Reducing credit is fun

[SouthJamaica]

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@Anonymous wrote:

Closing cards and reducing credit can both be fun. I mentioned at end of year that my goal was to reduce total credit lines down from 234k (too much overall credit) down to around 170-180k. Income is north of 150k and although I'm not a BoA fan, they mentioned having too much credit when i was just showing 205k (other tradelines were not showing yet). So I would not do it for them, but I'll do it for several reasons: 

1) Streamlining makes sense

2) Wanting to present the best possible picture for future applications (in garden for at least a year)

3) Acquiring cards with greater benefits and eliminating those with minimal benefit

4) Having a manageable amount of credit

5) Assessing what I need versus what I can acquire (i.e, just because someone will give me credit does not mean it is the wisest decision for me to amass as much as I can)

6) Continually assessing needs and profile and modifying profile appropriately

7) Interest in creating a bit of "wiggle room" for future CLI's that I would like to request

Closed two Comenity Visas (5k each CL) in the fall and it felt great. Recently closed J Crew ($17,500 credit limit) and Bloomingdale's ($14,500 credit limit). I didn't have many store cards anyway, but can definitely get far better benefits from my other cash back, rewards, and miles cards. Plus, I added two Amex cards in November and Chase Hyatt in December. Those were cards that I really wanted and have been using quite a bit, and I did not feel comfortable adding more without reducing the herd.

Which cards will you close this year?

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None for me. I want to be like this guy.

[Anonymous]

I Closed Commenity Overstock.  $650.  Tempted to Close Victoria's Secret too, as the only good offers I get are for over the shoulder boulder holders. Are you listening Commenity?  I WANT UNDIE AND SWEATPANTS COUPONS. 

[Anonymous]

LOL @ SouthJamaica!

[OMW2_HighAcheiver]

Bu Yao you are crazy!
Hahahahahahaha

[longtimelurker]

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@Anonymous wrote:

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@longtimelurker wrote:

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@Anonymous wrote:

I also think it helps to have a purpose and goal in reducing overall credit as well as just specific cards, and looking at the big picture. Sometimes people will close cards, then open others, and still have too much overall credit in the eyes of some lenders. So having an overall reduction goal helps.

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And once the reduction target is readched,  people then need to stop chasing CLIs, which appears to be against the spirit of a lot of this forum!

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I think both are individual decisions that people need to make for themselves, as adults

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Right.  My point was simply that we should remember that over time (or even quickly) CLIs can undo (from the viewpoint of reducing overall credit) the impact of closing cards.   

[Anonymous]

I'm toying with the idea of closing PRG. I got some good offers and used my 2015 and 2016 airfare extras credits, but with all my other cards it seems a bit in "no man's land". The reward structure is inferior to EDP's (given that I have a CSP for dining and travel), but it lacks the perks of a Platinum. My fixed and semi-flexible CLs have been adequate for my spending, so I don't really need NPSL. I also have a true AAA membership, and don't need Amex's roadside assistance. MRs don't seem to be getting any more valuable.

OTOH, I have a good record with using Offers and the airfare credit, so part of me wants to keep it open as long as that good record continues and I can break even.

[galahad15]

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@Saleen099 wrote:

C1 QS $15.5K sd hopefully combining April
C1 Venture $20K sd hopefully combining April
C1 QS 5k sad hopefully combining April
Discover $11.5k carrying 0% balance definite keeper
Macy's store 21.5K and Amex 5K will Close 
Bloomingdale's Store 21.7K Amex 4K. Will Close 
Barclays arrival plus. $8500 closed
Barclays ring $2500 closed
Room TO GO 10K and 7.2K will close out

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J/c, why did you decide to close your Barclay Ring?    There aren't a lot of cards out there like it (8.25% V across-the-board APR for purchases, BT, and cash advances, plus no BT fee)?

[galahad15]

Personally, I am (most likely) not planning on closing any cards in 2016, although a few will remain sockdrawered and/or get minimal usage, to keep them open.  My 2016 goal is to pay down as much existing debt as possible.

[Anonymous]

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@Anonymous wrote:

I'm toying with the idea of closing PRG. I got some good offers and used my 2015 and 2016 airfare extras credits, but with all my other cards it seems a bit in "no man's land". The reward structure is inferior to EDP's (given that I have a CSP for dining and travel), but it lacks the perks of a Platinum. My fixed and semi-flexible CLs have been adequate for my spending, so I don't really need NPSL. I also have a true AAA membership, and don't need Amex's roadside assistance. MRs don't seem to be getting any more valuable.

OTOH, I have a good record with using Offers and the airfare credit, so part of me wants to keep it open as long as that good record continues and I can break even.

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Sounds like a good plan. I've heard this comment from a few other people about PRG as well. If it doesn't work for you, it's time for it to go!

[Anonymous]

Great thread! I am laying low and not doing anything with any of my cards for six months to a year then I plan on combining my Bank of America cards. I am not asking for any credit line increases. I am just keeping track of the cards I use most and in a year will make some major changes including closing some cards and adding one or two credit unions, but no decision for a while. Just managing accounts and waiting for my scores to reach the levels they were when I began apping. Higher scores and good credit usuage are this year's goals.