@SouthJamaica wrote:
@CreditCuriosity wrote:Really depends if you value the CU.. basically at one point first tech said I would have to cut a few hundred k off my credits for them to approve me as i was a liability to them and I laughed and said the only thing special about your card is pin priority and moved on. With that said I try to cancel cards that have sub par rewards, higher aprs or lower cl's and keep rinsing and repeating. I do understand where lenders are coming from as one can suddenly get it a spiral of debt and then a bk happens if a person goes crazy with alot of credit vs. income, etc.. So CU's are very sensitive to this along with more conservative banks such as simmons, iberia and the likes. I have talked with a few UW of smaller banks and they said you have alot of credit, but approved me anyways for good limits, but i try to keep in mind my agreegate CL across all cards and try to trim it when possible by cancelling less desirable cards as if I was to max out even half of my credit I would be in deep crud
. So I love having the 30-60k cl's and have quite a few of them I have to keep in mind also what other lender think. So I believe it really comes down to the lender, yes it will help on some CU's if you really want, etc...Some banks dont really care atm, but if a credit crunch comes then they might. Do what makes you feel most comfortable basically.
Yes I really value the ones that turned me down for CLI's or new cards. But I wonder if cutting out a few of the others will actually enhance my standing with those that turned me down.
Only if they tell you exactly by how much you're exceeding what they consider acceptable.
For all you know, it could be $250K
Have they communicated to you what they consider too much?
@Remedios wrote:
@SouthJamaica wrote:
@CreditCuriosity wrote:Really depends if you value the CU.. basically at one point first tech said I would have to cut a few hundred k off my credits for them to approve me as i was a liability to them and I laughed and said the only thing special about your card is pin priority and moved on. With that said I try to cancel cards that have sub par rewards, higher aprs or lower cl's and keep rinsing and repeating. I do understand where lenders are coming from as one can suddenly get it a spiral of debt and then a bk happens if a person goes crazy with alot of credit vs. income, etc.. So CU's are very sensitive to this along with more conservative banks such as simmons, iberia and the likes. I have talked with a few UW of smaller banks and they said you have alot of credit, but approved me anyways for good limits, but i try to keep in mind my agreegate CL across all cards and try to trim it when possible by cancelling less desirable cards as if I was to max out even half of my credit I would be in deep crud
Yes I really value the ones that turned me down for CLI's or new cards. But I wonder if cutting out a few of the others will actually enhance my standing with those that turned me down.
Only if they tell you exactly by how much you're exceeding what they consider acceptable.
For all you know, it could be $250K
Have they communicated to you what they consider too much?
No, not at all. None have said anything like that. And I doubt going from 619500 to 594500, or even down to 569500,
is going to make a world of difference to anyone, but if it's the right direction for me to go, I guess I should.
@CreditCuriosity wrote:
Agree I think personally the FICO model is broken. Why give a person say a 10k CL if in all reality one should not use more than 3k of that CL to keep their scores in good shape or really < 10% if they want the best scores. So this is why alot of us seek large CL to have the least impact on our scores and then banks wonder why we have such large CL's or aggregate credit, etc.. iMO how utilizaton is considered is messed up. Just my humble opinion and the is the 2nd biggest factor on how FICO weighs scores
I have several gripes about how FICO scores are calculated, although with the caveat that some of my opinions are based on the fact that I am in a rather unusual situation with my credit at the moment (my FICO 8 scores are enormously better than my real-world odds of approval in most situations). It probably works for most people/situations. But, I agree about the utilization thing. That rewards people for gaming the system by getting credit limits they don't actually need and won't use.
I would close what you don't use, it can be a nice feeling. Util only matters when apping and you can always lower it to 0% if needed unless carrying large balances.
As far as any lender is concerned a lower % of total unsecured credit to income is always better. They would rather you only have $50k in unsecured credit lines as opposed to $500k. All other things being equal it is less risk to them of you getting way over your head in debt. I think we forget how strange our credit profiles actually are and how lenders see it. Average consumer doesn't have 30+ accounts on their profile and 15+ actively open credit cards with total unsecured credit lines 4x their annual income 😁. Places with less of a money pool tend to care more about the risk of lending money when it seems like you already have access to a lot that you aren't using.
As far as any lender is concerned a lower % of total unsecured credit to income is always better. They would rather you only have $50k in unsecured credit lines as opposed to $500k. All other things being equal it is less risk to them of you getting way over your head in debt. I think we forget how strange our credit profiles actually are and how lenders see it. Average consumer doesn't have 30+ accounts on their profile and 15+ actively open credit cards with total unsecured credit lines 4x their annual income 😁. Places with less of a money pool tend to care more about the risk of lending money when it seems like you already have access to a lot that you aren't using.
OK I made my decision. For better or for worse, I pulled the plug on a 25k card which had become useless to me.
Thank you all for your input. It really helped me think it through.
@SouthJamaica wrote:OK I made my decision. For better or for worse, I pulled the plug on a 25k card which had become useless to me.
Thank you all for your input. It really helped me think it through.
Congrats, now plan the next 5 
@Kforce wrote:
@SouthJamaica wrote:OK I made my decision. For better or for worse, I pulled the plug on a 25k card which had become useless to me.
Thank you all for your input. It really helped me think it through.
Congrats, now plan the next 5
Uncanny. You read my mind.
After I pulled the plug on it, it felt a little scary, but it felt so good that I immediately went into action laying the groundwork for the next one. I only had 2 useless cards, so when this one goes I will be still.
