Still preserving TCL?

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CarefulBuilder14
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Still preserving TCL?

Postby CarefulBuilder14 » Fri Sep 09, 2016 11:55 pm

When I had a fairly limited credit history and just a few cards, every dollar of my total credit limits felt important. I didn’t push hard for CLIs, but I’d have felt uneasy about closing a no-AF card, or moving a CL in such a way that I couldn’t save all of it.

When I got a SL of $7,500 on my CSP, I had a pretty clear realization that between CSP and my NPSL PRG, I had enough credit to meet my spending needs as a PIFer. Up until then it was a valid concern, since my wallet was Discover/Amex-heavy and limited acceptance was a concern. I did at least have a $4,500 Sallie Mae, but wasn’t thrilled about just earning 1% cash on major transactions. I didn't need to carry balances, so wasn't worried about utilization.

I’ve kept most of my cards open, but if/when I close more, I see preserving my existing CLs as a pretty low priority. I’m certainly not concerned about losing $500 or $2000 in credit due to some bank’s particular rules about moving CLs. Banks can take away CLs at any time, and it’s generally not hard for someone with a decent profile to get new “replacement” credit after an old card is closed…especially when a bank is pushing a card with a nice bonus.

How do others feel? Who's carefree about losing total CL, and who tries to hold on to every dollar?
Keeping indefinitely: IHG, SchwabPlat, CSP, Discover, Freedom, ED, BCE, Hyatt
May close or PC: Prestige, Arrival, BrooksBros
AA Platinum converting into Costco

Might add: Proper business card, CSR, Ritz, Delta Gold, First Tech
Letting new accounts cool off since May


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17thWhitePrince
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Re: Still preserving TCL?

Postby 17thWhitePrince » Sat Sep 10, 2016 12:22 am

Well, for me, I'm all about the numbers (the decimal numbers of course!)
(I mean it's nice to look back and say I have this rather decent amount of spending power at my fingertips)

however . . .

because your credit utilization percentage is what's taken into account more so than your overall credit limit, and just so long as your overall percentage of use doesn't sway too much, I'd just be "as cool as the other side of the pillow"

'no worries man'
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|EX 738 | TU 742 |

In 2016 I've increased total CL by $21,000
Only c/c not shown is 'ArtVan' which will be cancelled once it is paid off by Feb 2018

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Tubpbs
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Re: Still preserving TCL?

Postby Tubpbs » Sat Sep 10, 2016 5:16 am

CarefulBuilder14 wrote:When I had a fairly limited credit history and just a few cards, every dollar of my total credit limits felt important. I didn’t push hard for CLIs, but I’d have felt uneasy about closing a no-AF card, or moving a CL in such a way that I couldn’t save all of it.

When I got a SL of $7,500 on my CSP, I had a pretty clear realization that between CSP and my NPSL PRG, I had enough credit to meet my spending needs as a PIFer. Up until then it was a valid concern, since my wallet was Discover/Amex-heavy and limited acceptance was a concern. I did at least have a $4,500 Sallie Mae, but wasn’t thrilled about just earning 1% cash on major transactions. I didn't need to carry balances, so wasn't worried about utilization.

I’ve kept most of my cards open, but if/when I close more, I see preserving my existing CLs as a pretty low priority. I’m certainly not concerned about losing $500 or $2000 in credit due to some bank’s particular rules about moving CLs. Banks can take away CLs at any time, and it’s generally not hard for someone with a decent profile to get new “replacement” credit after an old card is closed…especially when a bank is pushing a card with a nice bonus.

How do others feel? Who's carefree about losing total CL, and who tries to hold on to every dollar?


I'd say even though I'd like to preserve every penny of my CLs, I probably wouldn't get too upset by losing some here or there either. As you said, you can always replace it. I would, however, prefer to keep whatI have.
Amex - BCP, Platinum, Business Gold
BoA - BankAmericard Cash Rewards
Chase - Freedom, CSP, RC, Ink Plus
Citi - DC, Prestige
Discover - It

takeshi
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Re: Still preserving TCL?

Postby takeshi » Tue Sep 13, 2016 7:39 am

It's about revolving utilization for me and I have some promo balances that I need to get rid of. Once they're gone I'll drop some accounts.

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PhillyPhoto
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Re: Still preserving TCL?

Postby PhillyPhoto » Tue Sep 13, 2016 8:06 am

My last round has brought me to a nice utilization ratio. I plan on keeping them all open until I can pay my BT down. I have 21 months at 0%, and now that most of the major initial expenses of buying a home are done, I can focus on paying everything down. I'll be in self-imposed "house poor" status for the next year and a half or so, but it will be worth it at the end of the day. Not too much in the future as far as cards go, so I'll be in the garden as well.
Main Cards:
Amex: Surpass
Chase: Hyatt

Sock drawer Cards:
Amex: HHonors, MB Plat
Chase: Amazon.com Rewards, Freedom
Citi: Macy's Amex, Simplicity, ThankYou
Citizens Bank: Cash Back Plus World
Discover: it
Elan: Bank Rewards
Synchrony: PayPal Extras

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CarefulBuilder14
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Re: Still preserving TCL?

Postby CarefulBuilder14 » Tue Sep 13, 2016 1:09 pm

takeshi wrote:It's about revolving utilization for me and I have some promo balances that I need to get rid of. Once they're gone I'll drop some accounts.

Well, carrying big promo balances can certainly justify keeping big CLs that would otherwise be unnecessary.

How many cards do you have at present? Which do you expect to close?
Keeping indefinitely: IHG, SchwabPlat, CSP, Discover, Freedom, ED, BCE, Hyatt
May close or PC: Prestige, Arrival, BrooksBros
AA Platinum converting into Costco

Might add: Proper business card, CSR, Ritz, Delta Gold, First Tech
Letting new accounts cool off since May

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Vattené
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Re: Still preserving TCL?

Postby Vattené » Thu Sep 15, 2016 4:03 pm

I don't worry too much about it now, in part because my credit profile has reached the point where I have CLs far above my spending needs, but primarily because I am now post-mortgage. It's nice to have high CLs and not worry at all about utilization, but even if I didn't I would have no need to micromanage utilization anyway. I don't anticipate any big credit needs in the near future. I do plan to apply for a car loan a few years down the road, but I'm honestly not too worried about it. If I could get my last one at the manufacturer's incentivized APR shortly after college with no history besides credit cards (and store account credit cards at that), then barring some disaster I should be fine.
-Vattené
FICO-8:
EX - 805 (12/16) | TU - 803 (12/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now



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