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Close Newest Credit Card??

ak1234
Established Member

Close Newest Credit Card??

Hi all!  

 

I had two CC COs and a Repo that I settled in March 21.  At the same time, in March, I opened a Self Lender loan, Disco Secured $500 SL, Cap One unsecured $500 SL. 

Since then I converted Self Loan to the Self CC $525 limit.  Disco is set to review for grad in the next few weeks, Cap 1 CLI to $1500. I've also added an Apple CC w/ $250 limit, Fingerhut w/ $500 limit, and Wayfair with $300 limit.  I don't actually use the fingerhut or Wayfair.  I do have an installment loan with roughly $13k balance.  

The self card is the newest, has only reported 3 months.  I was thinking of closing it and if Disco doesn't unsecure, adding the funds to my deposit to increase the CL so my available CL remains the same.  

Any major concerns I should be aware of by closing the Self CC? I figured my score might take a dip.  Is keeping this extra card helping with on time payment % etc.  

 

I've come from 570-Ex March - 522-Ex in May to 655-Ex 651-Eq 661-Tu.

 

TIA!!

 

Message 1 of 6
5 REPLIES 5
NYC_Fella
Regular Contributor

Re: Close Newest Credit Card??

Closing a card will decrease your utilization but will not affect your average account age. You do want to have 6-7 open accounts for score optimization.

Message 2 of 6
RSX
Valued Contributor

Re: Close Newest Credit Card??

you can close it  - score shouldnt be impacted

 

i would also close the Fingerhut and Wayfair over the next couple of months

 

you have the Cap1 - Disco  - Apple  - and an Installment loan

 

that is all you need for now - move forward with the 'good' cards and lose the old, rebuilding ones

 

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 $19k - 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 - $13k - Penfed Gold - $12.5k - USBank Cash+ -$24k - HSBC LOC - $13.5k - PenFed LOC - $20k
Message 3 of 6
ak1234
Established Member

Re: Close Newest Credit Card??

Thanks! That's the plan, only have them to increase available credit.  

Message 4 of 6
GrandBay
Frequent Contributor

Re: Close Newest Credit Card??

@ak1234 

would close FingerHut & Wayfair first

unless, you want the cash from Self return 

as I think FH & Wayfair are unsecured

 

Self has a $25 annual fee 

which you have paid

I would hold onto the card for the next 9 months and close before the next AF

sock drawer it until then

Message 5 of 6
FireMedic1
Super Contributor

Re: Close Newest Credit Card??

It would be best to stay the way it is now and not drop into the thin file area. A "thin" credit file typically means a credit history of less than five accounts or one where the accounts on it have been open for just a short time. A "thick" file generally is someone that has more than five accounts that have been open for longer periods of time. Once you get a better card. Then 1 by 1 replace the mentioned ones. Shows future creditors that you can handle multiple accounts.






Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery from the @ 540's.
Message 6 of 6
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