Closing unwanted cards

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attrapereves
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Closing unwanted cards

Postby attrapereves » Tue Jul 08, 2014 3:16 pm

I've always wondered why people recommend keeping unwanted cards opened. If I have no use for a card, I close it out. I can understand the credit benefits. But having four good cards is no different than having 8 lower limit cards.

To me, it's actually a security risk to have too many opened cards as monitoring them for fraud can become a time consuming process.

I just closed my starter Cap One card from 2011 that I haven't used in months. I've got 8 cards total, but would like to get that number down to 6 eventually.


MemberSince99
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Postby MemberSince99 » Tue Jul 08, 2014 7:00 pm

Yeah I wonder the same thing. Frankly if you are not going to use it and don't want it, roll the limit into another card or PC it, or failing that just close it. Why leave an open tradeline that can be compromised leaving you on the hook if you don't catch it.


Those FICO people who are adamant about NEVER EVER close a card can leave them hanging forever if they want to as long as they are willing to take the risk, but I don't do it.


And ultimately if you don't use it eventually all lenders will close them out anyway.

attrapereves
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Postby attrapereves » Tue Jul 08, 2014 7:17 pm

The Cap One account I just closed (rarely used) out had a fraudulent charge a few months back. Luckily I check my accounts often, otherwise I would have missed it. Having a drawer full of cards seems like more of a risk.

I might close out another card or two by the end of this year, and hopefully get a CLI from some of my other cards.

popamode72
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Postby popamode72 » Tue Jul 08, 2014 7:43 pm

Once I get a CLI on one of my main cards, I'm probably gonna close two low limit cards I hardly ever use. I just have them open now for utilization purposes. I think the most common thing I've read over at MyFico is that if the card doesn't have an annual fee, then leave it open or something like that and that even if you close it, the tradeline will still be on your credit report for years to come. Not sure if that advice is one size fits all.
Macy's TLs (21k), Lowes (17k), CSP (10k), Sam's Club (10k), Nordstrom (5k), AARP (4.2k), Freedom (3k), Discover (1.5k), Quicksilver (2k), BoA (3k), Barclaycard Arrival (2.5k), Amazon Store (6k), Paypal (4.9k), Sam's Club MC (3.6k), Walmart MC (1.2k)

attrapereves
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Postby attrapereves » Tue Jul 08, 2014 8:37 pm

I just merged my Chase Freedom and Amazon visa cards. Chase was able to take the credit limit from my Amazon card and put it towards my freedom card. I don't buy enough from Amazon to justify having the card.

MemberSince99
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Postby MemberSince99 » Tue Jul 08, 2014 8:50 pm

I don't personally care if the card has an annual fee or not - if I'm not going to use it, I see no sense in leaving it open and risking the account costing me in the way of fraud that I don't catch. Not only could that cost me money but also my good credit. No thanks.


That's if I'm sure it has no place in my wallet, and if that's true, then it's gone. I disagree with their advice of leave it open because "it doesn't hurt anything". Tell that to the guy whose account got hacked and he was left to pay for it.


And yes closing an account in good standing will cause it to report for 10 years that is true.

AMEXPlatino86
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Postby AMEXPlatino86 » Wed Jul 09, 2014 12:01 am

+1 MemberSince99.

J/K I just recently shut down my WF Platinum. They helped me rebuild my credit to what it was but eventually I started falling out with the bank itself with it's nickel and diming of everything. But after shutting down everything I couldn't let go of my CC. It could had a guilt thing or it was the fact that it was my oldest card but I had to come to the fact that I no longer wanted to be tied to the bank in anyway (as there are very few locations in NYC), I hadn't received a CLI since 2012, and the fact that I just put my gym membership on it just to keep it open.

When I called to cancel, they really didn't want to do anything to make me keep it open but at the end of the phone call I felt like 50 lbs had been lifted off my shoulder because I didn't have to worry about anything anymore. So my take is AF or not if you doesn't use it to it's fullest or at all, get rid of it.
Wells Fargo Platinum 2.100 (5/2011-cld 7/12/14)
AmEx Platinum (6/12)
Barclays Apple (6/12)
AMEX Gold Delta (5/13)
Marriott Rewards (7/14)

My credit score :cool:
EQ: unknown
EX: 776
TU: 774

takeshi
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Postby takeshi » Wed Jul 09, 2014 9:37 am

attrapereves wrote:I've always wondered why people recommend keeping unwanted cards opened.

People have varying preferences and goals. If you read recommendations you have to consider the source and its relevance to you. In the end it's what works for you that really matters.

I have a couple of cards that I generally don't use but are kept for utilization padding. However, I've also closed a number of other cards that were of no use to me.

attrapereves wrote:To me, it's actually a security risk to have too many opened cards as monitoring them for fraud can become a time consuming process.

Risk is increased by leaving accounts open but I've never had problems monitoring all my accounts. Again, YMMV so do what works for you.

popamode72 wrote:I think the most common thing I've read over at MyFico is that if the card doesn't have an annual fee, then leave it open or something like that and that even if you close it, the tradeline will still be on your credit report for years to come. Not sure if that advice is one size fits all.

It's not one-size-fits-all. AF isn't the only deciding factor for everyone. Each needs to make the decision using the individual's own priorities versus relying on broad generalizations.

attrapereves
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Postby attrapereves » Wed Jul 09, 2014 3:15 pm

I can understand having 10 cards, but more than 20 seems a bit ridiculous. I used to have an Amazon and Target card, but can get the same percentage cash back by buying gift cards at the grocery store using my AMEX.

Ikarus
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Postby Ikarus » Wed Jul 09, 2014 8:38 pm

attrapereves wrote:The Cap One account I just closed (rarely used) out had a fraudulent charge a few months back. Luckily I check my accounts often, otherwise I would have missed it. Having a drawer full of cards seems like more of a risk.

I might close out another card or two by the end of this year, and hopefully get a CLI from some of my other cards.


This is deja vu. I just closed out a Cap One card for the same reason. Someone got a hold of my info and started small trickle charges: $1.50 here, $0.49 there. I think it was a setup to see if the account was still active before charging larger items.

I had a dispute with a vendor last year that went in my favor. Perhaps they did something? Or perhaps it was the Hooters waitress in LA a few summers ago (the only time I had the card physically leave my hand)?

Either way, it was a low CL card with no perks, only headaches, so I finally ditched it and felt great about doing so.



popamode72 wrote:Once I get a CLI on one of my main cards, I'm probably gonna close two low limit cards I hardly ever use. I just have them open now for utilization purposes. I think the most common thing I've read over at MyFico is that if the card doesn't have an annual fee, then leave it open or something like that and that even if you close it, the tradeline will still be on your credit report for years to come. Not sure if that advice is one size fits all.


That's my plan, as well. I would love to get rid of my old Merrick/Hooters card, but the CL is too large. I keep it to pad utilization. It does give me a FAKO score, as well, so at least I get something out of the deal.

But considering I get true FICO from Discover and TransUnion scores and credit tracker from my CapOne Quicksilver, the Merrick is basically a dead card I'd love to drop. Once I get a CLI from AMEX BCE, I'll drop it in a heartbeat.
Merrick Bank (Hooters) 4100
Cap One Quicksilver 4800
Discover it 2500
Citi Forward 8000
Chase Freedom 1000
AMEX Blue Cash Everyday 5500
Citi Dividend 7000
Cap One Visa Platinum 750 (CLOSED)



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