Should I close my subprimes?

[Anonymous]

I have a few subprime cards.
Milestone, Cred One, Verve and Surge.
They are all about three years old and have served their purposes. However I am paying a out $30 per month in annual fees amongst my four of them.

I have since gotten prime card's such as US Bank, Amex Gold, PaypalMC all with limits around 7500 each.
My Fico8 is 658 and I was only approved for the Amex after a recon and providing banking documents and income verification.
So far I have had really, really good luck on recon lines.
I will be trying to apply for a mortgage soon and I am wondering if the subprime cards will hurt my chances? My score isn't high enough for automatic underwriting and I'm afraid someone may be spooked by active subprime cards on my file.

[Anonymous]

Hmm this is a good question. I vaguely remember reading somewhere some lenders don’t like to see subprime credit cards on your profile. I would still probably keep them open until after your mortgage loan is completed if you can manage the fees, just because your score may drop after closing them. Will be watching this thread.

[DaveInAZ]

If you have "US Bank, Amex Gold, PaypalMC all with limits around 7500 each" don't even think twice about paying $30 per month in annual fees on those subprime cards, shut 'em down, they've served their purpose. And mortgage lenders are happier when you have fewer credit cards, they figure less chance of you going on a spending spree and getting into trouble. After your mortgage closes and reports on your CR you'll be a position for even better cards. 

[Anonymous]

Are you paying AF for the subprime cards? I would close them personally, but I would close them even quicker if there are AF attached to them. 

[wasCB14]

The good history from the cards will stay on your reports.

You'll lose some available credit, but I'm guessing the total CL on those cards can't be more than about $2k, so your utilization won't change much.

I'd think to close them now, but seek confirmation from people more experienced with getting or underwriting mortgages than me.

[Medic981]

I agree with closing sub-prime CCs. They have served their purpose. I am not sure what will happen to your FICO scores but it shouldn't go against your UTI as most every mortgage seeker is required to pay off their CC to show they are not overextended. Good luck to you and working towards obtaining your mortgage.

[pipeguy]

You are paying $360 a year to keep open cards you no longer need or use? What was the question?

(close them all yesterday!!)

[UpperNwGuy]

Close them.

[SouthJamaica]

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@Anonymous wrote:
I have a few subprime cards.
Milestone, Cred One, Verve and Surge.
They are all about three years old and have served their purposes. However I am paying a out $30 per month in annual fees amongst my four of them.

I have since gotten prime card's such as US Bank, Amex Gold, PaypalMC all with limits around 7500 each.
My Fico8 is 658 and I was only approved for the Amex after a recon and providing banking documents and income verification.
So far I have had really, really good luck on recon lines.
I will be trying to apply for a mortgage soon and I am wondering if the subprime cards will hurt my chances? My score isn't high enough for automatic underwriting and I'm afraid someone may be spooked by active subprime cards on my file.

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Yes you should dump all four.

No it won't hurt your chances on the mortgage; it might even help.

[Anonymous]

Keep them open if you're emotionally attached.