Credit card limits and card cancellation

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4 posts
Ares
 
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Credit card limits and card cancellation

Postby Ares » Thu Jul 17, 2014 10:53 pm

My issue is this:

I opened a visa credit card from Wells Fargo in june of 2012 with my mom as cosigner. The credit limit is $1300 on the Wells Fargo card.

I have since then opened three other credit cards, one with Best Buy last year October 2013, Barclaycard in August of 2013 and another with my federal credit union on February of 2013. My limit on the Best Buy Citi bank card is $2000, my limit on my Barclaycard is $3500 and my limit on my credit union visa is $3500.

I do not want 4 credit cards anymore. The reason I opened one with Barclaycard and Best Buy was to buy stuff for school (laptop, printer, router, office, etc). Since then I zeroed out both the best buy and Barclaycard's 10 months before the 18 months no interest was over. My credit union offered me a low interest rate if I opened a card with them, so I did, have not regretted it. I do not use my Wells Fargo visa card as I do my credit union visa.

My question is, will it be bad to close my Wells Fargo card, my first card, with a lower credit limit versus any of the other three cards? I used to have a Best Buy credit card before in 2012, but closed it, i reapplied for another one. I closed the first best buy card because it had a low credit limit of $400 and the card company didn't want to raise the limit. My credit score right now is great, just checked earlier this month.
Some advice would be appreciated, thanks.


MemberSince99
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Postby MemberSince99 » Fri Jul 18, 2014 3:43 pm

Nope it won't matter it will report for years to come assuming it's reporting now. You have other cards if you really don't need or want it feel free to close. Even if there was a small hit to your score, which I doubt but you never know, it will grow in time if you keep doing things right. Don't sweat it.

takeshi
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Postby takeshi » Sat Jul 19, 2014 8:49 pm

Ares wrote:My question is, will it be bad to close my Wells Fargo card, my first card, with a lower credit limit versus any of the other three cards?

With card closures utilization is immediately impacted and AAoA is not until the account falls off your reports.

1,300 of 10,300 seems like it wouldn't have much impact but you'd have to do the math to confirm..

MemberSince99
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Postby MemberSince99 » Sun Jul 20, 2014 8:06 am

takeshi wrote:With card closures utilization is immediately impacted and AAoA is not until the account falls off your reports.

1,300 of 10,300 seems like it wouldn't have much impact but you'd have to do the math to confirm..




True, but if you do it like me and never carry a balance, it's always the same 0 no matter how many cards you have or you close. I know not everyone does that though.



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