To Close Orchard or Not?

[creditreformer]

Recap: Started rebuilding in ’07.  Have some baddies- tax lien (comes off in 2013), 2 hsbc chargeoffs (come off in 9/10), + some student loan lates (working on getting deleted b/c they weren’t late).  No new baddies since 2003-2004.  Ficos are in mid-high 600s.  AAOA is 2-9 years depending on the report.

 

Here are ccs I have:

 

Date acquired/cl

 

3/07- orchard- 800.  Only 1 CLI in nearly 3 years.  AF= 79, but last year, they lowered it by 50%.

 

’08-’09 (most acquired in 08, so coming up on the 2 yr mark)-

 

BA 99/500- 500- won’t unsecure b/c of the tax lien from 2003

 

Best buy mc- 650

 

Cap 1- 1100

 

Cap 1 #2- 1100

 

Hooters- 700

 

Target- 200

 

CCS I will get in 2010- USAA secured (app is on its way to me- I will put the max $1.5k down), NFCU secured (if I can’t get the unsecured).

 

Other tradelines:

 

First premier- 2 accts, all positive, closed in 2009 (2 yr mark)

 

Orchard- all positive, closed in 2009 (consolidated w/the 1 I’m now discussing)

 

Auto loan- positive, but going to drop off totally in 2010-2011

 

So…should I close the orchard cc or suck it up + pay them another $79 (or try to get it 1/2ed or waived) AF?

[Anonymous]

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creditreformer wrote: 

So…should I close the orchard cc or suck it up + pay them another $79 (or try to get it 1/2ed or waived) AF?

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For me the deciding factor, well 2 really, would be how the loss of the credit line is going to effect my utilization and the dreaded AF.

If they will cut or lower the AF again, and you can live with the results, I would run a small payment through it each month and let it just keep building good on-time payment history for you.

IMHO

CB

[creditreformer]

Utilization is always kept low, so it’s not really an issue.  Also, I’m getting the usaa secured for 1.5k, so that covers the loss of the orchard CL (and adds 700).  Going to pay orchard off in a few days + then call to see if they’ll cli + kill the AF for me.  If not, I can’t see the benefit to keeping it open.

Message Edited by creditreformer on 02-23-2010 04:22 PM

Message Edited by creditreformer on 02-23-2010 04:22 PM

[Jazzzy]

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@creditreformer wrote:

Utilization is always kept low, so it’s not really an issue.  Also, I’m getting the usaa secured for 1.5k, so that covers the loss of the orchard CL (and adds 700).  Going to pay orchard off in a few days + then call to see if they’ll cli + kill the AF for me.  If not, I can’t see the benefit to keeping it open.

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I agree. At some point you simply outgrow the high-fee cards. It will still help your AAoA for the next 10 years. It did its job.

[haulingthescoreup]

I think of rebuilder cards as training wheels. Very useful while you're trying to figure how it all works, and you can use a confidence booster/ safety net. Once you're able to ride your bike without assistance, it's time to take them off.

[Anonymous]

There comes a point where the possibility of a few FICO points does not outweigh the loss of cold, hard cash.  No matter how bad your FICO score is, cash talks.