4yr old secured cards... keep & reduce limit or close?

[Anonymous]

Hello Community, Thank you for your continued guidance! I appreciate your help dearly and need a bit of advise. I have 2 secured CC's each with 5k limit that I've used to build credit. They are now just over 4 yrs old and they are the oldest CC's on my reports. They each have a annual fee, high interest and no rewards. I've obtained 6 unsecured cards with larger limits in the past couple of years. My score is 750 with 4% util on a 0% card with rewards and that is all I use. Now, should I close the secured cards completely or should I reduce their balance to $500 and keep them open? Since they are the oldest ones, I want to make the best move possible with regards to keeping my score. Thanks again!

[itgirl74]

Close the cards and get your money back. The accounts will stay on your credit reports for at least 10 years after the close date, so closing these accounts should not affect your AAoA, nor will it affect your score unless it brings your utilization much higher. (Even if that's the case, I'd close the accounts and use the refunded deposits to pay off anything you owe on your other cards.)

[stellar]

Who are the secured cards with?  You may be able to graduate them and keep the history, get your money back and maybe even get rewards added.

[Anonymous]

USAA... From what I know, if I apply with them then it counts as a new card, no existing history is kept. I'll call again for good measure.

[stellar]

All of them are with USAA?

[Anonymous]

I'm glad I checked here, I'm in the same situation. I've got an AMEX and a VISA with USAA and both have a secured limit of $5k. I'm much lower on the score like 650 but I am trying to climb higher. If I close at least one card it will reduce my debt as I have a high balance on both.but also it will close my oldest card. I think after ready your replies, I will close one and see what it does. if it has a positive effect I will close the other one.
Thanks Community

[Adkins]

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@Anonymous wrote:
I'm glad I checked here, I'm in the same situation. I've got an AMEX and a VISA with USAA and both have a secured limit of $5k. I'm much lower on the score like 650 but I am trying to climb higher. If I close at least one card it will reduce my debt as I have a high balance on both.but also it will close my oldest card. I think after ready your replies, I will close one and see what it does. if it has a positive effect I will close the other one.
Thanks Community

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It's not wise to close an account with a balance showing. 

[Anonymous]

Actually I will satisfy the debt with the CD I purchased to set it up to begin with 4 years ago as the CD matured 2 years ago. Then what's leftover will go in my checking or savigs account.

[Adkins]

Ok. 

[Anonymous]

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@Anonymous wrote:
Actually I will satisfy the debt with the CD I purchased to set it up to begin with 4 years ago as the CD matured 2 years ago. Then what's leftover will go in my checking or savigs account.

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You may take a minor score hit closing them, depending on the age of your unsecured accounts. One of the things that FICO awards points for is the age of your oldest active account - this is different from AAoA. It will be temprorary, as you will regain those points as you unsecured accounts age past 4 years.