When should I dump the starter cards?

[cammyfive]

Long story short:  16 months post BK7 discharge; re-established the day after discahrge with a new auto loan; paid perfectly on every loan and CC since then keeping 0-2% UTL consistently; joined NFCU about 4 months ago and our household income goes in there exclusively as we have checking, savings, and the starter CD.  I did a $500 secured CC with NFCU about 3.5 months ago and have PIF before the due/statement date each month.

Cards I have right now in order of getting them:

*Aspire - $750 limit; obtained a couple of months after dischrage

*Discover IT (Authorized User)

*Fortiva - $1500 limit; close to a year old

*Credit One - $400 limit; about 6 months old and I feel dumb for even adding this one

I've noticed that Aspire is now charging me a $12.50 monthly maintenance fee and I'm predicting Fortiva and Credit One will do something similar soon.  FYI, I PIF all of them at least once a month.  

Ideally, I'm hoping my NFCU graduates to a $2-$3K unsecured card this June and along with being a AU on my other half's Discover, my goal is to pick up another NFCU card in a year maybe and an AmEx card sometime after that.  From there I just want to slowly do CLI every so often and call it a day. I don't desire to have a dozen various cards but 2 NFCU and 1 AmEx would be a 'goal' of mine I wrote down before I did the BK knowing things would turn around after that.  

So when can I close Apsire, Fortiva, and Credit One?  I've read some conflicting info that closing them would drop my score a good bit.  I don't mind keeping them open if it serves a greater purpose until I can get another NFCU and AmEx.  When is the ideal time to drop these starter cards?

[Ficoproblems247]

I would drop the starter cards once you have been approved for cards to replace them. As for goal cards, keen in mind that AMEX will not approve until 5 yr 1 mo post BK. You'll want at least 3 revolvers of your own open (don't count the AU cards). Once you've established 3 decent cards that actually fit your spend and you feel you can hang on to for some time, start ditching the starter cards with the highest fees first. Take your time and plan your apps for cards you want by doing the research on what they like to see for approvals. Those starter cards will still remain on your reports for roughly 10 years and continue to contribute to your account age, even after you close them out. It takes a long time to build things back up again. Have patience and read as much as you can from the forums. Good luck with your rebuild. 

[nwa479]

Credit One was a good rebuilder Card for me.   They did credit limit increases periodically up to 1350 on one card and 1050 on the second.  

Their rebuilder card will switch to a monthly fee of 8.25 starting the second year.  The second card I was offered by Credit One has a 39 annual fee.  Ive heard on this forum a product change to a better card is an possibility as your credit improves.  Credit One May waive the fee temporarily or possibly move you to a better card.  Soon I'm going to try to close the monthly fee card at Credit One and replace it with a better card.  

They also have other products with no annual fee and cash back.  I saw seven card options on their website. 

I don't have any experience with Fortiva or Aspire.  I agree that you should close them after you have additional credit available from better cards.  

[Anonymous]

If that Fortiva is one of the 30%+ cards they offer, I'd dump it ASAP. Check with the prequals on Disco and CapOne to see if they offer you anything. If you own a home or otherwise can use it, Lowe's and Home Depot have prequals as well and most of us can use those well.

[HeavenOhio]

@cammyfive, the scoring gurus usually say that three open cards will optimize scoring. Some say five is better.

Definitely don't keep troublesome cards around for the sake of five open accounts. And while I agree with the advice to close a starter card once you have a replacement in hand, if a card is a royal pain, shut it down without worrying about a few points. When you submit an application, a closed card will prop up your history as well as an open card will.

[cammyfive]

Thanks all for the good info!

The APR isn't a concern to me since I do a PIF before the due date, but I know there may be some annual fees/acct maintenance fees coming up that I need to be aware of.  

I'll hang onto them until I've replaced each with a primary card; I think a total of 3 cards that I use for daily/monthly expenses is my goal.  

[Horseshoez]

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@cammyfive wrote:

Thanks all for the good info!

The APR isn't a concern to me since I do a PIF before the due date, but I know there may be some annual fees/acct maintenance fees coming up that I need to be aware of.  

I'll hang onto them until I've replaced each with a primary card; I think a total of 3 cards that I use for daily/monthly expenses is my goal.  

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That's the same game my wife is playing right now, pick up a new no-fee card, dump the highest AF card, rinse, repeat.

[Anonymous]

Regardless of NFCU, wait a little over 2 years post BK and then hit up PenFed. I'm 2.5 years post Ch 7 and just got $6500 17.99% Gold Visa from them.

[EAJuggalo]

I would get a Capital One Platinum and apply for a Discover.  If Discover denies you take the secured version they offer you.  In 3-4 months you should be able to PC the Platinum to a Quicksilver.  That gives you a 1.5% CB  card, a 5% rotating category card and then whatever you end up with out of NFCU.  All of which are cards to keep for a long time.

Honestly, I'd dump anything that is costing you or going to cost you money to keep.  If you have the Navy secured and an auto loan, you shouldn't need anything else.

[Anonymous]

I waited until my discover card hit 3 years my starter cards where 4 yrs if you drop to soon your credit age drops also