should i close sub prime cards before app spree?

[johnpalley]

heres the cards i have

elan financial  $5500 limit   7 year old account

macy's store card $3500 limit 14 year old account

nordstrom store card  $2500 limit 3 year old account

sub prime cards are

credit one $1700 limit   5 year old account

cortrust  $600 limit    5 year old 

first national $600 limit  5 year old

pretty much all these cards are maxed out but i have the cash to bring all these accounts to $0 tomorrow if i want. my credit score is 720-730 even though these are maxed out so as soon as there paid il have top notch credit. i just bumped into a post on another thread that said prime lenders dont look at you favorably if you have active subprime account. im about to pay off everything and open 2-3 new cards in one day. my question is

should i cancel my credit one, cortrust, and first national credit cards before i go on this app spree? i planned to close them anyway but my plan before was to close them after the app spree. now that i saw that post it has me thinkin. im gonna get a bofa, usaa, and i havent decided on the third. i dont want these companies to look at me the wrong way because of these 3 garbage accounts you know

[AeroKrix]

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@johnpalley wrote:

heres the cards i have

elan financial  $5500 limit   7 year old account

macy's store card $3500 limit 14 year old account

nordstrom store card  $2500 limit 3 year old account

sub prime cards are

credit one $1700 limit   5 year old account

cortrust  $600 limit    5 year old 

first national $600 limit  5 year old

pretty much all these cards are maxed out but i have the cash to bring all these accounts to $0 tomorrow if i want. my credit score is 720-730 even though these are maxed out so as soon as there paid il have top notch credit. i just bumped into a post on another thread that said prime lenders dont look at you favorably if you have active subprime account. im about to pay off everything and open 2-3 new cards in one day. my question is

should i cancel my credit one, cortrust, and first national credit cards before i go on this app spree? i planned to close them anyway but my plan before was to close them after the app spree. now that i saw that post it has me thinkin. im gonna get a bofa, usaa, and i havent decided on the third. i dont want these companies to look at me the wrong way because of these 3 garbage accounts you know

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I believe that the subprime unfavorability is a myth... But what does come into consideration is your limits with these "subprime" cards. IMO, lenders see low limits and they probably assume that your current lenders don't want to extended extra credit to you for some reason, and thus making you look unfavorable. It's a subprime lenders nature to give really low limits because the fee caps on 1st year maxes out at around $75 (which doesn't include activation and such), and it can't be more than 25% of the credit line... and that magic number is around $300. And as subprime card members mature and become more responsible, no-fee CLI's aren't in their best interest since most often the person won't use the limit near max. So, to me, that's the loop that subprime lenders like to stay in. Keep it low, so there could be a chance they can hit you with over limit fees and penalty APR's.

now back to topic... I would suggest you pay off those balances to $0 and keep 1 card reporting 1-5%. Wait till it reflects onto your CR and then make your app spree. Once you have those new cards, let your entire credit portfolio mature for at least six months before closing, or prior to any AF...whichever comes first. If your AF on those subprime cards are coming soon, call to have them waived... all the better... Keep the cards for longer and SD them till the next AF comes along.

[johnpalley]

yeah but you said the low limits hurt so why shouldnt i cancel them first?. just trying to understand your frame of mind. does cancelling the 3 accounts first hurt me? if so how? im so sick of even seeing those garbage accounts that i pay monthly fees on you know

[JoshuaHolySpirit]

Looks like your 3 cards (subprime) are 5 years old. Wow, I'm suprised you did not apply for any other credit cards since your rebuilding, and you call those 3 cards garbage. I do not understand your logic......baddies???....

[johnpalley]

i just got done rebuilding. i just had like 5-7 charge offs come of my reports last year all at the same time lol. the elan started off as a secured card. now its time to get some real cards know what im sayin? a $600 credit limit in 5 years that annoys the crao outta me lol c'mon now. im sick of even payin these clowns money

[Shock]

if I were in your shoes, I would zero all those cards out, make sure they are all at 0, and leave them open. Then app for what you want. Once you get approved, I would close them immediately, especially if they have annual fees or monthly maintenance fees. If they are all free to maintain, then keep them open and sock drawer them for 5 years.

[johnpalley]

shock that was my original plan. do you see them starting me off at lower limits because of these accounts though? thats what im worried about. im prob making a bigger deal outta this than it really is though

[Shock]

Depends on the lenders IMO. Given your prime limits, I think you'll be fine and should have no problem getting some decent limits. I will say though, what is a decent limit to you? 1.5k? 2k? 3k? 

However, having considered the subprime and lenders thing, I think I'd do more research on the internet and see if there are any specific ones that may shy away, even if it is just anecdotal evidence. Better to make an informed decision than to make one with assumptions, especially one such as this, which is VERY ambiguous.

[johnpalley]

a descent limit for me to start off would be 5k minimum. i dont see why not with a 740 or so score. i hear you im gonna wait for more people to respond in this thread to hear peoples opinions. appreciate the advice. i gotta go to sleep now il check in with you guys tomorrow

[coldnmn]

Closing the sub prime cards they will still be a positive TL for 10 years. So closing them will not hurt you other then utilization if you decide to carry balances again. IMHO