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Closing low credit limit cards--good idea or not

rchvmz
Established Member

Re: Closing low credit limit cards--good idea or not


@Nikita2008 wrote:

I guess if you are looking for a direct response on you score it could go either way.

 

I have closes 4 of those cards, in 2 instances my score went up, I one instance it stayed the same, and in one it went down. 

The effect has more to do with utilization than the cards themselves. I was not carrying  a balance on those cards ( nor would I care to at those rates), it becomes an issue to remember to log in just to pay them their fees to have the card.

 

IMO you are better off securing with a prime issuer where you can grow. 


Thank you----I was cuious about how it could effect my score AT THIS JUNCTURE-----I am right at discharge of BK---will have a share loan added to my file in a month along with the cards I have, which I use the AZEO concept with. I do not have a Destiny card, yet the First Acess card is a loser for sure, but it was THE 1st card I got an offer for during the BK--so I grabbed it. If its not going to effect my score drastically, then I am closing it--however, if closing it could effect my score vs just paying the 49.00 AF, then the 49.00 is worth leaving it for a nother year, as my scores will improve drastically in that year--then closing it may not have as much an effect-----

Message 31 of 44
FireMedic1
Super Contributor

Re: Closing low credit limit cards--good idea or not


@rchvmz wrote:

 

--------NFCU--Discover--Cap 1---Amex--Barclay---Boa-----These are the guys in the BK. 

Well theres always no fee Merrick Bank Secured. They will give you a CLI without adding more money with a good history. Avg 7 months or so. The money your putting out a month and year could go to a savings account. You really only need 3 cards and some type of an installment loan.  After a yr or so Cap1 will let you back in. So theres something to look forward to. Just trying to show a little different way to get you out of the vulture fee cards. Closing a card doesnt really hurt a score as long as the oldest one stays open. JMO. Ditch some of the newer ones. Especially the higher fee cards. Why make banks richer with fees. That money can go to you. So try for a Merrick and go the secured route if you can.

Merrick Bank: https://securedcard.merrickbank.com/ 






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 @ 540's.
Message 32 of 44
rchvmz
Established Member

Re: Closing low credit limit cards--good idea or not


@FireMedic1 wrote:

@rchvmz wrote:

 

--------NFCU--Discover--Cap 1---Amex--Barclay---Boa-----These are the guys in the BK. 

Well theres always no fee Merrick Bank Secured. They will give you a CLI without adding more money with a good history. Avg 7 months or so. The money your putting out a month and year could go to a savings account. You really only need 3 cards and some type of an installment loan.  After a yr or so Cap1 will let you back in. So theres something to look forward to. Just trying to show a little different way to get you out of the vulture fee cards. Closing a card doesnt really hurt a score as long as the oldest one stays open. JMO. Ditch some of the newer ones. Especially the higher fee cards. Why make banks richer with fees. That money can go to you. So try for a Merrick and go the secured route if you can. And theres other like no fee Aspire. See if you qualify:

https://www.aspire.com/pre-qualify/?utm_medium=search&utm_source=google-search&utm_campaign=acc-goog... 

Merrick Bank: https://securedcard.merrickbank.com/ 


I have the Aspire card, and will have a PenFed share loan in two weeks----that will give me the installment loan mix needed. I am all for getting some secured cards, and getting rid of some of the crapola unsecured cards that are just AF sharks------does Merrick secured require a HP to get it?---I would sink a 1000-2000 into a decent secured card---advise please, as it looks to me you been there doen this....experineced rebuilders is what I am looking for, for advice..thank you

Message 33 of 44
rchvmz
Established Member

Re: Closing low credit limit cards--good idea or not


@rchvmz wrote:

@FireMedic1 wrote:

@rchvmz wrote:

 

--------NFCU--Discover--Cap 1---Amex--Barclay---Boa-----These are the guys in the BK. 

Well theres always no fee Merrick Bank Secured. They will give you a CLI without adding more money with a good history. Avg 7 months or so. The money your putting out a month and year could go to a savings account. You really only need 3 cards and some type of an installment loan.  After a yr or so Cap1 will let you back in. So theres something to look forward to. Just trying to show a little different way to get you out of the vulture fee cards. Closing a card doesnt really hurt a score as long as the oldest one stays open. JMO. Ditch some of the newer ones. Especially the higher fee cards. Why make banks richer with fees. That money can go to you. So try for a Merrick and go the secured route if you can. And theres other like no fee Aspire. See if you qualify:

https://www.aspire.com/pre-qualify/?utm_medium=search&utm_source=google-search&utm_campaign=acc-goog... 

Merrick Bank: https://securedcard.merrickbank.com/ 


I have the Aspire card, and will have a PenFed share loan in two weeks----that will give me the installment loan mix needed. I am all for getting some secured cards, and getting rid of some of the crapola unsecured cards that are just AF sharks------does Merrick secured require a HP to get it?---I would sink a 1000-2000 into a decent secured card---advise please, as it looks to me you been there doen this....experineced rebuilders is what I am looking for, for advice..thank you


The Merrick secured card says it will not approve someone if they do NOT have a discharged BK--meaning if its an active BK, they will not accept the app.

Message 34 of 44
Nikita2008
Contributor

Re: Closing low credit limit cards--good idea or not

When I did lose points on a closure it was small (  3 points once, and 1 point on another). It stayed the same on one, and it went up 7 or 8 when First Access  closed, so I guess it balanced out.

Message 35 of 44
Zosimus
Valued Member

Re: Closing low credit limit cards--good idea or not

My opinion, FWIW, is that you should take a serious look at any card whose age is less than your average age of accounts. My average is about 2.5 years, so I would close a 10-month-old account very quickly unless I felt it was adding value to my life in some way.


Message 36 of 44
Horseshoez
Valued Contributor

Re: Closing low credit limit cards--good idea or not


@Zosimus wrote:

My opinion, FWIW, is that you should take a serious look at any card whose age is less than your average age of accounts. My average is about 2.5 years, so I would close a 10-month-old account very quickly unless I felt it was adding value to my life in some way.


Please help me understand, what difference does closing a 10-month old card versus a 10-year old card when it comes to AAoA?

I categorically refuse to do AZEO!

Message 37 of 44
rchvmz
Established Member

Re: Closing low credit limit cards--good idea or not


@Horseshoez wrote:

@Zosimus wrote:

My opinion, FWIW, is that you should take a serious look at any card whose age is less than your average age of accounts. My average is about 2.5 years, so I would close a 10-month-old account very quickly unless I felt it was adding value to my life in some way.


Please help me understand, what difference does closing a 10-month old card versus a 10-year old card when it comes to AAoA?


I am 34 months into a 36 month chpt13 BK--my AAoA is 3.7 years--but thats taking into consideration stuff in the BK--the cards I have now are all in the last year--oldest being 10 months. If I closed anything less than the avg age, I have to close tham all. Makes no sense to me

Message 38 of 44
Zosimus
Valued Member

Re: Closing low credit limit cards--good idea or not

As I said, I'd take a hard look at anything under your average age of accounts and ask yourself: Is this card really adding value to my life? For example, I have a 2-month-old Vantage West CC. Am I going to close it? No. There's something about 5% cash back that makes me think, "Hey! This card is definitely worth it!"

 

Now, if you can't look at a card and figure out whether it's punching above its weight, then I feel for you. However, I can't help you with that any more than I can help someone who doesn't see the difference between closing a 10-month-old account and a 10-year-old one.


Message 39 of 44
rchvmz
Established Member

Re: Closing low credit limit cards--good idea or not


@Zosimus wrote:

As I said, I'd take a hard look at anything under your average age of accounts and ask yourself: Is this card really adding value to my life? For example, I have a 2-month-old Vantage West CC. Am I going to close it? No. There's something about 5% cash back that makes me think, "Hey! This card is definitely worth it!"

 

Now, if you can't look at a card and figure out whether it's punching above its weight, then I feel for you. However, I can't help you with that any more than I can help someone who doesn't see the difference between closing a 10-month-old account and a 10-year-old one.


 

 Every card I have is under my AAoA-----Im 34 months into a 36 month Bk----your suggestion is confusing to me. You seem to be frustrated

Message 40 of 44
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