Should i narrow down my current cards?

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jcerillo70
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Should i narrow down my current cards?

Postby jcerillo70 » Tue Dec 01, 2015 4:38 pm

Hi guys,

So i have 4 credit cards & a fingerhut account now. I, trying to rebuild my credit.

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

I have been thinking about narrowing down to 2 or 3 cards - Does it make sense for me to pay one or two off and close until im back in the 700's score.

Amy insight is greatly appreciated.


kdm31091
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Re: Should i narrow down my current cards?

Postby kdm31091 » Tue Dec 01, 2015 10:30 pm

jcerillo70 wrote:Hi guys,

So i have 4 credit cards & a fingerhut account now. I, trying to rebuild my credit.

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

I have been thinking about narrowing down to 2 or 3 cards - Does it make sense for me to pay one or two off and close until im back in the 700's score.

Amy insight is greatly appreciated.


For scoring purposes generally 3 cards are considered "enough" to build from. If I were you I'd probably ditch the Fingerhut and Nordstrom. Fingerhut is just overpriced, and you cannot do much with a $500 limit. Nor can you do much with $300 at nordstrom and unless you shop there a lot, it's probably not worth having the card. Cut it loose.

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CarefulBuilder14
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Re: Should i narrow down my current cards?

Postby CarefulBuilder14 » Tue Dec 01, 2015 10:57 pm

jcerillo70 wrote:Hi guys,

So i have 4 credit cards & a fingerhut account now. I, trying to rebuild my credit.

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

I have been thinking about narrowing down to 2 or 3 cards - Does it make sense for me to pay one or two off and close until im back in the 700's score.

Amy insight is greatly appreciated.

I wouldn't close anything immediately. When you're rebuilding, you need as much good information to report as you can, to weigh against the bad marks.

Maybe close the BofA secured card before the next annual fee is due. When would that be?

If Fingerhut or Nordstrom's go inactive from disuse, so be it. I'd still try to squeeze as much account history as you can from them, though, and let the banks close the store cards before you do.
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Letting new accounts cool off since May
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JonE
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Re: Should i narrow down my current cards?

Postby JonE » Wed Dec 02, 2015 3:16 am

I just recently closed a fingerhut account that was reporting at $250. With their overpriced merchandise (and an Amazon account more than 3 times that!) it's not necessary anymore, and I got tired of those doorstop catalogs they send every other month.

Keep the major bank cards, maybe you can transfer them to something better in the future. Ultimately I think I want to wind up with 3 or 4 cards. 3 major bank cards with rewards, and one useful store card (probably Amazon since I'm a prime member) sounds about right.
Current Cards: Chase Freedom, Discover IT
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jcerillo70
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Re: Should i narrow down my current cards?

Postby jcerillo70 » Wed Dec 02, 2015 5:52 am

Thanks for the quick replies! yes Finger-hut is definitely overpriced lol but i saw they reported to all 3 bureaus, in my head it was good for the short term build, but they are definitely going in 3 months,

Now the way it was explained to me was its not about your combined high credit limit (5 cards equaling 5000 limit). But rather, its better to have a couple cards that offer high limits.

But i do like the idea of having that extra history like your talking about.

Right now I'm in a credit restoration program, and they deleted a couple of the older stuff that was hurting me, and there is a bunch of other stuff that will come off in the next 5 months. So im just trying to pre plan for the best attack strategy.

Thanks guys!

Vermonster
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Re: Should i narrow down my current cards?

Postby Vermonster » Wed Dec 02, 2015 7:00 am

I wouldn't close anything, but I would pay as many to $0 as I could, then toss them in a sock drawer. I would keep using the Discover as much as possible and the BoA as backup. Those are two good cards IMO. I would try to add to that BoA limit though. With a lot of good history you could see about having the BoA secured converted to an unsecured, but I believe you need at least $500 limit on the card.
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takeshi
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Re: Should i narrow down my current cards?

Postby takeshi » Wed Dec 02, 2015 7:31 am

You don't have to hoard credit to build and can close accounts, if desired. As stated above, general suggestion is at least 2-3 cards for scoring purposes. If you're above that then it's up to you to determine what you keep open or close beyond that. Keep in mind that while AAoA is not immediately impacted by account closure, revolving utilization is. You can easily calculate revolving utilization before and after to help you decide.

If you choose to sock drawer then you have to actively monitor those sock drawered cards. If you're going to SD and forget them then close them.

kdm31091
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Re: Should i narrow down my current cards?

Postby kdm31091 » Wed Dec 02, 2015 10:31 am

The "close vs SD" debate can go on forever, but if there is no AF, there is no pressing reason to rush and close the cards. However, I'd suggest eventually the fingerhut and/or nordstrom are easy targets to close. I have done the SD thing in the past for unwanted cards and for me, it didn't give me much satisfaction. The account still exists, has to be monitored, and despite not carrying it around, you haven't really pared down anything, as you still "have" the card. But that's totally an individual perspective.

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CarefulBuilder14
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Re: Should i narrow down my current cards?

Postby CarefulBuilder14 » Wed Dec 02, 2015 11:20 am

kdm31091 wrote:The "close vs SD" debate can go on forever, but if there is no AF, there is no pressing reason to rush and close the cards. However, I'd suggest eventually the fingerhut and/or nordstrom are easy targets to close. I have done the SD thing in the past for unwanted cards and for me, it didn't give me much satisfaction. The account still exists, has to be monitored, and despite not carrying it around, you haven't really pared down anything, as you still "have" the card. But that's totally an individual perspective.

That's part of what I love about my lineup. :) All my cards have activity alerts enabled and/or are a click away from cards I use frequently.

If I had 11 cards accessed with 11 different online accounts and no alerts, I probably would close several.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when

kdm31091
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Re: Should i narrow down my current cards?

Postby kdm31091 » Wed Dec 02, 2015 11:25 am

CarefulBuilder14 wrote:
kdm31091 wrote:The "close vs SD" debate can go on forever, but if there is no AF, there is no pressing reason to rush and close the cards. However, I'd suggest eventually the fingerhut and/or nordstrom are easy targets to close. I have done the SD thing in the past for unwanted cards and for me, it didn't give me much satisfaction. The account still exists, has to be monitored, and despite not carrying it around, you haven't really pared down anything, as you still "have" the card. But that's totally an individual perspective.

That's part of what I love about my lineup. :) All my cards have activity alerts enabled and/or are a click away from cards I use frequently.

If I had 11 cards accessed with 11 different online accounts and no alerts, I probably would close several.


Right, and it becomes a less big deal if you have several cards with one issuer and want to SD one or two of them. Since you have to log on to the online management anyway, no big deal to check out the SD'd accounts. But when they are on sites you otherwise don't need to go to, it can be more of a pain. I have my QS SD'd and the only reason I haven't closed it is reluctance to give up a 10k limit. But I never use it save for netflix, they won't lower the APR, and I don't see myself using it again. Will likely close it sooner or later, but for now, I'm fine just checking on it once in awhile. It still doesn't have the satisfaction of just washing your hands of it and closing it though



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