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Closing card strategy...does this look ok?

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Closing card strategy...does this look ok?

My rebuilding has been very successful with the exception of having too many cards now. I've come up with a plan to close & consolidate a few. Just want a few extra sets of eyes for feedback. My utilization is currently 2%, AAoA is 5 years, all 3 scores (cct) are between 770-780, no baddies, & I got an installment loan just to diversify my profile. I'm preparing to buy a car by the end of the year.

 

Here's my portfolio...roughly $180k available credit...(I do have Amex Plat & PRG but I'm keeping them both)

 

Amex EDP - $24,000

Amex BCP - $8,000

Amex SPG - $2,000

PenFed Promise - $5,000

BofA Alaska - $27,200

BofA Cash - $14,800

Citi AAdvantage - $9,500

Cap1 Venture - $12,000

Cap1 QS - $3750

Chase Amazon - $6,500

Sync Amazon - $25,000

Sync Lowes - $25,000

Discover IT Cash - $2,500

Blispay - $6,400

Commenity DSW - $7,000

Target RedCard - $1,600

Barclays Cash Forward - $2,300

 

My plan...

1) my EDP is my daily so I plan on moving my limit from my BCP to my SPG...close BCP...

2) roll Venture to QS, close Venture, & sock drawer QS for emergencies only...

3) close Barclays...really just not a usefull card with low limit & better cash back options...

 

I'm considering...

1) closing both Cap1 cards...high apr with no long term drops possible...

2) closing Target RedCard...I use it solely for the 5% but I'm not sure I buy enough to really keep it...

 

I'm open to suggestions and simply SDing cards if it's better. Just looking to lose a few pounds...

Message 1 of 7
6 REPLIES 6
Super Contributor

Re: Closing card strategy...does this look ok?

I think your plan looks just fine.  I might also suggest closing one of your Amazon cards, probably the Synchrony one since the other is a Chase Visa; there's really no need to have two Amazon cards IMO. 

Message 2 of 7
Super Contributor

Re: Closing card strategy...does this look ok?

I agree with BBS.

 

Two more questions:

 

(1)  Are any of the cards you plan to close your oldest open card?   If so, is the card significantly older than your others?  If so, I would think twice before closing it.  When the account falls off your report in 10 years, it will cause a factor called Age of Oldest Account to drop. 

 

(2) I realize this is a little off topic, but I notice that you write:

 

" I got an installment loan just to diversify my profile."

 

Would you say that you still owe the majority of the balance on that loan?  And is the term of the loan < 37 months?  If either is the case, we can suggest a better approach that will cost you less in interest, get you a bigger score boost, and give you a longer lasting boost.

 

Message 3 of 7
Frequent Contributor

Re: Closing card strategy...does this look ok?

Overall, your plan looks good.  As a side note, you can get a Target Redcard linked to your checking account.  You still get the 5% and no CC to PIF later.  I have had one for years and I love it.


6/5/18 EQ-775, TU-778, EX-771
Last HP - 2/27/18 - Gardening as long as possible
Message 4 of 7
Super Contributor

Re: Closing card strategy...does this look ok?


@Physh1 wrote:

My rebuilding has been very successful with the exception of having too many cards now. I've come up with a plan to close & consolidate a few. Just want a few extra sets of eyes for feedback. My utilization is currently 2%, AAoA is 5 years, all 3 scores (cct) are between 770-780, no baddies, & I got an installment loan just to diversify my profile. I'm preparing to buy a car by the end of the year.

 

Here's my portfolio...roughly $180k available credit...(I do have Amex Plat & PRG but I'm keeping them both)

 

Amex EDP - $24,000

Amex BCP - $8,000

Amex SPG - $2,000

PenFed Promise - $5,000

BofA Alaska - $27,200

BofA Cash - $14,800

Citi AAdvantage - $9,500

Cap1 Venture - $12,000

Cap1 QS - $3750

Chase Amazon - $6,500

Sync Amazon - $25,000

Sync Lowes - $25,000

Discover IT Cash - $2,500

Blispay - $6,400

Commenity DSW - $7,000

Target RedCard - $1,600

Barclays Cash Forward - $2,300

 

My plan...

1) my EDP is my daily so I plan on moving my limit from my BCP to my SPG...close BCP...

2) roll Venture to QS, close Venture, & sock drawer QS for emergencies only...

3) close Barclays...really just not a usefull card with low limit & better cash back options...

 

I'm considering...

1) closing both Cap1 cards...high apr with no long term drops possible...

2) closing Target RedCard...I use it solely for the 5% but I'm not sure I buy enough to really keep it...

 

I'm open to suggestions and simply SDing cards if it's better. Just looking to lose a few pounds...


I don't think the plan would affect your score one way or the other


Total revolving limits 720500 (594000 reporting) 10/2/19 FICO 8 scores: EQ 744 TU 782 EX 746
Message 5 of 7
Frequent Contributor

Re: Closing card strategy...does this look ok?

Oldest cards aren't getting closed..

 

The installment loan is new I'm paying 1k a month or more to get it down. Rate was 7.99% so I'm not worried about it...should be paid off in 6 months or so...

 

I'm willing to consider closing an Amazon card but the special finiancing offers on the sync card make it hard to pass up...

Message 6 of 7
Super Contributor

Re: Closing card strategy...does this look ok?


@Physh1 wrote:

Oldest cards aren't getting closed..

 

The installment loan is new I'm paying 1k a month or more to get it down. Rate was 7.99% so I'm not worried about it...should be paid off in 6 months or so...

 

I'm willing to consider closing an Amazon card but the special finiancing offers on the sync card make it hard to pass up...


You will lose a lot of points when your installment loan closes.  The best choice is to have a loan open for a long time, but have almost all of it paid off very early on.  The solution folks here typically recommend is called the Share Secure Loan Technique and the lender we recommend is Alliant.  You will end up paying almost no interest on it and it will last for five years.

 

This will explain everything you need to know.  You just need to read the first 2-3 posts:

 

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Adding-an-installment-loan-the-Share-Secu...

 

Message 7 of 7
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