I have recently acquired CCs with much larger limits than the 2 $300 limit cards from Orchard Bank. These 2 cards are approaching the time for the annual fee to be due. I was wondering if I should go ahead and cancel the cards or keep them open for whatever reason. Both cards are only a year old and my others are younger, but have $2500-5000 limits.
What should I do?
Cap1 - $750
PSECU - $5000
Wells Fargo - $3000
MCCU - $2500
You have other bank cards open, so you don't need the Orchard card in that regard. (FICO likes to see a bank card - you only need one).
How's your utilization? And number of cards reporting a balance? FICO likes to see <9% utilization and few cards reporting a balance (the mantra is all cards but one reporting zero, with the one remaining card reporting <9% for highest FICO scores). If you're good on both of those, then it's a great time to close Orchard - both of 'em. And congrats on building/rebuilding to the point where you no longer need them.
And, of course, the master read for closing cards is here.
With the cards you have, I would close Orchard, just to save money and/or from the inconvenience of calling every year trying to get the AF waive
IMO Orchard has served its purpose. I think if in the future you apply for credit, it would look better not having two low limit cards. Soon to be three Cap1 cards. Reading on the forum awhile back people got $100 CLI after 2 years or more from Orchard and excited they got it. I'm kicking them to the curb before My annual fee and Cap1 takes over. But that's JMO. I wish I had the cards you have but working on it.
With two out of six cards reporting a balance, I would consider closing one Orchard Bank. That leaves you with five revolvers; two reporting a balance. When you can get down to only one card reporting a balance less than 9%, I'd close the second Orchard. But that's just me.