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Unused accounts - Keep or trash?

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jayjayhawaii
Regular Contributor

Unused accounts - Keep or trash?

Hi all,

 

I've gotten rid of all my high APR/annual fee builder cards - Credit One, First Premier etc. All in the trash now Smiley Happy

 

My question is regarding no-AF accounts like Fingerhut. I have no use for a Fingerhut account. Their stuff is all overpriced and the APR is 30%. I don't pay anything to keep the account open, but it's a bit annoying to have it - It just feels bad for the soul.

 

Besides utilization ($900 out of $60,000 tcl), is there any FICO score benefit in keeping it open?

 

(I charged $90 to it 9 months ago and they offered me a $100 "temporary CLI")


Current FICO8:


2017: $200 secured card | 2023: $200,000+ total credit line
6 REPLIES 6
RSX
Valued Contributor

Re: Unused accounts - Keep or trash?

You answered your own question.    Dump it.

 

"I have no use for a Fingerhut account. Their stuff is all overpriced"

Dec 16/2019. EX. 721. EQ. 723. TU 746
Jan 25/2024 EX. 774 EQ. 751 TU 758
Inq. EX 2 EQ 3 TU 6 - - CC 2x24, 0x12
Amex BCP $35k - Apple GS $21k - BMW/Elan $19k - Cap1 QS $16.7k - Chase Amazon $13.6k - Chase Bonvoy Bountiful $10k - Chase United Club Infinite $26k - Citi CustomCash $3k - Citi DC $14.5k - CreditUnion1 $9k - DiscoverIT $31.5k - PayBoo - $15.6k - Penfed Gold - $19.3k - USB AltitudeGO -$19k- USBank Cash+ -$25k - PenFed LOC - $20k - USB LOC - $15k
Message 2 of 7
Trudy
Valued Contributor

Re: Unused accounts - Keep or trash?

If I'm reading correctly, this card gives you 60K in CL with only $900 used/UTL?  Closing it should not require you to lose the age of the account immediately as it may still remain on your credit report for 10 yrs, but the reduction in total CL versus UTL could be an issue score wise if you have other balances on revolvers.  You lose the total used/vs available equation = AGG UTL.

 

60K with only $900 UTL is greatly padding your AGG UTL.  I don't advocate using this card if you have no use, but when you decide to close, the CL will no longer be included in your available CL.  So you may have to think about it regarding bringing down other UTL to not go from low AGG to high AGG UTL (don't know as this information is not provided)

 

Bottom line is you lose the padding of all CL divided by UTL. I'm all for cleaning house for useless cards but it's good to know how it may eventually impact your AAoA (as 10 yrs in not absolute) and how it impacts you AGG UTL % when removing 60K from available credit.  May need to have a plan before closing, may not...

FICO - 8: 05/05/23
Message 3 of 7
RSX
Valued Contributor

Re: Unused accounts - Keep or trash?

I read the post that they 

1. Have 60k in total lines

2. Fingerhut is $900 cL

 

so they would still have 59100 in total cL left.   

therfore close it. No util impact.  

Dec 16/2019. EX. 721. EQ. 723. TU 746
Jan 25/2024 EX. 774 EQ. 751 TU 758
Inq. EX 2 EQ 3 TU 6 - - CC 2x24, 0x12
Amex BCP $35k - Apple GS $21k - BMW/Elan $19k - Cap1 QS $16.7k - Chase Amazon $13.6k - Chase Bonvoy Bountiful $10k - Chase United Club Infinite $26k - Citi CustomCash $3k - Citi DC $14.5k - CreditUnion1 $9k - DiscoverIT $31.5k - PayBoo - $15.6k - Penfed Gold - $19.3k - USB AltitudeGO -$19k- USBank Cash+ -$25k - PenFed LOC - $20k - USB LOC - $15k
Message 4 of 7
SouthJamaica
Mega Contributor

Re: Unused accounts - Keep or trash?


@jayjayhawaii wrote:

Hi all,

 

I've gotten rid of all my high APR/annual fee builder cards - Credit One, First Premier etc. All in the trash now Smiley Happy

 

My question is regarding no-AF accounts like Fingerhut. I have no use for a Fingerhut account. Their stuff is all overpriced and the APR is 30%. I don't pay anything to keep the account open, but it's a bit annoying to have it - It just feels bad for the soul.

 

Besides utilization ($900 out of $60,000 tcl), is there any FICO score benefit in keeping it open?

 

(I charged $90 to it 9 months ago and they offered me a $100 "temporary CLI")


You should dump it. You'll feel better.


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

Message 5 of 7
yapsalot
Regular Contributor

Re: Unused accounts - Keep or trash?

Jayjay

 

Looks like you are wisely moving away from low level or subprime lenders. I'm not sure but I think Fingerhut is inconsistent with your present approach to credit. So I agree with the others who say dump them.

Yapsalot
Message 6 of 7
Anonymous
Not applicable

Re: Unused accounts - Keep or trash?

Dump it
Message 7 of 7
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