Close a Tradeline

[thornback]

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@ironchef wrote:

my Utl is 4% and thats with 8 cards which after the one i close it will remain the same . i only carry a balnace on 3 cards all which are very low balance the others aways zero 

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FYI, Brian was referring to % of cards with balances, not util. 

[Brian_Earl_Spilner]

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@thornback wrote:

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@Brian_Earl_Spilner wrote:

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@thornback wrote:

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@ironchef wrote:

Thank you for the detail infomation and reponse!. Most of which I was apprised of but was not certain of some other items. The limit will not affect my Utl and the age of card is 2-3 years old. I was uncertain of the amount of tradelines open on report to change which I thought can affect the score ?

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Number of open tradelines affects numbers of cards with balances, which can impact your score.   That's why the recommended is 3 or more, so you can always manage 1/3 or less reporting a balance if you need to optimize scores (like azeo).  If you'll still have 3+ remaining, no worries. 

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EQ requires 4, I believe. There's also speculation that there's a 20% use threshold which would require 5 cards. I haven't looked into it, but I believe @Anonymous was talking about it.

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Really? EQ requires 4?  I did not know that. 

I am aware of the 20% threshold - it affects my profile, good for 3-5 points. 

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Yeah, apparently @Anonymous tested it and they have a threshold at 25%. May have been someone else, don't remember.

[Anonymous]

@Brian_Earl_Spilner Can you give me any further information on that 25%threshold and where I can find out dps on that by chance?

@thornback thank you for confirming that 20% threshold.

@AllZero

[Brian_Earl_Spilner]

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@Anonymous wrote:
@Brian_Earl_SpilnerCan you give me any further information on that 25%threshold and where I can find out dps on that by chance?

@thornbackthank you for confirming that 20% threshold.

@AllZero

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Oh, shoot. Let me see if I can find it. I'm almost 100% sure it was by bbs, but it could have been @SouthJamaica 

[Anonymous]

Because we know there’s one at 20 we’re trying to determine if the next one is at 25 or 33%.

Thanks!!

[SouthJamaica]

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@Brian_Earl_Spilner wrote:

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@Anonymous wrote:
@Brian_Earl_SpilnerCan you give me any further information on that 25%threshold and where I can find out dps on that by chance?

@thornbackthank you for confirming that 20% threshold.

@AllZero

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Oh, shoot. Let me see if I can find it. I'm almost 100% sure it was by bbs, but it could have been @SouthJamaica 

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I think I had once done some posts speculating that when I crossed the line of 30% of my revolving accounts posting a balance, there was a change in EX FICO 2, and wondering if there was also something like that at 20%. Don't recall if I ever found out.

[pinkandgrey]

Since the limit is small, then I assume utilization won't be much affected. 

If it's in good standing, then the account will report for many years to come. (And by then the "loss" won't matter.)

Many people would advocate keeping it open and putting a small charge on it occasionally just to show use. If you want to do that, that's an option. 

For me personally, I would never keep a card open if I didn't use it--even if it DID have a huge limit. I favor simplicity and peace of mind (I'm a control freak.) over the slight scoring benefits. 

Overall, you would be completely fine closing it. Your score wouldn't take much of a hit at all. Totally up to you, of course! 

If you do close, just call the issuer and make sure that it will report as "Closed by Consumer."
Good luck!

[Anonymous]

I'd get rid of it. Low limit which won't hurt utilization, and its a card that won't grow. 

Going forward, you want to keep your good cards open for a long time to build a strong AAoA with several cards.

[ironchef]

lol As I am and Thank you for your infomation ! 

[ironchef]

Agreed about cards AAoY and I am about 99% to close card .. Wasnt sure to replace card with another tradeline. I have my pick but unsure if thats even a option ?