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Advice needed for strategically closing cards

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Anonymous
Not applicable

Advice needed for strategically closing cards

Hello all! 

 

I am seeking some advice regarding closing a few cards and what I might expect in terms of my score.  I have been on a years-long credit cleanup mission.  I started with a secured card from Open Sky, a Credit One and a Merrick Bank card- all 2 years ago.  I have since added Discover It, AMEX Cash Magnet, Credit Union and AMEX Marriott Bonvoy Brilliant cards to the mix. My FICO scores currently sit at EX 680 and TU 683. My total utilization across all cards accounts is at 47%, however, I just paid off every card expect my credit union card which has a balance of $350 out of a $2000 credit limit. Here is a breakdown of my cards and their limits:

 

AMEX Bonvoy Brilliant- $3100 ($0 balance not yet reported)

Discover IT- $2800 ($0 balance not yet reported)

Credit Union- $2000 ($350 balance not yet reported)

Merrick Bank- $1300 ($0 balance not yet reported)

AMEX Cash Magnet- $1000 ($0 balance not yet reported)

Credit One- $950 ($0 balance not yet reported)

Open Sky-$300 ($0 balance IS reported)

 

My oldest card is the Open Sky card. I want to close the Credit One card for sure but am wondering if I should close the Merrick Bank cartd as well. Should I also close the Open Sky card or does it hurt to just leave it open? The Credit One and Merrick Bank cards both charge me an annual fee billed monthly.

 

If I close these cards, what can I expect for my score?

 

Thank you for any help and advice!

 

 

Message 1 of 14
13 REPLIES 13
Revelate
Moderator Emeritus

Re: Advice needed for strategically closing cards

Closing cards is a non-issue for the next 10 years (which is basically forever for credit scoring if you continue to use credit at all) unless it materially changes your revolving utilization metrics.

It won’t here so it’s a non-event: proceed with confidence and kick those unnecessary deep subprime cards to the curb.

If you aren’t using any of the 3 (and I wouldn’t with that lineup) and they have an AF, just close it even your oldest account isn’t an issue.



        
Message 2 of 14
Anonymous
Not applicable

Re: Advice needed for strategically closing cards

Should I expect a drop in my score for closing three cards, including my oldest? Note that the oldest is only slightly more than two years.

Message 3 of 14
SouthJamaica
Mega Contributor

Re: Advice needed for strategically closing cards


@Anonymous wrote:

Should I expect a drop in my score for closing three cards, including my oldest? Note that the oldest is only slightly more than two years.


No problem closing Open Sky, Merrick, and Credit One.

 

It won't hurt your scores, now or ever.

 

 


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 4 of 14
Anonymous
Not applicable

Re: Advice needed for strategically closing cards

I just closed my Credit One and Merrick Bank cards!! I was happy they gave me the opportunity to grow my credit profile but I am SO HAPPY to have moved on to bigger and better things!

Message 5 of 14
Anonymous
Not applicable

Re: Advice needed for strategically closing cards

One more question. I paid off the cards to $0 and closed the accounts. Will I owe interest on the outstanding amount from last month up until I paid it off yesterday? Meaning- they closed the accounts but is it possible that I will see a small amount owed pop up for the interest from this month?
Message 6 of 14
Revelate
Moderator Emeritus

Re: Advice needed for strategically closing cards


@Anonymous wrote:
One more question. I paid off the cards to $0 and closed the accounts. Will I owe interest on the outstanding amount from last month up until I paid it off yesterday? Meaning- they closed the accounts but is it possible that I will see a small amount owed pop up for the interest from this month?

Nah, you should be fine.  Paid off / closed is paid off / closed regardless of account type.

 

There's often a "pay off" amount in the online app interfaces, but if the balance is at zero flat, it's zero.




        
Message 7 of 14
Anonymous
Not applicable

Re: Advice needed for strategically closing cards


@Anonymous wrote:
One more question. I paid off the cards to $0 and closed the accounts. Will I owe interest on the outstanding amount from last month up until I paid it off yesterday? Meaning- they closed the accounts but is it possible that I will see a small amount owed pop up for the interest from this month?

If your statement already cut, that statement balance should have included any new interest.  Therefore if you paid your statement balance (interest included) to $0, there shouldn't be any additional interest to worry about.

Message 8 of 14
pinkandgrey
Senior Contributor

Re: Advice needed for strategically closing cards

I like efficiency lol so I would close any and all cards you don’t want anymore. Your AAoA will be unaffected for many years, and even then not a big deal. The only way it could bring your score down is if you have high utilization and losing available credit would max you out or something. I have no strategy for closing. I just do it lol. I recently closed half my cards all at once. No score impact.
Discover It: 21.5k
Amex Cash Magnet: 18k
Fidelity Visa: 13k
Apple Card: 4.25k
Message 9 of 14
KJinNC
Valued Contributor

Re: Advice needed for strategically closing cards

I have a related question that I'll add here to avoid spammy similar threads. But let me know if this should be a separate thread.

 

I just kicked off my rebuild/build process in the past two months and made some decisions I regret, mainly to do with hard inquiries ... can't do anything about those, but I also opened four cards, and long story short, I am wondering if I should close the card I don't want now or whether I should sock-drawer it and close it later. Account age and credit limit are not major factors in this case. I just don't trust the card and am paranoid about some mystery 50-cent charge appearing with no notification and getting dinged for late payment. This card has a payment interface and notification system that I am pretty sure were created by a chortling pimp. My trust level is nil. But I'm probably just being paranoid.



FICO Resilience Index: 64. Cards: 5/24, 2/12, 2/6. Accounts including loans: 8/24, 4/12, 3/6. Card CLs total $213,900, or $240,400 including the AU card. Cards (oldest to newest)

Authorized user / Corporate / Auto loans / Personal loan
Message 10 of 14
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