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Would it be wise for me to remove First Progress credit card?

DarkKnight_Credit
Established Member

Would it be wise for me to remove First Progress credit card?

Hi everyone, 

 
I started rebuilding my credit for quite some time. I went from 480 (in 2018) to around the 670s recently. With that said, I have 3 cards so far, which is American Express, Capital One, and First Progress. I got pre approved for a Discovered card today and I was wondering would it be wise to replace First Progress with Discover Card? 
 
My average age of credit is 9 months:
 
  • Capital One - 1 year, 7 months
  • First Progress - 7 months
  • American Express - 2 months
 
I used First Progress, because I was advised to use it by a credit builder company. And the total line of credit is only $200. Would this be an ok decision for me to get Discover and remove First Progress?
 
Thanks!
26 REPLIES 26
RSX
Established Contributor

Re: Would it be wise for me to remove First Progress credit card?

is there a monthly or annual fee for it?  if so, keep it until it is 1yr old, then close it

 

if no AF, throw it in a drawer - let them close it for lack of use, but meanwhile you will get some aging with it

 

I would wait 2-3 more months before going for the Discover - you have 2 cards in the last 7 months - give it some time

too soon between apps can mean the highest APR and the lowest CL to start with

 

 

Dec 16/2019. EX. 721. EQ. 723. TU 746
Dec 29/2020 EX. 729 EQ. 723 TU 746
Sept 9/2021 EX. 734 EQ. 737 TU 746
Inq. EX 5 EQ 2 TU 5 - - CC 4x24, 3x12, 0x6
Amex BCP $32k - Apple GS $17k - BMW/Elan $9k - Cap1 QS $16.7k - Chase Amazon $13.6k - Chase Bonvoy Boundless $10k - Chase United Club Infinite $26k - Citi DC $14.5k - CreditUnion1 $9k - DiscoverIT $23k - HSBC Gold - $10.5k - Penfed Gold - $12.5k - USBank Cash+ -$24k - HSBC LOC - $13.5k - PenFed LOC - $20k
Message 2 of 27
thornback
Senior Contributor

Re: Would it be wise for me to remove First Progress credit card?

Yes.  Secure your Disco approval first and wait for it to report.  Then go ahead and close First Progress if you want.  

 

Closed accounts remain on your reports for ~10 years after the date of closure and continue to age and factor into your age of accounts during that time.  The only thing lost from closure is the credit limit.   You'll lose the age when it falls off years down the road, but since it's not your oldest card, any point loss at that time should be insignificant. 

 

Alternatively, you could wait til First Progress ages to the one year mark then close it (this would be for the sake of a longer, fuller on-time payment history). However, if the card is charging monthly fees to keep it open, then close it right away.  If it's annual fee, close right before the next fee is billed.

 

Bottom line:

Scorewise, closing it won't hurt.  If there are fees associated- save your money.  If the card is free to hold - then consider hanging onto it for a bit longer to help build a stronger profile and only charging something small every few months to keep it active -- but if you don't want to be bothered, don't hesitate to close it 

Personal Aphorism:
"Forget What You Feel, Remember What You Deserve"


Starting FICO 8s | 09/2017: EX 641 ✦ EQ 634 ✦ TU 647
Current FICO 8s | 11/2020: EX 780 ✦ EQ 771 ✦ TU 781
Current FICO 9s | 11/2020: EX 793 ✦ EQ 780 ✦ TU 778
2020 Goal Score | 800s


My AAoA: 3.8 years not incl. AU / 4 years incl. AU
My AoOA: 7.10 years not incl. AU / 9.10 years incl. AU
Inquiries: EX 0/6 | 1/12 ✦ EQ 1/6 | 2/12 ✦ TU 0/6 | 1/12
Report Status: Clean


Without patience, we will learn less in life. We will see less. We will feel less. We will hear less. Ironically, rush and more usually mean less.
Message 3 of 27
thornback
Senior Contributor

Re: Would it be wise for me to remove First Progress credit card?


@RSX wrote:

 

I would wait 2-3 more months before going for the Discover - you have 2 cards in the last 7 months - give it some time

too soon between apps can mean the highest APR and the lowest CL to start with


^^This is a good point.  You have a young profile so may benefit from spacing out your apps a bit. 

Personal Aphorism:
"Forget What You Feel, Remember What You Deserve"


Starting FICO 8s | 09/2017: EX 641 ✦ EQ 634 ✦ TU 647
Current FICO 8s | 11/2020: EX 780 ✦ EQ 771 ✦ TU 781
Current FICO 9s | 11/2020: EX 793 ✦ EQ 780 ✦ TU 778
2020 Goal Score | 800s


My AAoA: 3.8 years not incl. AU / 4 years incl. AU
My AoOA: 7.10 years not incl. AU / 9.10 years incl. AU
Inquiries: EX 0/6 | 1/12 ✦ EQ 1/6 | 2/12 ✦ TU 0/6 | 1/12
Report Status: Clean


Without patience, we will learn less in life. We will see less. We will feel less. We will hear less. Ironically, rush and more usually mean less.
Message 4 of 27
DarkKnight_Credit
Established Member

Re: Would it be wise for me to remove First Progress credit card?

Thanks for the tips, everyone! With that said, I'll go ahead and wait until First Progress hits the 1 year mark and start applying for new cards by then. And removing the card afterwards. I should hit up a few points by then Smiley Happy


@RSX wrote:

is there a monthly or annual fee for it?  if so, keep it until it is 1yr old, then close it

 

if no AF, throw it in a drawer - let them close it for lack of use, but meanwhile you will get some aging with it

 

I would wait 2-3 more months before going for the Discover - you have 2 cards in the last 7 months - give it some time

too soon between apps can mean the highest APR and the lowest CL to start with

 


What does that mean? If I apply for a credit now, I would have a higher APR and a lower credit limit, compared to 2-3 months from now?

Message 5 of 27
K-in-Boston
Moderator

Re: Would it be wise for me to remove First Progress credit card?

There are no guarantees with credit limits and APRs, but as a general rule the more time one can place between recent credit-seeking and a new application, the more favorable the terms.

Message 6 of 27
thornback
Senior Contributor

Re: Would it be wise for me to remove First Progress credit card?


@DarkKnight_Credit wrote:

What does that mean? If I apply for a credit now, I would have a higher APR and a lower credit limit, compared to 2-3 months from now?


"Credit seeking behavior" may result in a higher apr and lower limit, yes.  Has nothing to do with your actual scores or payment history.  6 months is the recommended safe zone for time between apps. 

 

That said, you may do just fine. Disco likes young/thin profiles and isn't super sensitive to new accounts.  They also do apr reductions so you could reduce a high apr over time.  

 

Personal Aphorism:
"Forget What You Feel, Remember What You Deserve"


Starting FICO 8s | 09/2017: EX 641 ✦ EQ 634 ✦ TU 647
Current FICO 8s | 11/2020: EX 780 ✦ EQ 771 ✦ TU 781
Current FICO 9s | 11/2020: EX 793 ✦ EQ 780 ✦ TU 778
2020 Goal Score | 800s


My AAoA: 3.8 years not incl. AU / 4 years incl. AU
My AoOA: 7.10 years not incl. AU / 9.10 years incl. AU
Inquiries: EX 0/6 | 1/12 ✦ EQ 1/6 | 2/12 ✦ TU 0/6 | 1/12
Report Status: Clean


Without patience, we will learn less in life. We will see less. We will feel less. We will hear less. Ironically, rush and more usually mean less.
Message 7 of 27
DarkKnight_Credit
Established Member

Re: Would it be wise for me to remove First Progress credit card?


@thornback wrote:

@DarkKnight_Credit wrote:

What does that mean? If I apply for a credit now, I would have a higher APR and a lower credit limit, compared to 2-3 months from now?


"Credit seeking behavior" may result in a higher apr and lower limit, yes.  Has nothing to do with your actual scores or payment history.  6 months is the recommended safe zone for time between apps. 

 

That said, you may do just fine. Disco likes young/thin profiles and isn't super sensitive to new accounts.  They also do apr reductions so you could reduce a high apr over time.  

 


Ineteresting. I didn't know about that. I'll keep that in mind. Thanks!

Message 8 of 27
Remedios
Moderator

Re: Would it be wise for me to remove First Progress credit card?

Your APR is going to be high (ish), but since you're rebuilding you shouldn't be carrying balances anyway. 

 

What does pre-approval lists for APR? 

 

Message 9 of 27
DarkKnight_Credit
Established Member

Re: Would it be wise for me to remove First Progress credit card?


@Remedios wrote:

Your APR is going to be high (ish), but since you're rebuilding you shouldn't be carrying balances anyway. 

 

What does pre-approval lists for APR? 

 


I think it's around 22% for the pre-approval.

Message 10 of 27
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