Should i narrow down my current cards?

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16 posts
pac4toon
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Re: Should i narrow down my current cards?

Postby pac4toon » Wed Dec 02, 2015 3:21 pm

Hi. If these were my cards, I would keep the first 3 cards (BankAmericard, CapitalOne & Discover) and cancel the rest. Any of those cards have an AF? If the AF is high, then I'd probably cancel that card too. Just my opinion. :)
In my wallet:
AmEx PRG/ BoH Hawaiian Airlines WEMC / Chase Freedom /

In my sock drawer:
AmEx HHonors & BCE


Tubpbs
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Re: Should i narrow down my current cards?

Postby Tubpbs » Wed Dec 02, 2015 4:03 pm

If your express purpose right now is rebuilding your credit then I personally would not close any of those cards. The more on time monthly payments you have the better off you are for now. The more accounts in good standing you have, the better. Every month that each of your accounts age, the better.

This is just my position. Even if there is an annual fee on a card, it's probably worth it. People give so much grief to issuers about having annual fees on secured cards. I don't understand why. Maybe the bank shouldn't do it and doesn't need to do it to make money on the profile or product, but improving your credit is worth way more than $39 a year. It's crazy. Just a car loan at 2.99% vs 10.99% for almost any new car is going to save you more than the average person's lifetime in annual fees.

You need to do what is best for yourself obviously, but if rebuilding is your goal and these are you only accounts, I see no benefit in closing any of them any time soon.

What other info can you give us about your credit profile?
Amex - BCP, Platinum, Business Gold
BoA - BankAmericard Cash Rewards
Chase - Freedom, CSP, RC, Ink Plus
Citi - DC, Prestige
Discover - It

JonE
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Re: Should i narrow down my current cards?

Postby JonE » Thu Dec 03, 2015 4:24 am

Yeah, for the most part, keep what you have until you can get better cards. I still have Walmart and Care Credit from when I was rebuilding, and reacquired Amazon. All accounts are in good standing, and I went from high 590's last year to the highest score (EQ) about 637. Still fair territory, but improving. By this time next year, possibly 700s. Keep/Use what you have, make all your payments on time, PIF where possible.
Current Cards: Chase Freedom, Discover IT
Future: TBD

jcerillo70
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Re: Should i narrow down my current cards?

Postby jcerillo70 » Thu Dec 03, 2015 4:39 am

Tubpbs wrote:If your express purpose right now is rebuilding your credit then I personally would not close any of those cards. The more on time monthly payments you have the better off you are for now. The more accounts in good standing you have, the better. Every month that each of your accounts age, the better.

This is just my position. Even if there is an annual fee on a card, it's probably worth it. People give so much grief to issuers about having annual fees on secured cards. I don't understand why. Maybe the bank shouldn't do it and doesn't need to do it to make money on the profile or product, but improving your credit is worth way more than $39 a year. It's crazy. Just a car loan at 2.99% vs 10.99% for almost any new car is going to save you more than the average person's lifetime in annual fees.

You need to do what is best for yourself obviously, but if rebuilding is your goal and these are you only accounts, I see no benefit in closing any of them any time soon.

What other info can you give us about your credit profile?


On my credit i have 4 perfect paid auto loans which are closed now and an open BMW lease which is also paid perfect,

and 4 perfect paid cards that i finally recieved in February this year. and student loan which is paid good.

I went years without having credit cards oobviously because i couldnt get them.

right now :
Experian - 608

Equifax - 581

TransUnion - 629

i have 7 older accounts credit card & medical accounts that went into collections with 2 judgements in those from a while ago that i couldn't afford to pay. but they keep getting renewed somehow on credit. they are coming up on the 7 year mark so the creditors are doing everything they can to makr them stay on.

I was refereed to CRE credit restoration, and they got 2 of those derog accounts knocked off my transunion already in a month, so we got that going.

Current cards are

So i have 4 credit cards & a fingerhut account as of now.

1.BankAmericard Platinum Plus Visa - (Secured) $300 limit
2. Capital One Platinum - $500 Limit
3.Discover it - $200 Limit (secured)
4. Nordstrom store card - $300 limit
5. Fingerhut account- $500 account limit

i do have high balances right now, but in 2 months i will have them paid down to under 25% of their limits.

I eventually want to narrow down to a real Discover IT, Nordstrom or apple store card, and a BOA visa since i bank & invest with them or something else with good cash rewards(I see alot of people here have chase freedom). I dont need miles, since i dont fly so lol
Last edited by jcerillo70 on Thu Dec 03, 2015 10:30 am, edited 1 time in total.

Tubpbs
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Re: Should i narrow down my current cards?

Postby Tubpbs » Thu Dec 03, 2015 10:28 am

As long as there are no annual fees then I would leave them open until you replace them with better cards down the road.
Amex - BCP, Platinum, Business Gold
BoA - BankAmericard Cash Rewards
Chase - Freedom, CSP, RC, Ink Plus
Citi - DC, Prestige
Discover - It

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Vattené
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Re: Should i narrow down my current cards?

Postby Vattené » Thu Dec 03, 2015 11:04 am

You may not need to hear this, but I think it is something that generally bears repeating: don't give credit card rewards a second thought unless you are in the habit of paying everything in full. Rewards are great, but the cards they come with have higher interest rates. If you carry balances (and therefore pay interest) with any frequency, you will lose more than you gain from rewards.

Again, I don't know if this applies to you particularly, but there are plenty of people out there that don't realize credit cards can provide a lot of value if and only if they are essentially treated as debit cards. I think those are good goals.



That said, my two cents would be keep everything that doesn't cost you anything and evaluate the rest for whether keeping is worth the cost. You sound like you're in a position where your score is about to jump after these baddies fall off. If there's no annual fee and you have good credit, it may not be worth it to you to monitor an account for fraud; that just varies based on people's preferences. Until then, if I were you I'd want to hold on to everything that had a positive impact on my credit. When it comes to something with a fee, it should depend on your anticipated credit needs. If you think you'll need to finance a car soon, you need every credit score point you can get. If you can afford to wait, your credit will rebound with good behavior and I would personally want to cut it loose.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
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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