Why close cards/combine limits?

[Anonymous]

With a longer history and a thick file, worrying about preserving every card is much less compelling.
Bottom line, do whichever makes you feel happier, it makes almost no difference! >>>> Spot on 👌👌👌

[Anonymous]

Forgot to add the other CLD-type stuff.

1) If you keep a card open, and the same issuer won't give you a new card because of exposure, you can offer to close it and maybe get the new card

2) But if you had closed it first, you are more likely to get the new card anyway!

[masscredit]

Good idea combining limits to allow one card to grow much faster then new cards will be more likely to start around that higher limit.  

[Anonymous]

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@masscredit wrote:

Good idea combining limits to allow one card to grow much faster then new cards will be more likely to start around that higher limit.  

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I don't know if that is the case (depending on the CL).   Combining cards does not (of course) in itself change the total CL.    Evidence of issuers "matching" is (IMO) still very vague, and confounded by the fact that you get a good CL on one card because your report is good, and other issuers may make the same decision without any conscious matching. 

The usual big win, especially with Chase, is to open a *new* card, which will often have a CL much greater than any CLI you would get, and then combine that limit with the card you really want.   So its not combining limits that helps, it's getting the new card in the first place.      Now with Chase sensitivity to new accounts, this gets harder!

[bengalikejenga]

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@masscredit wrote:

It seems that a lot of people close cards or combine limits then close one of the two. I can see if there is a A/F but what is the benefit of doing this if there isn't. I look at it as multiple cards have multiple ways of growing. And even if it doesn't grow, it can help thicken the file a little. 

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in my case, as my credit profile grows i would begin to close cards and combine limits to simplify things, i have lots of reminders on my phone, my mint app and calender. 

I would as my profile grows, i would like to simplify things to about having 6-8 major cards that i use on a monthly basis.

and with my credit card profiles, i have quite a few cards that have the same rewards in gas, airline, supermarkets and amazon. soo it would be easier to trim down the cards soo i dont have redundant cards.

with multiple cards sharing the same rewards catergory, it makes it hard to maximize my rewards, especially when i dont spend a lot on my credit cards.

[icyhot]

After I close and combine all the cards I plan on closing and combining, I'll have 8 cards, 6 that I use regularly. I'm weird about having more than 10, so if I ever want to app for another, I'll have some room to do so.

[Anonymous]

I don't want to close of combine any of my cards right now, because I still have a late payment or two showing from years ago. I want all of my cards to report as much as possible so that the percentage of on time payments is increased. I love to see those little green boxes showing that payments are made every month on time.

[noobody]

Another angle to consider, if this particular lender introduce a new product in the future, I could have a option of PC to it, avoiding take one or three HP.

[Anonymous]

I would have to agree. Some say it's foolish to try to get in with every bank out there, for rebuildng it is, but that is a good way to be on the offensive for new rewards opportunities.

[takeshi74]

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@masscredit wrote:

It seems that a lot of people close cards or combine limits then close one of the two. I can see if there is a A/F but what is the benefit of doing this if there isn't. I look at it as multiple cards have multiple ways of growing. And even if it doesn't grow, it can help thicken the file a little.  

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Not everyone decides whether to close or not based solely on the AF despite how popular that meme is around here.  That said, do whatever it is that works for you.

I don't keep cards that are of no use to me.  My cards have grown just fine without the cards I didn't need.  My file is plenty thick without the cards I do not need.  My scores are just fine without the cards I don't need.

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@masscredit wrote:

Good idea combining limits to allow one card to grow much faster then new cards will be more likely to start around that higher limit.  

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Higher limits begets higher limits is yet another popular meme and it's not necessarily correct.  Limits do factor into one's credit profile but there are many other factors as well.  I've received some very low inital limits on recent cards despite having a number of higher limits cards.  One cannot simply assume that having higher limit cards means that all subsequent cards will also have higher limits.

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@noobody wrote:
Another angle to consider, if this particular lender introduce a new product in the future, I could have a option of PC to it, avoiding take one or three HP.

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Though typically you miss out on any sign on bonus.  People here tend to obsess over HP's as well but they'rea relatively small factor and those that see HP's as a denial reason generally have other credit issues that they need to address.