Should I close unused credit cards?

For just about anything you want to get off your chest about credit cards.
11 posts
karisuma
Green Member
Green Member
 
Posts: 3
Joined: Tue Aug 02, 2011 4:10 pm
Location: USA

Should I close unused credit cards?

Postby karisuma » Thu Dec 15, 2011 8:46 am

Hi there. I currently have 4 credit cards that I'm planning to no longer use going forward. Thing is, I've only had them for 5 months.

What's the best way to handle them for the best impact on my credit score? Should I close them now, or keep them forever but unused, or keep them for a while and then getting rid of them? Thank you.


DoingHomework
Centurion Member
Centurion Member
 
Posts: 707
Joined: Tue Sep 22, 2009 1:15 pm
Location: Arizona

Postby DoingHomework » Thu Dec 15, 2011 1:44 pm

You might want to keep them open for at least a year or so, assuming you have no annual fees. Close any that have fees if you do not use them.

Most cards will be closed by the issuer after 3-5 years of not being used.

FutureBillionaire
Centurion Member
Centurion Member
 
Posts: 1589
Joined: Sun Jun 19, 2011 2:37 pm
Location: Down South

Postby FutureBillionaire » Thu Dec 15, 2011 2:27 pm

If you plan on applying for new ones later, you can close them now. If you can get some use, keep them open so you can grow your account history.
Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape

gizmo
 
Posts: 1
Joined: Mon Mar 12, 2012 11:18 pm
Location: Madison, WI

Accounts Unknowingly Opened...Close Or Not?

Postby gizmo » Tue Mar 13, 2012 12:32 am

I'm sitting between 725 and 750 currently across the three major bureaus. Miscellaneous info is as follows:

  • 10% Revolving Utilization
  • 97% Installment Utilization
  • 7 Revolving Accounts (Credit Cards):

  1. Amex, 8 months old, $6000 limit, $0 balance
  2. Barclay's, 29 months old, $5000 limit, $0 balance
  3. Chase Freedom, 32 months old, $5000 limit, varying balance
  4. Chase Sapphire Preferred, new account, $12500 limit, $0 balance
  5. Unsecured via credit union, 16 months old, $5000 limit, $0 balance
  6. J Crew, 19 months old, $750 limit, $0 balance
  7. Wells Fargo, 6 months old, $10000 limit, $0 balance
At what point should I be closing out accounts? I would like to keep the Chase cards as they have, despite general consensus, always treated me well. The Wells Fargo was a concern as it was opened after some misleading conversation with a retailer about hard and soft pulls, and next thing I know it, they're giving me a card in the mail. The Unsecured would be nice to keep open as well as it provides fast access to extra cash should the need arise.

I would like to close Wells Fargo, J Crew, Barclay's, and possibly Amex...simply because I am OCD and constantly checking accounts I have open in case there is something awry.

Is my credit score going to tank if I start closing accounts left and right? I don't want my overall utilization to skyrocket either, but I typically carry less than $4,000 in revolving debt with monthly payments in full.

User avatar
PlatinumAMEX94
Centurion Member
Centurion Member
 
Posts: 321
Joined: Mon Jan 02, 2012 1:21 am
Location: Denver

Postby PlatinumAMEX94 » Tue Mar 13, 2012 1:06 pm

Go get some medication for your OCD, sign up with Lifelock and put security freezes on your credit reports. You have good credit, keep it that way. Yes, if you start closing accounts your score will dramatically drop. All of your cards are prime cards and one day you will be thankful you have the credit established. Don't be OCD about your score.
American Express Platinum Personal, Member since 94
Chase United Explorer - Visa Signature
Chase Sapphire Preferred
American Express Business Simply Cash

American Express Costco Business, American Express Platinum Business
Bank of America 10k, Capital One Venture World MasterCard 7.5k, Fidelity Visa Signature 10k
Citibank ThankYou Premier World MasterCard - Card Member since 91, 25k
Discover 10k Member since 91, Wells Fargo Personal & Business Visa Signature
USAA World MasterCard 12k, Chase Slate Exclusives Visa 5k

Lifelock member, USAA credit monitoring, Security Freezes E/E/TU, 800+

Moneytalks
Centurion Member
Centurion Member
 
Posts: 438
Joined: Sat Feb 04, 2012 8:22 pm
Location: United States

Postby Moneytalks » Wed Mar 14, 2012 9:53 am

I know the card itself expires, but if you let the line of credit expire, and the creditor closes the account from their end, does that affect your score????
Wallet: Amex BCE & Chase Freedom. (Credit Card dieting since 2014)

User avatar
PlatinumAMEX94
Centurion Member
Centurion Member
 
Posts: 321
Joined: Mon Jan 02, 2012 1:21 am
Location: Denver

Postby PlatinumAMEX94 » Wed Mar 14, 2012 4:50 pm

ANYTIME there is a decrease in your available credit it hurts your score, regardless of who closes it. When it comes to credit decisions it can go either way. One analyst may view lots of available credit as a negative, as you could potentially go max out your cards tomorrow. Another creditor may view high credit lines as increasing responsibility. But it is usually ill advised to just close accounts, or to do because you are mad at the stupid customer service rep you got on the phone. If a creditor closes a store card for inactivity you probably should just let them. Those cards usually have small limits anyway. My Kohls card has a $500 limit, so if they closed it, $500 is a very minimal amount to lose of available credit.
American Express Platinum Personal, Member since 94
Chase United Explorer - Visa Signature
Chase Sapphire Preferred
American Express Business Simply Cash

American Express Costco Business, American Express Platinum Business
Bank of America 10k, Capital One Venture World MasterCard 7.5k, Fidelity Visa Signature 10k
Citibank ThankYou Premier World MasterCard - Card Member since 91, 25k
Discover 10k Member since 91, Wells Fargo Personal & Business Visa Signature
USAA World MasterCard 12k, Chase Slate Exclusives Visa 5k

Lifelock member, USAA credit monitoring, Security Freezes E/E/TU, 800+

Moneytalks
Centurion Member
Centurion Member
 
Posts: 438
Joined: Sat Feb 04, 2012 8:22 pm
Location: United States

Postby Moneytalks » Wed Mar 14, 2012 8:30 pm

That makes sense, but is it worse or the same if I were to close the line of credit? I'm still new to the whole credit world (hence why I'm on this forum) so pardon me if my question is vague or "stupid". Thanks for the response!!
Wallet: Amex BCE & Chase Freedom. (Credit Card dieting since 2014)

User avatar
PlatinumAMEX94
Centurion Member
Centurion Member
 
Posts: 321
Joined: Mon Jan 02, 2012 1:21 am
Location: Denver

Postby PlatinumAMEX94 » Thu Mar 15, 2012 1:26 am

It is the same. If you close a line of credit or the bank does, either way your utilization score changes, and depending on how old the account is, it will change the average account age, which also can change the score.

Many times if an account is closed by a consumer it is b/c that person got mad about something (terms, rate, etc) and closed it. When an account is closed by the credit granter it may be due to late, nonpayment, or other factors that appear negative. As a general rule of thumb, the ending of a relationship, for whatever reason is not usually a good one.
American Express Platinum Personal, Member since 94
Chase United Explorer - Visa Signature
Chase Sapphire Preferred
American Express Business Simply Cash

American Express Costco Business, American Express Platinum Business
Bank of America 10k, Capital One Venture World MasterCard 7.5k, Fidelity Visa Signature 10k
Citibank ThankYou Premier World MasterCard - Card Member since 91, 25k
Discover 10k Member since 91, Wells Fargo Personal & Business Visa Signature
USAA World MasterCard 12k, Chase Slate Exclusives Visa 5k

Lifelock member, USAA credit monitoring, Security Freezes E/E/TU, 800+

Money card
Centurion Member
Centurion Member
 
Posts: 1361
Joined: Tue Jun 28, 2011 10:13 pm
Location: New York state

Postby Money card » Sun Mar 25, 2012 3:55 pm

karisuma wrote:Hi there. I currently have 4 credit cards that I'm planning to no longer use going forward. Thing is, I've only had them for 5 months.

What's the best way to handle them for the best impact on my credit score? Should I close them now, or keep them forever but unused, or keep them for a while and then getting rid of them? Thank you.


Which cards are they? Are they bank card/financial or are they store cards? If store are they charge cards like Macy's or are they store credit cards like Macys American Express, Nordstroms visa, Brooks Brothers Mastercard?

If they're a variety of the cards which 4 are you looking to get rid of?



Return to “General Credit Card Talk”

Who is online

Users browsing this forum: EdwinCoink and 2 guests