Phasing out high interest and low balance cards

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
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Joined: Thu Oct 04, 2012 4:03 pm
Location: Pittsburgh

Phasing out high interest and low balance cards

Postby JD86 » Mon Oct 08, 2012 7:45 pm

hey everybody, first post here. I've been lurking in a sense getting a vibe and reading reviews on cards and what everybody is doing with their credit.

So to make a long story short, I have been rebuilding my credit since I lost my job four years ago and when that happened I put everything on my BP Chase card since it had the biggest limit and needed to pay for car insurance, car payment, rolled three credit cards into it and over the course of three months I went from a $300 balance to a $4,998 balance with a $5000 limit. A year after I got a new job making 40% less, i started using my other cards again. Thus destroying my credit from a 805 to a 608. I in the past year rebuilt my score to a 675 and paid down $9,800 in CC debt to just $5,003 (as of today)

So my question is how do I go about canceling my high interest cards that have low balances, such as the Capital One cards that I swear everybody has in the wallet.

I am looking to apply for the AMEX Green in the spring once I pay down some balances and also looking at some other CC that I could have high limits to balance out closing my older accounts, and I know that closing old accounts is a piece of your overall score so I would want to close out after opening the new accounts?

Some help would be awesome!
I would like to get Cap One out of my wallet all together but my Cap One Visa is my oldest account...

Current Card Line up (Limits)
Cap one Visa $750 Limit
Cap One Master $750 Limit
Chase BP $5,000
Bestbuy $1,000
Guitar Center $5,000
Firestone card $1,000
Discover $2,500

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Centurion Member
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Joined: Wed Aug 01, 2012 12:04 am
Location: Hawaii

Postby jlam572 » Sat Oct 13, 2012 12:33 pm

Good luck to you. A lot of us got in the same situation when the economy took a off credit cards just to survive. My cap one is also my oldest card, ill probably keep it forever because there is no annual fee. If yours also has no fee, i highly recommend paying it all off, cutting up the card and let the account remain dormant for a year...cap one will probably give you a CLI (thats what happened to me). In my case my cap one limit went from 200 (student card i got at 18) to 1000 platinum (still didnt use it) to 3000...used it when I was unemployed after college and couldnt find a job in my field.

I was approved for green when i was in college making between 10-15k per year. My score was in the high 600s at the time. Once youre at a reasonable utilization i dont see why they wouldnt accept you...

As for closing accounts. I learned on this forum that even if you close your account, it remains on your report for another 10 years? correct me if im wrong someone.

A few things I have learned from this forum... get rid of junk toy cards(low limits) if they wont upgrade you/CLI you, avoid certain store cards, avoid annual fee cards if no rewards to counterbalance the costs, maintain good utilization. It all depends on you...a lot of people on this forum love chase for example...they wouldnt upgrade me or give me a CLI so i dropped them happily last week. Some people hate amex or have bad experiences with them...but I love them, and have since day 1...they treated me the way I wanted to be treated even when i was only charging 1k a month to the card. Hope this helps and wasnt too long
American Express Platinum
Chase Sapphire Preferred
Hawaiian Airlines BOH MC
Capital One Visa Platinum
Citi Diamond Preferred MC

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