Should I cancel any of these cards?

Anonymous · ‎04-29-2021

Finally taking control of my credit report and trying to do some cleaning up! Working on old information and a couple collections, and my overall profile.

I recently read that having cards with low limits, can hurt your chances of getting a new card with a higher CL. Is this true? Unfortunately, my cards with the lowest limits are also my oldest cards. I recently got the Navy Federal credit card and am hoping for a good limit in a couple months on an increase and/or new card with them.

I've also heard having subprime cards aren't really good to keep once you are able to get prime cards. I didn't realize this when I got Credit One last summer. I was thinking of cancelling my Credit One. These are my current cards:

	Date Opened	Credit Limit
Capital One (Quicksilver)	7/2/2018	$500.00
Capital One (Platinum)	6/5/2019	$2,000.00
Citi Double Rewards	3/19/2020	$2,000.00
Credit One	8/23/2020	$1,000.00
Kohls	6/29/2015	$300.00
Navy Federal	4/16/2021	$500.00
Overstock	8/15/2020	$750.00
VS	9/14/2015	$100.00

Are there others I should cancel? The VS credit limit kills me (they dropped it a couple years ago) but again, one of my oldest cards.

Anonymous · ‎04-29-2021

Have you tried recently for increases on kohl's, VS, and Overstock? They're all SPs - I'd definitely try that before doing anything.

To an extent, it's possible that higher limits beget higher limits. On the other hand, personal experience has shown me that's not absolute (my CapOne QS is at $700, while six of my cards range individually from $8750 to $30,000).

I would keep at least one of either kohl's or VS since they're essentially the same age - if you're going to close one, keep whichever is more beneficial. Your AoOA won't change, but when the closed card eventually falls off your reports (as much as ten years from now) your AAoA will get dinged a little, but chances are it'll be minor as you'll likely have other cards that have aged that ten years as well.

The only reason I see to not close Credit One this moment would be if you have any appreciable utilization on your cards, since you'd be losing ~13% of your TCL, and that might drive your aggregate usage up over a scoring breakpoint and cost you points. If your balances are minimal or zero, there's no reason to keep it alive another day.

Anonymous · ‎04-29-2021

@Anonymous wrote:
Have you tried recently for increases on kohl's, VS, and Overstock? They're all SPs - I'd definitely try that before doing anything.

To an extent, it's possible that higher limits beget higher limits. On the other hand, personal experience has shown me that's not absolute (my CapOne QS is at $700, while six of my cards range individually from $8750 to $30,000).

I would keep at least one of either kohl's or VS since they're essentially the same age - if you're going to close one, keep whichever is more beneficial. Your AoOA won't change, but when the closed card eventually falls off your reports (as much as ten years from now) your AAoA will get dinged a little, but chances are it'll be minor as you'll likely have other cards that have aged that ten years as well.

The only reason I see to not close Credit One this moment would be if you have any appreciable utilization on your cards, since you'd be losing ~13% of your TCL, and that might drive your aggregate usage up over a scoring breakpoint and cost you points. If your balances are minimal or zero, there's no reason to keep it alive another day.

I haven't requested CLIs. I have some high balances which will be paid in a couple weeks, so I figured CLIs will be denials anyway.

Anonymous · ‎04-29-2021

Try them out once you're paid down and the new balances (and scores) are reflected - you may get approved.

gdale6 · ‎04-29-2021

Going to move this to the main credit forum for addl input

MitchDeerfield · ‎04-29-2021

Which ones do you use? Closing credit cards doesn't raise you credit score. I would close the one or two low-limit cards that you never use.

Remedios · ‎04-29-2021

@Anonymous wrote:
Finally taking control of my credit report and trying to do some cleaning up! Working on old information and a couple collections, and my overall profile.

I recently read that having cards with low limits, can hurt your chances of getting a new card with a higher CL. Is this true? Unfortunately, my cards with the lowest limits are also my oldest cards. I recently got the Navy Federal credit card and am hoping for a good limit in a couple months on an increase and/or new card with them.

I've also heard having subprime cards aren't really good to keep once you are able to get prime cards. I didn't realize this when I got Credit One last summer. I was thinking of cancelling my Credit One. These are my current cards:

Date Opened Credit Limit
Capital One (Quicksilver) 7/2/2018 $500.00
Capital One (Platinum) 6/5/2019 $2,000.00
Citi Double Rewards 3/19/2020 $2,000.00
Credit One 8/23/2020 $1,000.00
Kohls 6/29/2015 $300.00
Navy Federal 4/16/2021 $500.00
Overstock 8/15/2020 $750.00
VS 9/14/2015 $100.00

Are there others I should cancel? The VS credit limit kills me (they dropped it a couple years ago) but again, one of my oldest cards.

It really depends.

Does Credit One have monthly fees? Does it have grave period? Are you using it?

It's a fairly new card, but unless it's fee-free and with grace period, it should go.

As far as your store cards, it's up to you.

If you are using them, keep them.

Limit on VS is low, but it might grow after the reasons for CLD are resolved.

I wouldn't do anything (other than close Credit One).

Instead, focus on letting what you have age, work on your negatives since they are primary reason for low(ish) limits, and be patient.

Closing cards to open cards might work with clean profiles, but it doesn't really work that well while there is some work on CR left to be done.

M_Smart007 · ‎04-29-2021

Try to keep your oldest card.

Anonymous · ‎04-29-2021

@MitchDeerfield wrote:
Which ones do you use? Closing credit cards doesn't raise you credit score. I would close the one or two low-limit cards that you never use.

I use them all at some point.

My concern with Credit One specifically was that it's a subprime card and I recently read that they are not good to have on your credit once you get prime cards, for when other lenders look at your credit for bigger credit limits. Same with low limit cards.

I'm brand new to cleaning up my credit, so I don't know what's all accurate and what is not. I just want to do what I can to work on it.

Anonymous · ‎04-29-2021

@Remedios wrote:
@Anonymous wrote:
Finally taking control of my credit report and trying to do some cleaning up! Working on old information and a couple collections, and my overall profile.

I recently read that having cards with low limits, can hurt your chances of getting a new card with a higher CL. Is this true? Unfortunately, my cards with the lowest limits are also my oldest cards. I recently got the Navy Federal credit card and am hoping for a good limit in a couple months on an increase and/or new card with them.

I've also heard having subprime cards aren't really good to keep once you are able to get prime cards. I didn't realize this when I got Credit One last summer. I was thinking of cancelling my Credit One. These are my current cards:

Date Opened Credit Limit
Capital One (Quicksilver) 7/2/2018 $500.00
Capital One (Platinum) 6/5/2019 $2,000.00
Citi Double Rewards 3/19/2020 $2,000.00
Credit One 8/23/2020 $1,000.00
Kohls 6/29/2015 $300.00
Navy Federal 4/16/2021 $500.00
Overstock 8/15/2020 $750.00
VS 9/14/2015 $100.00

Are there others I should cancel? The VS credit limit kills me (they dropped it a couple years ago) but again, one of my oldest cards.

It really depends.
Does Credit One have monthly fees? Does it have grave period? Are you using it?
It's a fairly new card, but unless it's fee-free and with grace period, it should go.

As far as your store cards, it's up to you.
If you are using them, keep them.
Limit on VS is low, but it might grow after the reasons for CLD are resolved.

I wouldn't do anything (other than close Credit One).
Instead, focus on letting what you have age, work on your negatives since they are primary reason for low(ish) limits, and be patient.
Closing cards to open cards might work with clean profiles, but it doesn't really work that well while there is some work on CR left to be done.

It does have fees, and I do use it sometimes.

I wasn't sure if closing it would help my credit, with it being a subprime card and that I have other prime cards. I am willing to close it if it were to help my profile.