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Simplifying my credit cards

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Anonymous
Not applicable

Simplifying my credit cards

Hi all,

I'm new here and interested in getting some feedback on how to simplify my credit cards. I actually dislike using credit cards, which is one of my main reasons for wanting to reduce what I have. Speaking of which, I have the following 4 cards, each having a $25k limit, though my total outstanding balance at any given time is never more than a few hundred dollars.

 

  • Fidelity Rewards Visa - 2% on everything, auto-deposited into my Fidelity brokerage account monthly.
  • Amex BCE - 3% on groceries, but I only spend $400-$500/month, so not a lot and not a big difference from the Fidelity card.
  • Capital One Quicksilver Visa - 1.5% flat, useless but my oldest card at this point, about 6 years.
  • Chase Amazon Rewards Visa - Useless now that I don't even have an Amazon account, let alone Prime. However, Chase is my primary bank.

Ideally I'd have zero cards, but if I have to have just one, Fidelity makes the most sense since that's also where all of my investment and retirement accounts are located. As for the rest, they're all useless by comparison to the Fidelity card and I hate the idea of having to keep them and putting a small monthly payment on them, using them once in a while, etc. I'd rather just simplify, reduce the number of banks with which I need to deal and have an account, etc.

 

I appreciate any thoughts you all may have. FWIW, I'm 48yo and the only score I know right now is the VantageScore 3.0 via Chase, currently 818. Also FWIW, I have a 36-month car lease with a final payment in October. I'll either be paying the residual balance outright (about $19k) or leasing or buying outright a new 2022 Impreza, haven't decided what, though.

 

Message 1 of 19
18 REPLIES 18
NRB525
Super Contributor

Re: Simplifying my credit cards

Kudos for setting your goal to be just the few cards you want to manage. You are correct that the cash back difference among these cards is minimal. 

I'll suggest closing the AMEX and the Chase cards. 

That leaves you with a good 2% card for most spend, and a Capital One card as a backup. It's a good idea to have two active cards, in case one has a problem at check out or on a trip. CapOne being your oldest is a vote to keep it alive as well.

 

Alternatively, keep the Chase Amazon card open, and close the CapOne. That way, your one log in to Chase handles more financial tasks, no extra CapOne log in. The age of your CapOne card will still be assisting your score for several years even if you close it now.

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765
Message 2 of 19
Suzette2
Frequent Contributor

Re: Simplifying my credit cards


@Anonymous wrote:

Hi all,

I'm new here and interested in getting some feedback on how to simplify my credit cards. I actually dislike using credit cards, which is one of my main reasons for wanting to reduce what I have. Speaking of which, I have the following 4 cards, each having a $25k limit, though my total outstanding balance at any given time is never more than a few hundred dollars.

 

  • Fidelity Rewards Visa - 2% on everything, auto-deposited into my Fidelity brokerage account monthly.
  • Amex BCE - 3% on groceries, but I only spend $400-$500/month, so not a lot and not a big difference from the Fidelity card.
  • Capital One Quicksilver Visa - 1.5% flat, useless but my oldest card at this point, about 6 years.
  • Chase Amazon Rewards Visa - Useless now that I don't even have an Amazon account, let alone Prime. However, Chase is my primary bank.

Ideally I'd have zero cards, but if I have to have just one, Fidelity makes the most sense since that's also where all of my investment and retirement accounts are located. As for the rest, they're all useless by comparison to the Fidelity card and I hate the idea of having to keep them and putting a small monthly payment on them, using them once in a while, etc. I'd rather just simplify, reduce the number of banks with which I need to deal and have an account, etc.

 

I appreciate any thoughts you all may have. FWIW, I'm 48yo and the only score I know right now is the VantageScore 3.0 via Chase, currently 818. Also FWIW, I have a 36-month car lease with a final payment in October. I'll either be paying the residual balance outright (about $19k) or leasing or buying outright a new 2022 Impreza, haven't decided what, though.

 


Honestly, due to past bad times I get having a phobia about credit, using it and owing money.  I get it.  
that being said, I had a near miss disaster today which was only averted by having credit and the high limits I've fought to get (not as much as yours).  I see it as a cushion for such times. 

6/20 :12/22 :
Message 3 of 19
cmm89
Frequent Contributor

Re: Simplifying my credit cards


@Anonymous wrote:

Hi all,

I'm new here and interested in getting some feedback on how to simplify my credit cards. I actually dislike using credit cards, which is one of my main reasons for wanting to reduce what I have. Speaking of which, I have the following 4 cards, each having a $25k limit, though my total outstanding balance at any given time is never more than a few hundred dollars.

 

  • Fidelity Rewards Visa - 2% on everything, auto-deposited into my Fidelity brokerage account monthly.
  • Amex BCE - 3% on groceries, but I only spend $400-$500/month, so not a lot and not a big difference from the Fidelity card.
  • Capital One Quicksilver Visa - 1.5% flat, useless but my oldest card at this point, about 6 years.
  • Chase Amazon Rewards Visa - Useless now that I don't even have an Amazon account, let alone Prime. However, Chase is my primary bank.

Ideally I'd have zero cards, but if I have to have just one, Fidelity makes the most sense since that's also where all of my investment and retirement accounts are located. As for the rest, they're all useless by comparison to the Fidelity card and I hate the idea of having to keep them and putting a small monthly payment on them, using them once in a while, etc. I'd rather just simplify, reduce the number of banks with which I need to deal and have an account, etc.

 

I appreciate any thoughts you all may have. FWIW, I'm 48yo and the only score I know right now is the VantageScore 3.0 via Chase, currently 818. Also FWIW, I have a 36-month car lease with a final payment in October. I'll either be paying the residual balance outright (about $19k) or leasing or buying outright a new 2022 Impreza, haven't decided what, though.

 


TBH, I think you've answered your own question.  You explicitly state you don't really care for anything else.

 

Just make sure the cash back deposited is automically invested according to your risk tolerance/appetite. 

What I use (& strongly recommend): Chase Sapphire Reserve | BofA/ML (Premium Rewards VS, Cash Rewards VS, Merrill+ VS) | AmEx (Amazon Prime Business)

What I have: NFCU | PenFed | General Electric CU | Wright Patt CU | Discover | BBVA | Apple Card (GS)

Total CL with Bank of America = $100,000 (Platinum Honors Merrill Client). I am a CERTIFIED FINANCIAL PLANNER™ practitioner, so feel free to message me if you have any planning/credit questions.

EQ 759, EX 765, TU 771 (06/10/2022)

I started with scores in the 400s in 2016. This forum is a Godsend--focus on the journey, be patient, and you'll definitely get there no matter the circumstances!

Message 4 of 19
Anonymous
Not applicable

Re: Simplifying my credit cards

Hey all,

 

I appreciate all of the feedback so far! The reason I decided to join and post about this is that I do have concerns about closing credit cards and wanted to better understand whether my fears are justified. Reading through subreddits like r/personalfinance and r/credit have been enlightening in many ways, but Reddit is Reddit and I felt that a more dedicated forum such as this one might be a better source of information.

 

Since my current total limit across my cards is $100k (and I do make a good salary in the low six figures), vastly more than I'd ever spend, even reducing that to $50k across two cards should be fine. I'd certainly take a hit on my score for a bit, but that would recover. However, since I may also lease a new vehicle in Oct/Nov when my current 1.9% interest lease is up, I definitely want to be careful about changes to my credit profile in the upcoming months. Further, I may also move to a new apartment since that lease is also up on Oct 31 and I know they tend to do credit pulls, so that's another concern. And FWIW, I've never owned a home (being single with no pets and preferring a small, simple space), so I've never had a mortgage and probably never will.

 

Given that additional information, which I really should have provided in my original post, would it be safe to assume that I might want to wait until maybe early next year before closing any cards?

 

And as for which cards to close, I definitely agree that the Amex would be the first, though in a way it was my oldest card, as I got my first Amex in 2000. However, that was a Blue Sky card and when I changed it several years ago, that turned out not to be a product change but an entirely different card, so the age of that card was screwed. Regardless, still seems like the best first card to close.

 

Then, I'm torn between closing the Chase Amazon card and the Capital One. The CapOne is now the oldest by a bit and I just have it set for a simple yearly mailed check of any accrued cash back, but as I'd said, Chase is my bank (and that's who has my current, and possibly future, car lease) so eliminating CapOne gets rid of a bank with which I would no longer otherwise have business. So yeah, it's kind of a toss-up between the Chase and CapOne cards. I do have a love/hate relationship with Amazon though, as I'm an IT guy who works with AWS for a living, and their tech is amazing even if their business practices are horrible, and I really would prefer to never have an account with them again, but I can't rule out the possibility.

 

Again, thank you all for the feedback and I'll be attentive for any further responses!

 

Message 5 of 19
Anonymous
Not applicable

Re: Simplifying my credit cards

The following idea just occurred to me: Once my car lease/purchase and possible apartment move are done at the end of the year, assuming my credit score is still really good, I could first apply for a new, appropriate Chase card and then eventually close the Chase Amazon Visa, Quicksilver, and Amex cards over the next several months or so.

 

Thoughts?

 

Also FWIW, I hate travel (on average I fly domestically once a year to visit family and I hate airports and airplanes), so travel cards are not worth it to me. And my spending habits are pretty low and don't really favor dining out, gas, etc. so cash back is generally the most ideal rewards feature for me.

 

Message 6 of 19
calisig
Regular Contributor

Re: Simplifying my credit cards

I would keep Fidelity and Quicksilver.

 

I personally don't see any advantage to having your cc where you bank, so keeping the Chase Amazon because of that isn't a reason to me, especially since you don't Amazon. I prefer to keep all my accounts diversified across multiple banks. I know some say don't worry about closing your oldest account, because it will stay on your credit report - until it falls off - but if you were to keep it, it would add that much more age to your file compared to if you get another card today.

 

What I don't understand is this:


@Anonymous wrote:

The following idea just occurred to me: Once my car lease/purchase and possible apartment move are done at the end of the year, assuming my credit score is still really good, I could first apply for a new, appropriate Chase card and then eventually close the Chase Amazon Visa, Quicksilver, and Amex cards over the next several months or so.


Why do you want a new card if you are trying to get rid of cards? Is there some sort of "appropriate" spend you are planning to use a card for that your current cards don't cover?

13Oct22 Exp F8: 812
Message 7 of 19
Kforce
Senior Contributor

Re: Simplifying my credit cards

I am one of the few in the myfico forum that like it simple.

If not for reality I would just have two cards.


Reality is more like 3 or 4 cards.

Three for Fico scoring. (Cards reporting balance, AZEO, Age, etc.)

Two for network restrictions. (Need a MC and Visa)

Two for safety just encase a card get locked for fraud, lost, etc.

Convenience, depends on a few factors. For my family wife, daughter and myself each uses a different daily card. More simple on tracking spend, looking for fraud, knowing who to ask if something looks unknown, and collect money from daughters non family spend. Gas for car OK, new sunglasses from "Dicks Sporting" Smiley Mad


My early 3 cards were a general 2% Visa (like your Fidelity), a 3% MC (gas, grocery, fast-food, restaurant) - BofW Cashback MC, and a 5% in a few categories that I used a lot (US-Bank Cash+). I believe it made a good simple set for my spend. The USBank lived in the desk and was linked for paying cell and utilities, never in pocket. Only two cards to put daily spend on.


I later simplified even more and put all spend on three - 3% general spend cards.

Two of the three are not available for new applications and the third has a nerf date.


If making a card set today I would get the Alliant 2.5% general spend (10k/mo cap & 1k in checking), a 2% general spend (many options- you have one already), and either a good 5% for your spend or a card like the Bank-West 3% in 4 categories no AF. If OK with just 2% cards and family convenience was more important maybe just a few general spend cards on different networks


Get a new card that fits your spend or family needs better than what you have now.

(Maybe Alliant 2.5%) for rewards or a (2% MC) for network and family spend tracking.

Dump the Amex

Wait for 4-5 months

Get another better card (BofW, US-Bank, ??)

Dump the Amazon if it is not a good fit.

Wait 4-5 months

Then dump the Cap1 after you have a superior 3 card set is in hand.

 

Message 8 of 19
ptatohed
Senior Contributor

Re: Simplifying my credit cards

I was going to say what cmm said, you answered your own question.  Use only the Fidelity.  But, unlike others, I have never closed a card in my life.  I just stop using it.  Sock drawer it, cut it up, whatever.  I just don't see the need to actually close the accounts.  Unless you are worried about fraudulent use?  Even then, sometimes you can just freeze the cards.  Good luck!  

[Until I can make a pretty signature, here’s an updated draft]

Everyday 5% CB:
Chase prime Visa // citi CUSTOM CASH “A” // citi CUSTOM CASH “B” // citi SHOP YOUR WAY (5% gas (in points), lucrative spending offers) // mylowe’s Rewards // Target circle card

5% CB rotating:
Chase “OG” freedom Visa // DISCOVER it Cash Back // nusenda CU Platinum Cash Rewards

Everyday 4% CB:
US Bank Smartly (v1.0)

Everyday 3% / 2.2% CB:
AOD FCU Visa Signature (3%, sockdrawered) // upgrade Cash Rewards Elite (2.2%, sockdrawered)

Welcome Offer / credits only:
Chase SAPPHIRE PREFFERED (grabbed my $1,000, sockdrawered, will cancel) // NFCU FLAGSHIP REWARDS (elevated Welcome Offer, annual prime credit, sockdrawered)

Hotel card:
Chase IHG ONE REWARDS PREMIER (elevated Welcome Offer, 1 free night/yr)

On my radar:
Langely FCU Signature Cash Back (5% CB monthly selectable cat) // Safe CU Cash Back+ (Quarterly rotating 5% CB cats plus bonus cats) // upgrade MyFive Cash Rewards (5% CB monthly selectable cat) // US Bank Kroger (and family) World Elite Master Card(s) (5% CB Mobile Wallet)
Message 9 of 19
Anonymous
Not applicable

Re: Simplifying my credit cards

My thought process regarding having a Chase card as my backup, whether the otherwise-useless Amazon card or a different one that actually would have some value to me, is that it keeps both credit cards with the two financial institutions where I have other accounts (i.e. Chase for banking and auto loan and Fidelity for investment accounts and a CMA as a backup checking account), thus helping achieve the simplicity that drove my original post.

 

To your point about getting a new card, I was thinking of it as a replacement for an existing card just so that I'd still have a second card as a backup but it would be one that would have more value. That said, now that I've looked over Chase's other cards, they don't really have any that would be much better for my spending patterns than the Amazon card, so that makes getting a new Chase card moot. The Fidelity 2% card is all I really need, so having any card as a backup really is fine.

 

Message 10 of 19
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