?) 

 

Average Age: 7 yrs 5 mos

Oldest Account: 17 yrs 11 mos


Thank you,

 

David

 


Hi and welcome to the myFICO

 

As with anything in life, you will always find many varying opinions because simply, what works well for one, may not work well for another. The good thing about many different opinions/suggestion is that one can extract and refine the opinion given that best suits his/her individual needs.

 

So my 2cents is that since your AAOA is 7.5 years (good) and closed cards will stay on your report up to 10 years (also good), I would close the CreditOne but only because of the monthly fee and just SD the Amex Optima. Again, JMO.


|| AmX Cash Magnet $40.5K || NFCU CashRewards $30K || Discover IT $24.7K || Macys $24.2K || NFCU CLOC $15K || NFCU Platinum $15K || CitiCostco $12.7K || Chase FU $12.7K || Apple Card $7K || BOA CashRewards $6K
Message 8 of 8
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.