Caneling a couple

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Michael_S
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Caneling a couple

Postby Michael_S » Sat Mar 26, 2011 10:10 am

Hey
I have now 7 credit cards in my name. They are:

Home Depot
Amex Green
Amex Costco
Discover More
Bank Of America Signature Visa
Best Buy Reward Zone Master Card
Orchard Bank Master Card

I was thinking about closing the last two cards because A) I don't feel like i need that many lines of credit open. My fiance says to keep them open but you don't have to use them. B) the Orchard bank card just hasn't grown for me. I only have a $500 limit on that card and i have had it for 4 years and have tried to get increases but only like $50 at a time
The reward Zone card i have had for the same amount of time and it is at a $1200 limit but still feel the need to close it since i have what i cal better cards like the Discover and the AMEX. Any suggestions? Or should i close one of the AMEX cards as well?
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AmanteDecor
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Postby AmanteDecor » Sat Mar 26, 2011 1:17 pm

I don't see any reason to close one or two of your cards unless you're getting an annual fee, and I believe the only one of your cards that makes you pay annually is your Amex Green Card. If you're unhappy with what you're paying for that, you could try to switch it with the Amex Zync Card, which includes most of the same benefits and has a low annual fee of $25. My advice would be to keep the cards you have open--it keeps your AAoA higher, and if you're not using them there is really no downside.

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Michael_S
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Postby Michael_S » Sun Mar 27, 2011 9:55 am

What is AAoA?

AmanteDecor
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Postby AmanteDecor » Sun Mar 27, 2011 1:42 pm

Michael_S wrote:What is AAoA?

AAoA means average age of accounts; for example, if you have a total of two cards, one owned for a year and one owned for two years, your AAoA would be one and a half years. Credit card companies like seeing a lengthy credit history with multiple cards, so it's really in your benefit to keep them around as long as you can manage. For further reading on the benefits of keeping around your old cards, check out this post by the CreditCardGuru to find out why keeping your unused cards open actually helps your credit score.

agenda_zero
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Postby agenda_zero » Mon Apr 04, 2011 2:22 am

Having 7 cards is a good number IMO but if you feel the need to give one the axe, cancel the Orchard Bank. That is a subprime issuer and I cannot imagine that would be attractive on your credit file if eyeballs were manually reviewing it.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Mon Apr 11, 2011 3:17 pm

I agree with you 100% AmanteDecor. There's no reason to cancel a card and affect the AAoA in the future if no annual fee is being charged. There are a number of cards I keep open that I don't actively use for this very reason.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

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