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Which card(s) do I drop, if any, for better CL in the future?

coerciondotde
Frequent Contributor

Which card(s) do I drop, if any, for better CL in the future?

So I just got the Jareds ($5,100) and Cap1 Platinum ($300) today. My oldest card is the Saks 5th store card at 4 years. I think the two Credit Ones cards are at 2yrs and 1yr old. Kohls is also about a year old. I'd really like to keep my Saks and Kohls, as I use them and they're practical for me. The ones I think might need to be tossed are CreditOne. I don't care about their fees much as it's once as year, but with respect to scoring....is it better to keep them at $0 and just let them report in a sock drawer or I will I see more benefits from closing out the lower limit $600 one and building up the rest of my TLs? 

As far as I understand, when banks look at your profile, they like to look at other limits and possibly assign one according to the others. If the CreditOne cards aren't holding back my potential (guess it's not with the $5,100 approval, but then the $300 cap one approval had me scratching my head...)  Plus, the credit one cards are technically my HIGHEST limit credit cards in my profile also, not store cards like my higher Dell and Jareds account.

 

Any advice?

Saks 5th $500 / Kohls $1500 / CreditOne $800 & CreditOne $800 / CapOne Walmart MC $550 / Cap One Plat $300 / Dell Charge Card $3,500 / CU Auto Loan 16K @ 5.5% / Jared Store Card $5,100 / Kay Jewlers $5,100 / Apple Card $250 / Lowes $5,000
Message 1 of 5
4 REPLIES 4
CH-7-Rebuilding
Valued Contributor

Re: Which card(s) do I drop, if any, for better CL in the future?


@coerciondotde wrote:

So I just got the Jareds ($5,100) and Cap1 Platinum ($300) today. My oldest card is the Saks 5th store card at 4 years. I think the two Credit Ones cards are at 2yrs and 1yr old. Kohls is also about a year old. I'd really like to keep my Saks and Kohls, as I use them and they're practical for me. The ones I think might need to be tossed are CreditOne. I don't care about their fees much as it's once as year, but with respect to scoring....is it better to keep them at $0 and just let them report in a sock drawer or I will I see more benefits from closing out the lower limit $600 one and building up the rest of my TLs? 

As far as I understand, when banks look at your profile, they like to look at other limits and possibly assign one according to the others. If the CreditOne cards aren't holding back my potential (guess it's not with the $5,100 approval, but then the $300 cap one approval had me scratching my head...)  Plus, the credit one cards are technically my HIGHEST limit credit cards in my profile also, not store cards like my higher Dell and Jareds account.

 

Any advice?


You totally understand this.   Credit One is like that person you dated when you were younger, and later you realized what a total POS they were.   Yes, they served a purpose, but it's time to move on.   And the sooner you close those turds the sooner they will be off your yearbook, I mean credit reports.

I would keep the Saks and Kohls for now.   No harm, no foul.

I honestly would dump that Cap 1 $300 card.   You will be ancient and they will still be denying you a CLI, while all along (at some point in your future) they might have approved you for 10K - 30K - 50K.   That $300 card is bucketed.

You are on track and you have got this.   And yes, higher limits lead to higher limits.    So don't be afraid to close out the low limit cards in your profile - and I don't care if they are 5 years or 7 years old.   Just dump them already.   You don't want to be stuck with having your oldest card being a POS card.   One exception to this:   If your parents or grandparents are willing to add you as an AU on a 20 year old card, and I don't care if it's got a $100 limit, take it!     


Message 2 of 5
BrutalBodyShots
Super Contributor

Re: Which card(s) do I drop, if any, for better CL in the future?

Dump the cards you don't care about.  Don't under any circumstance SD a card like Credit One and just eat the AF year after year.  Drop those cards.  As for the cards you do have, if any of them offer SP CLIs you can try for those to try and build those limits a bit.  I would also suggest dumping the Capital One card as suggested in the previous post, but it is one of your only major bank cards at the moment.  If I were you I'd look toward less entry-level / store cards and more bank cards as you move forward.  I also don't know nearly enough about your profile to comment, but I would suggest trying to strengthen your profile a bit before going after more cards.  There's a reason for your low limit approvals outside of just having other low limit cards.  I'd imagine there are some areas of opportunity on your CR, so addressing whatever they may be will certainly help future app attempts.

Message 3 of 5
SouthJamaica
Super Contributor

Re: Which card(s) do I drop, if any, for better CL in the future?


@coerciondotde wrote:

So I just got the Jareds ($5,100) and Cap1 Platinum ($300) today. My oldest card is the Saks 5th store card at 4 years. I think the two Credit Ones cards are at 2yrs and 1yr old. Kohls is also about a year old. I'd really like to keep my Saks and Kohls, as I use them and they're practical for me. The ones I think might need to be tossed are CreditOne. I don't care about their fees much as it's once as year, but with respect to scoring....is it better to keep them at $0 and just let them report in a sock drawer or I will I see more benefits from closing out the lower limit $600 one and building up the rest of my TLs? 

As far as I understand, when banks look at your profile, they like to look at other limits and possibly assign one according to the others. If the CreditOne cards aren't holding back my potential (guess it's not with the $5,100 approval, but then the $300 cap one approval had me scratching my head...)  Plus, the credit one cards are technically my HIGHEST limit credit cards in my profile also, not store cards like my higher Dell and Jareds account.

 

Any advice?


If the fee doesn't bother you then don't cancel anything. Cancelling them won't enhance your profile in any way.


Total revolving limits 663000 (585000 reporting) FICO 8: EQ 716 TU 742 EX 713

Message 4 of 5
BrutalBodyShots
Super Contributor

Re: Which card(s) do I drop, if any, for better CL in the future?

I guess it depends on how you define enhance your profile.  In terms of Fico scoring if that's the definition I would agree.  In terms of having a better looking file, I would argue that dumping garbage cards is an enhancement.  Take 2 otherwise identical profiles where each had exactly 5 CCs, except 1 has 5 major bank cards and the other has 5 garbage cards (starter/predatory/store, etc).  If both of these individuals were to apply for credit, my opinion is that the first profile with the 5 major bank cards would be viewed as being a notch above the other.

Message 5 of 5
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