Card Consolidation Help Please

For just about anything you want to get off your chest about credit cards.
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nycplayboy78
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Card Consolidation Help Please

Postby nycplayboy78 » Fri Dec 18, 2015 5:27 am

Good Morning Everyone :)

I am in a bit of a pickle and I need some honest advice from yous guys please. I have way too many credit cards and only two of my cards have rewards and I use them as my daily drivers I will put them below:

Capital One Plat MC - Annual Fee ($79) - APR (12.9%) - CL (1K) - Date Opened (Dec 2005) - No Rewards - Balance ($0 12/18/2015)

Capital One Plat MC - Annual Fee ($0) - APR (11.9%) - CL (2K) - Date Opened (Aug 2007) - No Rewards - Balance ($0 12/18/2015)

Chase Slate Visa - Annual Fee ($0) - APR (28.24%) - CL (2K) - Date Opened (May 2007) - No Rewards - Balance ($0 12/18/2015)

Chase Sapphire Preferred Visa - Annual Fee ($0) - APR (15.99%) - CL (12K) - Date Opened (Oct 2015) - Ultimate Rewards - Balance ($0 12/18/2015)

First Premier Bank Plat MC - Annual Fee ($120) - APR (20.15%) - CL ($975) - Date Opened (May 2005) - No Rewards - Balance ($0 12/18/2015)

USAA Secured AMEX - Annual Fee ($35) - APR (9.9%) - CL (2.5K) - Date Opened (Feb 2014) - No Rewards - Balance ($0 12/18/2015)

AMEX Blue Cash EveryDay - Annual Fee ($0) - APR (21.99%) - CL (1K) - Date Opened (Oct 2015) - Membership Rewards - Balance ($0 12/18/2015) - Been AMEX Member since 1997

Wells Fargo Financial Plat Visa - Annual Fee ($0) - APR (20%) - CL (3.6K) - Date Opened (May 2008) - No Rewards - Balance ($0 12/18/2015)

FICO Score (700-736)

My dilemma is that a majority of these cards are over 10 years old and closing old active credit accounts will DAMAGE one's credit score BADLY...SIGH...SO guys what should I do I want cards that give me rewards...YES I KNOW I should cancel the First Premier Card because they are SCAM ARTISTS I know...I bank with USAA and I have my AMEX with them via a secured CD so I can get my money back plus interest. I tried to combine my Cap1 cards into something to give me rewards but Cap1 gives me the run around...SIGH...Can I combine my two Chase cards into one big card guys? Also that Wells Fargo card is a throwback to when Wells Fargo purchased Wachovia and I think I need to close them because when I go to my local WF bank they just look at me funny regarding that card....Reading the forums folks say get a Discover card so which one should I apply for? Guys I need some guidance I hate having ALL these cards in my wallet and NOT having any benefit from them. My daily drivers are my AMEX BCE and Chase Sapphire Preferred as well as my USAA Debit MC :)


CardAttack
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Re: Card Consolidation Help Please

Postby CardAttack » Fri Dec 18, 2015 6:53 am

I closed several old inactive accounts earlier this year. I was down to two cards, which I used as my daily drivers. I then applied, and received, eight new cards 6 months later. Closing the accounts did not decrease my score, in fact, it increased to the high 800s (even up to 850 on some models).

But then again, I PIF, have a thick file, never a late payment in 30 years, so all of that probably helped.

In my experience, closing accounts was not a big deal.
Amex BCP|Amex Hilton HHonors|AARP Visa|Chase Freedom |BofA BBR|BofA Cash Rewards | BofA Travel Rewards |Citi DC|Discover IT|US Bank Cash +|REI Visa

kdm31091
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Re: Card Consolidation Help Please

Postby kdm31091 » Fri Dec 18, 2015 6:59 am

The thing is that people tend to get confused due to misinformation about closing accounts and "age/history".

AAOA (average age of accounts), which only accounts for 15% of your score anyway, is dinged when you open new accounts. As they age, your AAOA ages, assuming you aren't opening new accounts every month. However, when you CLOSE accounts, your AAOA doesn't change until the accounts fall off some 10 years later. Some sites like creditkarma will lower their version of your AAOA when you close accounts, but your real, actual AAOA is unaffected by closing.

The only time closing accounts is going to hurt you in any significant way is if you are carrying balances and closing the accounts would significantly increase your utilization. If that isn't the case, there is little to no point in keeping accounts just to keep them, IMO. If they don't suit you, move on.

nycplayboy78
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Re: Card Consolidation Help Please

Postby nycplayboy78 » Fri Dec 18, 2015 7:01 am

CardAttack wrote:I closed several old inactive accounts earlier this year. I was down to two cards, which I used as my daily drivers. I then applied, and received, eight new cards 6 months later. Closing the accounts did not decrease my score, in fact, it increased to the high 800s (even up to 850 on some models).

But then again, I PIF, have a thick file, never a late payment in 30 years, so all of that probably helped.

In my experience, closing accounts was not a big deal.


Thank you CardAttack so should I just close ALL my accounts with the exception of my daily drivers (AMEX BCE and CSP)? For the USAA secured AMEX USAA don't convert secured cards to unsecured so I will get my money back plus interest and YES I do PIF every month on my accounts. Do you think I should get a Discover Card as well? In June 2016 I will ask Chase and AMEX for CLI on my accounts as that would be 6 months since opening those two accounts and PIF every month.

nycplayboy78
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Re: Card Consolidation Help Please

Postby nycplayboy78 » Fri Dec 18, 2015 7:03 am

kdm31091 wrote:The thing is that people tend to get confused due to misinformation about closing accounts and "age/history".

AAOA (average age of accounts), which only accounts for 15% of your score anyway, is dinged when you open new accounts. As they age, your AAOA ages, assuming you aren't opening new accounts every month. However, when you CLOSE accounts, your AAOA doesn't change until the accounts fall off some 10 years later. Some sites like creditkarma will lower their version of your AAOA when you close accounts, but your real, actual AAOA is unaffected by closing.

The only time closing accounts is going to hurt you in any significant way is if you are carrying balances and closing the accounts would significantly increase your utilization. If that isn't the case, there is little to no point in keeping accounts just to keep them, IMO. If they don't suit you, move on.


KMD thank you so much for that I was ALWAYS taught that closing accounts in good standing would utterly DESTROY your credit file/history....

kdm31091
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Re: Card Consolidation Help Please

Postby kdm31091 » Fri Dec 18, 2015 7:05 am

nycplayboy78 wrote:
kdm31091 wrote:The thing is that people tend to get confused due to misinformation about closing accounts and "age/history".

AAOA (average age of accounts), which only accounts for 15% of your score anyway, is dinged when you open new accounts. As they age, your AAOA ages, assuming you aren't opening new accounts every month. However, when you CLOSE accounts, your AAOA doesn't change until the accounts fall off some 10 years later. Some sites like creditkarma will lower their version of your AAOA when you close accounts, but your real, actual AAOA is unaffected by closing.

The only time closing accounts is going to hurt you in any significant way is if you are carrying balances and closing the accounts would significantly increase your utilization. If that isn't the case, there is little to no point in keeping accounts just to keep them, IMO. If they don't suit you, move on.


KMD thank you so much for that I was ALWAYS taught that closing accounts in good standing would utterly DESTROY your credit file/history....


The history and age will remain with you whether the account is open or closed. It falls off roughly 10 years from date of closure, but by then your newer accounts will have established and aged. And again, it's only 15% of your score anyway. Paying on time and keeping your utilization low are far more significant in terms of scoring.

Vermonster
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Re: Card Consolidation Help Please

Postby Vermonster » Fri Dec 18, 2015 7:14 am

Closing accounts will lower your score, but it takes a long time. Immediately, your utilization will take a hit which will have the biggest score impact. Your closed accounts will stay on your report for 10 years, they just won't be increasing in age like current accounts. So even if you cut down to 2 cards you will still have a "thick" file.

This is what I would do if I was in your shoes.

Capital One Plat MC - move the limit to the other Cap 1 then close.
Capital One Plat MC - either leave as is, or see about converting to a QS after adding the other limit.
Chase Slate Visa - keep, see if you can convert it to a Freedom so you can earn some extra URs
Chase Sapphire Preferred Visa - Keep, if you are using it enough to justify the AF.
First Premier Bank Plat MC - Close ASAP
USAA Secured AMEX - Could go either way. I would close if you get the cli on the real Amex.
AMEX Blue Cash EveryDay - Keep, see if you can get a SP 3x cli.
Wells Fargo Financial Plat Visa - Keep

At the end of all this you should end up with very similar total credit, but you will have cut down significantly on the ridiculous AFs. You'll also be down to 5-6 cards. I would reorganize, wait 6 months, then apply for cards if you think they will fit your needs.
Chase Freedom $9k~~Chase Sapphire Preferred $6.5k~~Amex Blue Cash Preferred $12.4k~~Citi Double Cash $4.7k

nycplayboy78
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Re: Card Consolidation Help Please

Postby nycplayboy78 » Fri Dec 18, 2015 7:29 am

Ok First Premier Bank credit card is now closed and boy those people are RUDE....Why do you want to close your account? I have had the account for 10 years and I have no benefit in having it now...Well closing accounts is bad and blah blah blah...Ok please close my account...Well I can give you $25 toward your monthly servicing fee...Ummm no ma'am please close my account...WELL FINE YOUR ACCOUNT IS CLOSED....Ok bye...

nycplayboy78
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Re: Card Consolidation Help Please

Postby nycplayboy78 » Fri Dec 18, 2015 7:36 am

Vermonster wrote:Closing accounts will lower your score, but it takes a long time. Immediately, your utilization will take a hit which will have the biggest score impact. Your closed accounts will stay on your report for 10 years, they just won't be increasing in age like current accounts. So even if you cut down to 2 cards you will still have a "thick" file.

This is what I would do if I was in your shoes.

Capital One Plat MC - move the limit to the other Cap 1 then close.
Capital One Plat MC - either leave as is, or see about converting to a QS after adding the other limit.
Chase Slate Visa - keep, see if you can convert it to a Freedom so you can earn some extra URs
Chase Sapphire Preferred Visa - Keep, if you are using it enough to justify the AF.
First Premier Bank Plat MC - Close ASAP
USAA Secured AMEX - Could go either way. I would close if you get the cli on the real Amex.
AMEX Blue Cash EveryDay - Keep, see if you can get a SP 3x cli.
Wells Fargo Financial Plat Visa - Keep

At the end of all this you should end up with very similar total credit, but you will have cut down significantly on the ridiculous AFs. You'll also be down to 5-6 cards. I would reorganize, wait 6 months, then apply for cards if you think they will fit your needs.


OMFG..Thank you so very much Vermonster I just closed my First Premier Bank card those crooks...I will go online and merge the two Capital One cards into one account and then convert that new card to a QS. How would I go about doing that? Should I go to my local Capital One branch and do this in person? For the Chase Slate card do I call Chase and ask for a Product Exchange to the Freedom card? For the AMEX BCE my plan was to wait until June 2016 and get a CLI but I will call them in Feb 2016 and ask for a 3x CLI and then again in June 2016 for another CLI will that work? As for the Wells Fargo Financial card is there anyway for me to convert that to a rewards earning card or should I simply as for a CLI from them?

rockyrock
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Re: Card Consolidation Help Please

Postby rockyrock » Fri Dec 18, 2015 9:14 am

nycplayboy78 wrote:
OMFG..Thank you so very much Vermonster I just closed my First Premier Bank card those crooks...I will go online and merge the two Capital One cards into one account and then convert that new card to a QS. How would I go about doing that? Should I go to my local Capital One branch and do this in person? For the Chase Slate card do I call Chase and ask for a Product Exchange to the Freedom card? For the AMEX BCE my plan was to wait until June 2016 and get a CLI but I will call them in Feb 2016 and ask for a 3x CLI and then again in June 2016 for another CLI will that work? As for the Wells Fargo Financial card is there anyway for me to convert that to a rewards earning card or should I simply as for a CLI from them?


The best thing is for you to call and be very friendly. Cap One may or may not work with you. I was a cardholder for >10 years and they refused to let me PC to a card with no AF so I ended up closing the account. Chase is more flexible but at the end of the day, what you want is irrelevant if it doesn't fit into their agenda--that goes for all issuers.

Citi was happy to let me PC my Exec/AAdvantage WEMC to a Double Cash. Chase was fine with converting my CSP to a Freedom and consolidating my Marriott into that. Amex wouldn't let me PC my SPG to anything but a Delta card so I closed it. USAA won't let me move my available credit from my Amex to MC so I keep it open just to help with my overall utilization. Already told you about CO...

Of course, YMMV.
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Chase: Freedom & UA Club USAA: Signature Visa & American Express
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