Close card and open up new one or keep.

For just about anything you want to get off your chest about credit cards.
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MemberSince99
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Postby MemberSince99 » Thu Jan 02, 2014 8:57 pm

Once you hit 760 though, it doesn't do any practical good at all.


I'm not noticing any subprime cards with annual fees in your signature - CSP has an annual fee, but if you have that I assume you know what you are doing and it's far from subprime. So I think it's fair to say that unless you didn't follow your own advice and closed a lousy card right after you refied, you didn't get the better score due to keeping a crappy card around. Your advice may be valid, but if people are in that bad of shape that they need to worry about a subprime clunker with a toy limit and fees, maybe they should reconsider a major action at this time in the first place.


JoDa
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Postby JoDa » Thu Jan 02, 2014 10:46 pm

I followed my advice when I was young and had limited credit, in order to get where I am today. I kept every card that didn't have an annual fee to both keep the history and bloat the lines. In fact, that $4K BOA is the first CC I ever had, though I have asked for increases and gotten them as I've gone from college student to well-employed professional (the original line was only $500), and I have no intention of ever canceling that line since it's well-aged and always current with no fee. Yes, I ditched a Cap One with an annual fee and small line once I got established since they would neither waive the fee nor increase my line, but, for someone who has only one card that they can get out of paying a fee on, there's no harm in keeping it active, as long as they're not actually paying a fee. Also, I just got the CSP 2 days ago...as I've moved up the corporate ladder, I've moved up the credit ladder, through demonstrated responsibility. And, yes, I'm paying the fee for the rewards that will far exceed the fee.

As for the score, the 760 cut-off is exactly where I bordered when I did the refi. Had I shut down a fee-free line, it might have cost me those few points, ESPECIALLY if I was younger with a thinner file. When you're discussing a nearly $200K mortgage, half a point or so over a few credit score points means A LOT. If you can grab those few extra points with a longer credit history or larger lines WITHOUT a fee, WHY NOT? Sure, if OP couldn't get out of the fee, I'd say go ahead and cancel it. But because it seems like he can, why NOT let it ride?
CSP $19K
BOA $4K
UMP $11.5K
Target Visa $1.5K

mathman314
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Postby mathman314 » Fri Jan 03, 2014 12:38 am

As stated, I can get out of the fee; however, it's one of those things that I have to remember to do once a year before (or a few days after) it hits the statement. I'm sort of a lazy person if you can't already tell :D

Is there a way I can try to negotiate a lower APR? Kind of bugged with the 29.9%
Cards:
1FBUSA: 5.75k
Discover IT (for students): 4.6k
Chase Freedom (signature): 5k
Target REDcard: 1.5k
AmEx BlueCash Everyday: 5.5k

FICOs:
TU - 785 (December 2015)

MemberSince99
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Postby MemberSince99 » Fri Jan 03, 2014 6:44 am

And it's also a line to have to babysit.


I say everyone should do whatever they want to do with their credit. Telling people to leave open a line of credit they have no interest in is pointless. If you are up to the work of managing it, just to hoard subprime cards, then keep it open and hoard them. More power to you. I closed mine as soon as I could get better and moved on and I've never regretted it a bit. And believe me Cap One was only too happy to close them.

takeshi
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Postby takeshi » Fri Jan 03, 2014 10:05 am

mathman314 wrote:Well, what would you do if it were up to you?

You can't just poll people for what you should do as credit, income, spend, goals, priorities, etc all vary. FWIW, I'd echo MemberSince99 if your signature is correct. If you're looking to replace your card with the highest limit it would probably be good to have another prime card in its place.


mathman314 wrote:What % does AAoA play into the score if at all? And UTL?

If I do close it, would it be wise to close it when nothing is charged to my other cards so my UTL would stay at 0%?

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

You don't want 0% utilization. You want more than 0 but we can't say where your ideal is. Probably somewhere between 0 and 10.

mathman314 wrote:EDIT: And I've always wondered...what exactly are the benefits for student cards?

I think it's just easier approval criteria.

mathman314 wrote:Is there a way I can try to negotiate a lower APR? Kind of bugged with the 29.9%

All depends on the creditor. I've tried several times with USAA and they would never do so. Recently they dropped the APR on each of my cards by 1% without my asking.With some creditors you just have to close the existing account and apply when you're in better shape for a lower APR. I have no experience with 1FBUSA. It doesn't hurt to call and ask.

JoDa wrote:Sure, if OP couldn't get out of the fee, I'd say go ahead and cancel it. But because it seems like he can, why NOT let it ride?

Because it's a matter that the OP needs to decide upon using his own decision making and not another person's. There are those that keep every possible tradeline open and those that do not. There isn't just one approach to managing one's credit. I'm also one that closed cards that didn't suit me any more regardless of whether or not they were no fee and I have made significant improvements to my credit despite closing those tradelines.

The OP has mentioned twice (granted the second time was after your post that I'm replying to) that he does not want to deal with getting the AF waived. Each person has to decide using their own priorities.

trainypooh
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Postby trainypooh » Fri Jan 03, 2014 10:35 am

Congrats on the Chase Freedom! That's a great card. I would cancel the 1FBUSA card. I've heard lots of bad things about them (even though I have yet to have any real issues). My APR is also 29.9% and my annual fee is $35. I plan on canceling this card very soon. My 1FBUSA card is my oldest and I've had it since 2006 I think. Like Member said, do what you feel is right for you, it won't be the end of the world. Especially since you don't have a long credit history anyway.
My Wallet:
Discover IT - $9500
AMEX BCE - $9000
Chase Freedom - $5000
Capital One Quicksilver - $2700

Future Cards:
Chase CSP

JoDa
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Postby JoDa » Sat Jan 04, 2014 1:55 am

Sure, everyone can use their judgement, but there's also some value in considering where you are and what might happen over the medium-term. Tak doesn't provide any info on his/her situation, but Member has extensive credit lines covering 14+ years just on his sig, while OP is just starting out by his own admission, statement, and sig, and has limited credit lines. Even if he has to "babysit" the line by calling *once a year* to get out of the annual fee, the extra credit could prove valuable both in purchasing power and credit points in, say, 5 years if he wants to buy or furnish a home. Listen to me, don't, it's your choice, I'm just saying, if I had a $2K+ credit line with no fee with a simple yearly phone call IN COLLEGE, especially with the value of experience in getting mortgages and other major loans as an adult, I'd keep it until I got established. OF COURSE I'd ditch a card that wasn't doing anything for me NOW. As I said in another thread, I'm ditching a 6-year-old UMP shortly. But I also have 2 car loans, 2 mortgages, 2 student loans, and 3 other credit cards, all in good standing, on my profile and don't foresee making SUPER MAJOR purchases (new primary residence) for at least 2 more years, plenty of time for already good and established credit to recover from a little dent. 5 years ago, I'd be hanging onto that UMP, even if it meant a fee I wasn't keen on paying (of course, back then, I was keen on paying the fee because I was flying 100K BIS miles on United every year, so the card was serious gravy...perfect example of circumstances changing).
CSP $19K
BOA $4K
UMP $11.5K
Target Visa $1.5K

MemberSince99
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Postby MemberSince99 » Sat Jan 04, 2014 8:07 am

Well I could be wrong but basically you're agreeing with us it sounds like :D

JoDa
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Postby JoDa » Sat Jan 04, 2014 11:01 pm

Not really. If I were OP, young and just getting set up and faced with making a yearly phone call to keep a fee-free line for a few years while I got established, I'd keep it and do it. *Once* I got established, I'd cancel it in a hot minute. The "best practice" for an established adult with multiple and robust credit lines is not the same as for a young person just getting set up. I'm just young enough to remember clearly fighting for every credit point I could muster as I made my move into "responsible adult" territory. Like I said, 6 years ago, I was clinging to every line I could get my hands on (not so much for the spending power as the credit points), nowadays I "meh" letting something go because I know everything else on my file outweighs that. But I also shaded that with saying I'm never giving up that 15+ year aged BOA without a fee. Even if they resolutely refused to give me any more increases, that card establishes my credit from the tender age of 18 WITHOUT A FEE. All I have to do is log in once a month, confirm that only my internet bill has been charged on it, and go on with my life. The Target isn't all that different, except I keep it for the discount, since I buy household basics there (ain't nothing like 5% off your TP and laundry detergent from a store where it's already cheap).
CSP $19K
BOA $4K
UMP $11.5K
Target Visa $1.5K



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