@Kforce wrote:
@longtimelurker wrote:
@Junejer wrote:
@red259 wrote:If you want to close cards go ahead and close them if you have a thick enough file. You should at least have a couple cards open and it helps if you have a large enough credit line that your monthly credit util stays fairly low. I would never advocate keeping an AF card if it didn't have a use for you. I rarely close no-AF cards. I like to keep them open for the credit util. The exception is when I have a lender that limits the total number of cards I can have and in that case I will shut a no-AF card if I need the card slot. If someone isn't comfortable having a whole bunch of credit cards it is ok to close some of them out.
This. In my former life, as a young banker, I was instructed several times to demand that clients close credit cards when they wanted a HEL to consolidate CC debt. I wonder how much damage we did to people's credit files unawares.
Yes, but from a bank POV, that makes perfect sense, decrease the ability to increase debt again after payoff.
^^^ +1
Bank's version of finance over Fico.
I get it, just looking at it from the consumer side. If a bank told me that today, I'd tell them to pound sand.
Starting Score: 469
@Yasselife wrote: @Aim_High I wish I could PC my USAA since it's one of my oldest. I agree with your point, I want to know what you would do in my situation, card is 1.5% with high apr. I will stick to banks that allow PC while moving forward
That's one of my pet peeves, among others, about USAA @Yasselife. Until I divorced a few years ago and my old USAA card got caught in the crossfire since it was a joint account, it had been my oldest account by about another five years over that Discovercard. (ergo, my advice about keeping multiple older cards open.) My Ex would have been fine dividing our joint cards, but USAA was adamantly opposed to doing anything except closure. (We had other lenders that allowed cards to be kept intact.) That, along with hard pulls for CLI, no opportunity for product change, and even no opportunity for an APR adjustment WITH agreeing to a hard pull after a card is approved are among the reasons I don't often recommend their cards. They are just very rigid over customer policies and don't lead the industry in any area. I closed my old "Rate Advantage" (joint) and opened a new one but my scores were down since I was carrying debt. Therefore, I didn't get the lowest rate and now have several cards with not only a lower APR but also that pay rewards! For awhile, it was my highest CL at $35K however, and did some usage early-on. But I literally haven't swiped it in years. I also have banking accounts and insurance with them, so they've allowed it to stay open with no activity.
So I would ask a few questions in your case. What are the ages of your current cards? What are the credit limits? And do you have other relationship with USAA beyond the credit card? If your situation is like mine, you may be able to leave it open without a lot of work. I don't think USAA is known for closing or CLD-ing cards that aren't used, unlike some other lenders are known to do.
Meanwhile, your 1.5% rewards on that card isn't great, but it's also not really bad for an uncategorized cash-back rate. (I've said several times recently on various threads that I believe the industry is a LOT closer to the 1.5% cashback standard than the 2%, even though it's moved more in that direction in recent years.) Putting a little minor spend on it periodically isn't too much of a rewards sacrifice. Compared to your Citi Double Cash at 2%, that 1/2% difference is only $1 if you run up $200 in charges one month. Not even enough for a cup of coffee. Plus, it's lender diversity, so that is worth something as well. Maybe they will change some of these restrictive policies or reopen applications for the Limitless Cash Back (2.5%) card, which was a pretty good deal.
@Anonymous wrote:@NC84 I don't believe you can have too many credit cards. But I do think you can have too much debt. So in other words, it's what you do with the cards that matter. I recommend to never close an account.
If a card's annual fee exceeds its value to you, then it might be a candidate for closure. Also, each person has his/her own tolerance for maintaining accounts. When I hit the 16 credit card account mark, I found that I didn't enjoy the chore of the upkeep on that many cards. I'm now down to 12, and am much happier with that workload. All my accounts are paid in full each month, so no carried debt at all.
