When to close secured credit card?

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When to close secured credit card?

Postby moe24 » Thu Aug 29, 2013 2:00 pm

Hello all, I was wandering if I should keep or close my secured credit card that I got from openskycc.com after only 4 months.

The reason why i'm wanting to close it is because I now have a discover it card and I have no use for the opensky credit card..how do I go about closing it down?

I read that its best to send the bank a certified letter because it won't look like they canceled my account.. does any one have a copy of the letter? Or should I just keep the card?

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Postby Obi-dan » Fri Aug 30, 2013 6:32 am

I do some financial counseling. I know a lot of the certified credit guys. They have always told me to tell people to keep secured cards open one year before closing. They say it looks better to other lenders.
Chase Sapphire Preferred
Marriott Rewards
Citi Hilton
Barclay Arrival
AMEX BCE (member since 95)
Chase Freedom
Discover It
Wells Fargo Platinum
Barclaycard (Apple)
Local Credit Union Visa (buy local!)

FICO Scores:
TU: 824 (Aug 2014)
Experian: 789 (Aug 2014)
Equifax: 807 (Aug 2014)

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Postby moe24 » Fri Aug 30, 2013 10:45 am

ok thanks ill just keep it open..its not like they're charging me a whole bunch of fees or anything

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Postby otter » Sun Sep 01, 2013 5:47 pm

To me, there are two reasons to have a secured card: (1) To help establish or reestablish credit (2) A secured card can be graduated to unsecured after a certain amount of time(usually a year).

I initially went with the secured route myself (BoA and Wells Fargo) and in retrospect, I realize I probably could have gone without it. I have given some thought to cancelling them, but I already paid the annual fee on both. The Wells Fargo is probably in higher danger of being cancelled simply because Wells Fargo's history of graduating cards is spotty while BoA almost always graduates with good payments in a year(plus the BoA card is a reward card.The problem I see with the opensky secured card is it NEVER graduates. Still, you've probably already paid the annual fee, so might as well keep it for a year and then move on to a better card.
In my Wallet:
  • Amex PRG NPSL[3-14, bd 91]
  • Sallie Mae MC $8000[1-14]
  • Chase Freedom $4700[1-14]
  • Discover It $2750[8-13]
  • BoA UCF Alumni Cash Rewards $5000 [3-15]
Sometimes in my Wallet:
  • GM BuyPower WEMC $5000[9-14]
  • Wells Fargo Propel 365 Amex $7000[4-14]
  • Barclaycard Arrival WEMC $7000[3-14]
  • BoA Better Balance $3000[2-15]
In my sockdrawer: Amex BCE $1000[10-13, bd 91], OCCU Duck $10000 [11-13], The Sportsman's Guide Visa $8000[8-14], Chase Slate $4000 [9-14]Delta Gold Amex $2000 [2-15 bd 91], Diners Club MC $20000 [10-14] Commerce Bank Visa $2000 [3-15] Citi Double Cash $1000 [3-15]
Total CL: $90450

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Postby flipnsf » Sun Sep 01, 2013 7:28 pm

i had 2 secured credit cards and after a year of paying on time and using it my scores went up enough so i called them to see if i can get my security back... i used credit unions for these so it was very easy to get my cash back and convert the cards to unsecured line and a decent credit limit increase.... one credit union actually gave me a 10k credit line with their platinum visa and 7.5 interest rate...

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Postby jprt80 » Mon Sep 02, 2013 9:28 pm

I say keep it open and convert when the time comes. Taking into account the average age of accounts for your score, it can help to have the second card open if you plan on picking up anymore later on. I started out w/ a B of A secured, converted it and closed it shortly after and regret it now.

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