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2 close or NOT 2 close

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CramEiko
Established Contributor

2 close or NOT 2 close

Hello all and thanks for visiting. I probably know the answer to this but I'm not 100% positive. So here it goes.

 

I have 5 credit cards oldest at 2.6 yrs the newest at 2 months for a about $60k in available credit @ 0% utilization.

 

I also have a BBVA & EECU PLOC for another $10k with about $1k in savings between both, just to hold accounts. Both of these accounts are just about 1yr 4 mo in age. They both report every month in good standing and I've only used them once since opening to keep them activly reporting.. I have No need for these at all and no balance owed.

 

What I would like to do is close both accounts and take savings money out. Does anyone see any harm to this? 

 

Just a little bit more information that may or may not be relevent... I'd like to buy a house in the next few months. Would this effect anything?No bads maybe 6-8 inquiries depending TU or EQ. Last CC was PenFed PCR (age 2mo) and they said that I had a 778 score at the time.

 

 

Thanks for your time.

 

 





Updated Feb 2023:
Citi Double Cash: $26,300
Citi Costco: $33,800
PenFed Power Cash: $50,000
Chase Freedom Unlimited: $33,400
NFCU Cash Rewards: $29,000
BoA Unlimited Cash: $99,900
Wells Fargo Active Cash: $50,000
Citi AAdvantage Executive: $30,500
Wells Fargo Mortgage 30yr fixed 3.625%

Business Cards:
BoA Business Advantage Unlimited Cash: $8,000
Chase Ink Business Unlimited: $75,000
Chase Ink Business Unlimited: $75,000

RIP: EECU PLOC | BBVA PLOC | Chase SP | Chase Amazon | Chase Freedom | WF Propel | Cap1 QS | AMEX Gold | BoA Custom Cash | Lowes | Barclays Aviator Red
Message 1 of 4
3 REPLIES 3
Anonymous
Not applicable

Re: 2 close or NOT 2 close

Closing your accounts won't directly hurt your scores.  Do you have any open installment loans?  Are your PLOC accounts coded as installment loans?  If so, if closing them would result in no installment loans you could lose 25 points or so from your scores.  The simple work around here is to take on the SSL technique, which you can read about on this forum.

 

You said you're at 0% utilization.  If your 5 credit cards are all reporting $0 balances, you're going to want to allow one of them to report a small balance such as $5 in order to scoop up about 20 points across all your credit scores.

 

Finally, if you're looking to apply for a mortgage soon, you don't want to be applying for any credit and/or opening any new accounts.  Closing them is no big deal, but opening them is not a favorable move when you look to apply for a mortgage.

Message 2 of 4
SouthJamaica
Mega Contributor

Re: 2 close or NOT 2 close


@CramEiko wrote:

Hello all and thanks for visiting. I probably know the answer to this but I'm not 100% positive. So here it goes.

 

@I have 5 credit cards oldest at 2.6 yrs the newest at 2 months for a about $60k in available credit @ 0% utilization.

 

I also have a BBVA & EECU PLOC for another $10k with about $1k in savings between both, just to hold accounts. Both of these accounts are just about 1yr 4 mo in age. They both report every month in good standing and I've only used them once since opening to keep them activly reporting.. I have No need for these at all and no balance owed.

 

What I would like to do is close both accounts and take savings money out. Does anyone see any harm to this? 

 

Just a little bit more information that may or may not be relevent... I'd like to buy a house in the next few months. Would this effect anything?No bads maybe 6-8 inquiries depending TU or EQ. Last CC was PenFed PCR (age 2mo) and they said that I had a 778 score at the time.

 

 

Thanks for your time.

 

 


I see no advantage to closing the PLOC's.

1. It's perfectly fine to have PLOC's as reserves. You may even be glad to have them on hand when you go to the closing

2. I'm of the view that it's not good to make changes shortly prior to applying for a mortgage.

3. They help keep utilization down.

 


Total revolving limits 650200 (530700 reporting) FICO 8: EQ 708 TU 714 EX 715

Message 3 of 4
CramEiko
Established Contributor

Re: 2 close or NOT 2 close


@Anonymous wrote:

Closing your accounts won't directly hurt your scores.  Do you have any open installment loans?  Are your PLOC accounts coded as installment loans?  If so, if closing them would result in no installment loans you could lose 25 points or so from your scores.  The simple work around here is to take on the SSL technique, which you can read about on this forum.

 

You said you're at 0% utilization.  If your 5 credit cards are all reporting $0 balances, you're going to want to allow one of them to report a small balance such as $5 in order to scoop up about 20 points across all your credit scores.

 

Finally, if you're looking to apply for a mortgage soon, you don't want to be applying for any credit and/or opening any new accounts.  Closing them is no big deal, but opening them is not a favorable move when you look to apply for a mortgage.


 

 

Thanks for the reply. Kind of what I was thinking.

 

I do have one open installment loan. Toyota Financial Services - Car loan with 1yr of 6yr term completed with no bads.

 

The PLOC's I have with BBVA and EECU are basically just sitting around not being used.





Updated Feb 2023:
Citi Double Cash: $26,300
Citi Costco: $33,800
PenFed Power Cash: $50,000
Chase Freedom Unlimited: $33,400
NFCU Cash Rewards: $29,000
BoA Unlimited Cash: $99,900
Wells Fargo Active Cash: $50,000
Citi AAdvantage Executive: $30,500
Wells Fargo Mortgage 30yr fixed 3.625%

Business Cards:
BoA Business Advantage Unlimited Cash: $8,000
Chase Ink Business Unlimited: $75,000
Chase Ink Business Unlimited: $75,000

RIP: EECU PLOC | BBVA PLOC | Chase SP | Chase Amazon | Chase Freedom | WF Propel | Cap1 QS | AMEX Gold | BoA Custom Cash | Lowes | Barclays Aviator Red
Message 4 of 4
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