What to do with last low limit credit card?

[creditguy321]

Hey All!

Would love some advice and wisdom. I've been in the midst of a credit rebuild for the past 3-4 years. I've managed to move from several low limit credit cards (ranging from $500-$550) to a few cards with limits that are $1.5K and above. To be more specific I had a Merrick bank card that was opened 6 months ago that had a limit of $550. I closed it earlier this week after not being able to get a CLI. I had a QuickSilver Cap1 that had a limit of $500. Also roughly 6 months old. I closed that last month. I have one more Cap 1 Quicksilver that was converted over from a Platinum. It had an initial line of $500 and two months ago they gave me a $100 CLI so $600 total now. I'm debating closing it since it's my last low limit card but wondering if I should since it's also my oldest trade line at just over 4 years old. I'm not sure I want to wait another 4 months to request another CLI (I'd be requesting double) that I likely won't be given. 

In addition to this card I currently have:

Discover Card: $2K limit opened 2 months ago

Apple Card: $1.5K limit opened 1 month ago

Amex Delta Skymiles Platinum: $1.7K opened two days ago.

I'm also an additional on an AMEX Everyday Preferred with a $40K limit.

Current Fico: EQ: 640 TU: 626 EX: 657

My question is should I close the Cap 1 and take whatever point hit I'll get to let go of the low limit or should I keep it? I'm inclined to let it go and roll with the new cards I have and build those. I hear the AMEX will likely triple my CL in 91 days

Thank you! 

[Hex]

I think you should keep your oldest Capital One card and wait a year before applying for anything and try for a new "good credit" card from Capital One. They may give you a pleasant surprise. Low limits are in the eye of the beholder. I have a couple $2K cards that I consider low compared to my others but they were great when I got them and I just keep 'em. Some banks don't like to see you have a habit of closing your cards. 

[Remedios]

@creditguy321  is that $40,000.00 pre-approval typo? I don't see Amex extending $40K to you at this time given your scores and mid-rebuild 

As far as closing cards, that's really up to you. If you have starter cards with AF and/or monthly fees, no reason to keep them. 

If you aren't using them and don't see yourself using those cards in the future, close then if you aren't willing to monitor them. 

While you've gotten some new approvals, dont get too far ahead of yourself. 

If Merrick didn't work for you, good thing you closed it, but if you close card every card because you couldn't get increase on it, you'll run out of the cards. Merrick is a decent card, albeit without rewards, so CLI would only contribute to "utilization padding" but excepting to pad utilization with starter cards isn't realistic. 

I also wouldn't hold my breath for Amex CLI at 61/91 days.  Amex will approve when negatives are present, but that's when screeching halt happens. 

[Hex]

@Remedios

I think they meant they are an additional user on the Amex card. 

[coldfusion]

If you closed the Quicksilver it would still continue to report and contribute toward your average account age for up to 10 years so from that aspect if you really don't want to hold onto the card it would be OK to close it.  However my suggestion is that at least for now keep the card open and sockdrawer it. 

As a side note, since you've already done this twice I'll point out that establishing a habit of opening cards and then closing them within several months can come back to haunt you as it's an exercise in bridge-burning especially if there are signup bonuses involved.  Definitely not advised to do that with American Express. 

[Remedios]

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@Hex wrote:

@Remedios

I think they meant they are an additional user on the Amex card. 

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Point me in the direction of nearest coffee stand, preferably in the form of inhaled caffeine. 

[creditguy321]

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@Hex wrote:

@Remedios

I think they meant they are an additional user on the Amex card. 

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I'm an additional user on the AMEX with the $40k limit. The Delta Skymiles Platinum is my card. 

[Hex]

@Remedios

IV caffeine might be better (yes it's a real thing) inhaling coffee would be so very painful.  😁

[creditguy321]

I should clarify:

My intention is NOT to close cards just because I do not receive CLI's nor make a habit of closing cards whimsically. I closed the Merrick because I was supposed to get a CLI and had a snafu on my part with a returned payment (didn't affect my credit/appear as a late) so I didn't qualify for the double your line etc. 

I opted to close the other Cap 1 quicksilver because I've heard via this forum (as well as through personal experience) that they are very tight gripped on CLI's. 

I have zero intention of closing any of the other cards I now have. 
 
I'm simply wondering if the last Cap 1 with the $600 limit will or factor (unfavorably) into credit limits I'm given in the future with other cards and thus if I should close it for that reason. 

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@Remedios wrote:

@creditguy321  is that $40,000.00 pre-approval typo? I don't see Amex extending $40K to you at this time given your scores and mid-rebuild 

As far as closing cards, that's really up to you. If you have starter cards with AF and/or monthly fees, no reason to keep them. 

If you aren't using them and don't see yourself using those cards in the future, close then if you aren't willing to monitor them. 

While you've gotten some new approvals, dont get too far ahead of yourself. 

If Merrick didn't work for you, good thing you closed it, but if you close card every card because you couldn't get increase on it, you'll run out of the cards. Merrick is a decent card, albeit without rewards, so CLI would only contribute to "utilization padding" but excepting to pad utilization with starter cards isn't realistic. 

I also wouldn't hold my breath for Amex CLI at 61/91 days.  Amex will approve when negatives are present, but that's when screeching halt happens. 

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[coldfusion]

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@Remedios wrote:

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@Hex wrote:

@Remedios

I think they meant they are an additional user on the Amex card. 

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Point me in the direction of nearest coffee stand, preferably in the form of inhaled caffeine. 

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This may tide you over in the meantime.