Question about closing/switching cards

[goodygoody]

Hi there.  I just read through the topic on closing cards, and am still a little confused about a few issues.  My husband and I both have Capital 1 cards that we got in order to build credit (he had none, I had bad).  We also got a couple store cards and an auto loan.  We've been relatively successful and we both have scores close to 700 (which I hope will increase even more soon since we just paid all our cards off).  Our Capital 1 limits are both only $500 though, which is frustrating, because if we want to charge a trip or a large purchase, we better make sure we pay it off before the statement comes out or our utilization drops our score. 

So my question is, if we would close the Capital One cards and open something else, would we still have the same problems described in the closing cards topic (like where your available credit takes a hit)?  It seems that if we had more credit available, this would be a positive rather than a negative.  Or should we just keep them open and do a balance transfer?  We'd rather not have more credit cards, necessarily, just more available credit and hopefully lower interest.  If we keep them open but don't use them, is this a negative for CR?  If we want a mortgage in the next year or so, would it be best to wait to get that and then close the Cap 1's?  The other downside is the yearly fee you pay for them ($39.99 for each of  us), so would love to see that go.

Thanks for any advice! 

[pizzadude]

Closing CCs will never hurt your FICO score unless your %util increases. It's not your available credit that counts but rather how much you use that counts.

I would apply for other cards that will give you better CLs and growth potential and then close out your cap1 cards. IMO $39 is too much of an AF for a $750 CL.

[Anonymous]

Hi goodygoody!

If you close your Cap1 card, your utilization will only take a hit if you have a balance on your other card(s).

But, it'd be easier for us to give you more directed answers if you could provide a bit more information:

• What are your card limits and balances
• When was each card opened
• What is your AAoA
• What, if any, derogs are on your credit reports
• How many INQs do you have

The reason that I ask is that it sounds (reads) like you're really in the market for a different card. Members can make recommendations if they know where you stand, creditwise. You can also use The Credit Card Center to get an idea of what card(s) you're interested in, and that you might qualify for. Then, be sure to come back here to ask about what other members have experienced with that specific product(s).

Do note, however, that if you're in the market for a mortgage, you'll (ideally) want to stay app free for 1 year. So, if your mortgage app is going to happen within the next 12 months, I suggest that you keep the Cap1 cards, for now, and just hold on (grin and bare it) until you've obtained your mortgage. If you think that your mortgate app is going to be more than 12 months out, it might be best to make a move now, so that you can be INQ free for a year, and have your new card(s) at least 1 year old.

[pizzadude]

Sorry I meant to type "for a $500 CL"

Can't edit replies from my IPhone.