Should I cancel low limit credit cards?

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Location: Florida, USA

Should I cancel low limit credit cards?

Postby ClubMead » Mon May 07, 2012 4:16 pm

As my score is improving and I am looking to apply for more prestigious cards, should I be canceling the crappy card I no longer need or use?

I have a BoA card with a $2k limit, a Discover card with a $3.9k limit and a Capital One card with a $2.25k limit. Should I cancel the Orchard Bank card with a toy limit of $400 before I apply (won't detrimentally affect AAoA as it is my newest card or util. rate as it is under 10% even without the card)?

Do issuers like AMEX and Chase look down on those cards and those who carry them?

My Wallet:

AMEX Platinum - NPSL (obtained in 2012; Backdated to 1989)
AMEX Gold Business - NPSL (obtained 2006; Backdated to 1989)
Chase Sapphire Preferred - $30,000.00 (Obtained 2012)
Discover - $3,900.00 (Obtained 1994)
Bank of America - $5,000.00 (Obtained 2011)
Capital One - $7,500.00 (Obtained 2011)

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Postby Crashem » Mon May 07, 2012 5:20 pm

Orchard cards register as HSBC on your credit report. The only time I have ever seen an automated system take into account what card issuers you have is AMEX and that was with obviously subprime issuers such as first premier. However, issuers issuer initial credit lines off of what they see on your credit report. Sometimes they give you average or high average (take out outliers) or try to get around your highest limit. In your case, I don't think it makes a difference. If you want to keep it around, go for it. If you don't, go for it. I would however cancel it before the next annual fee if any.
Amex Centurion, Amex Platinum, Amex BCP 8k->24k (5/23/12), Amex TE 15k, Cap One 1.5% 15k->20k (8/7/13), CSP 25k, Chase Palladium 100k, Citibank AA 35k (AU), Firestone 1.8k->2.2k->2.4k (8/20/12), JFCU Jloc 30k, PenFed Plat Rewards 30k, SF Fire 30k, US Bank Cash+ 25k

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Location: New York state

Postby Money card » Tue May 08, 2012 9:58 pm

I don't think American Express and Chase looks down on people who have a Orchard card, these cards are for people just starting out.

They may wonder why a person, if they have no credit cards, would apply for theirs.

I suppose if you charge near the limit of $400.00 quite a few times and they don't give you higher limits, you might want to cancel this card.

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