My plan to close out cards with annual fees

[Anonymous]

Account Name - Credit Limit - Acct Age - Annual Fee $$

Cap One Plat  - $1,000.00 - 10.25 yrs - $39.00

Cap One Plat -  $600.00 - 14.25 yrs  - $29.00

Cap One QS1 -  $2,400.00 - 13 yrs -  $39.00

Cap One Plat  -  $8,300.00 - 12.6 yrs - $59.00

Cap One Plat  -  $2,000.00  - 10.25 yrs -  $29.00

Merrick Bank -    $5,900.00  -  13yrs -  $0.00

US Aiways MC - $12,800.00  - 2.5 yrs -  $89.00

Dell (DFS) -         $4,000.00 -  1.25 yrs -  $0.00

Chase Amazon -  $3,000.00 -  0.25 yrs -  $0.00

 TTL CC Credit Line =>  $  40,000.00

Installment loans:

Personal Loan Bal -  $14.8k -   2.5 years

Auto Loan Bal -  $16.3k  - 2.5 years

AAOA = 7.49 years

I am going to do some card cutting once my cc debt is completely paid off in March 2015.  Unforunately, my oldest accounts are also those with annual fees and and low credit limits (they were the first cards I ever had when my scores were in the toilet).  I don't really care too much about interest rates, as I won't be going into cc debt ever again.

I plan on cancelling the c(r)apital one cards with the $600, $1000 and $2000 credit limits.  From what I've read, CapOne doesn't like to waive AF's, allow you to PC or merge accounts, so it's time to let them go. To simplify this exercise, I didn't include closed accounts (there are only a few anyway). According to my calculations, if I close those three but also cancel my Dell Financial Services account (it's less than a year and a half old and was only used to buy a new laptop), it looks like it will ding my AAOA less than one year.  I'd really love to get rid of all 4 capital one platinum cards, but I don't want to get too aggressive out of the gate. At least the $59 AF card has a higher limit. For now, the QS1 AF pays for itself with the cash rewards. 

Am I missing something or does this seem to make good sense as a plan? I figure after my 1 inquiry drops off next September, I will apply for a card that is more in line with my current credit score... one with a high credit limit, much lower interest rate and no annual fee.

Thanks in advance!

[Anonymous]

Sounds like a good plan.  Don't worry so much about closing cards and AAoA.  Closed accounts stay on your file for 10 years

[Anonymous]

Thanks! I wasn't entirely sure whether or not AAOA was calculated using closed accounts.  There is so much info out there telling you "whatever you do, don't close your accounts" that it makes me nervous. I've worked hard to get my score where it is today and once I pay off my cards, I'll likely be in the 800's as my current utilization reported is 49%.  Thanks again! 

[Anonymous]

You're welcome.  Definitely get that utilization down and you should be very close to 800 if not over.  Here's a great thread that discusses closing cards:

http://ficoforums.myfico.com/t5/Credit-Cards/Closing-Credit-Cards/m-p/347190?jump=true

[Anonymous]

Why not try to PC some of those high limit CapOne cards? As well as the Barclay.

[wacdenney]

How in the world did you end up with 5 Crapital One cards???  Don't they have a 2 card limit?  Maybe a former Orchard card?  How do you get to 5 though?!?

[jsucool76]

I would definitely see if you can PC them to something with no annual fee...all of them, if not, close the ones you mentioned, and then still try to get the AF waived/PC all your other cap1 cards. 

[NRB525]

+1 to try the PC. You've got a lot of history with Capital One. That has to be worth something to them.

[yfan]

Capital One does do PCs. You can ask to have your Platinums upgraded to QS with no AF. They did for me (although it was just a Plat, no AF). But with your scores, they should be happy to do it.

[kdm31091]

You definitely don't need 5 cap one cards. You could close them all if you are unhappy with them as a lender anyway. They never combine credit limits or anything, but I have heard of them removing AFs and PC'ing cards. You could close all but one and PC it to something with no AF. But again if you dislike them in general just move on