Approved for 2 out of 3 - close subprime now or later?

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Approved for 2 out of 3 - close subprime now or later?

Postby Love2Cruise » Fri Feb 14, 2014 3:06 pm

Hey Everyone,
I'm new to these forums, found it yesterday and have been reading as much as I can. I am (slowly) repairing my credit. CK says my TU score is 687. I have 2 store cards opened '10 and '11. I have a CreditOne that is under a year old. Is it okay to close that in terms of the average age of account thing as well as utilization? Of the 3 cards I have it's limit is in the middle. However Chase matched the CreditOne limit so basically it would be an even trade, no?
Also Discover went crazy and gave me 4K so my utilization will still be low thanks to that limit.

Lastly Barclay denied me but I'm actually not bummed because before the results came in I was wondering how I would juggle all 3. Like I said, I am repairing credit but having a real CC is new for me. So all this is very overwhelming.

Currently awaiting the arrival of the Freedom and IT card.
Thank you for your help!

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Postby Drudai » Sat Feb 15, 2014 8:29 pm

If you are carrying a balance, it is not recommended to close a card until you've paid it off. If you're not carrying a balance, then utilization won't matter much. I closed my CrapOne card (my first cc) after I got my Freedom/Discover cards because I no longer used it (paid off, no rewards) and didn't want to pay the AF. I also wanted my deposit back. I took a small hit to my credit score, but it bounced back easily because of how short my AAoA was from new cards. In the long run, I'm glad I did it sooner than later.

Side note: if you are carrying balance on the store cards, I *highly* recommend transferring their balances to your It or Freedom while in the intro. 0% as store cards are evil interest building machines. I still have my 2nd oldest card (Sears $2K) only because of the high limit plus I use it to get great deals on clothes/electronics with promotions. Unless there's an AF on those store cards, just sock drawer them and don't use them except to keep them alive (or deals, like me).
Chase Freedom: $800
Chase Slate: $500
Discover It: $2000
Sears: $2000
US Bank: $500
AMEX BCE: $2000

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Postby takeshi » Sat Feb 15, 2014 11:11 pm

Closing will not affect AAoA. AAoA is affected 10 years down the road when the account falls off. Utilization, on the other hand, is immediately impacted. You can do the math to determine the change in utilization.

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Postby rockyrock » Sun Feb 16, 2014 8:52 am

Agree with both of the last two posts.

Store cards are ONLY good if you PIF every month or take advantage of 0% promotions and pay on time. You can really score some good deals or discounts with them as well.

At this point I would close any card you don't plan to use and focus on the ones you do. You have a good combo with the Freedom and IT.

Maybe in a few months look into a Amex BCP to round out your wallet.
Sapphire Reserve: travel & dining
Blue Cash Preferred: groceries & gas
Freedom: 5% cats
Double Cash: everything else

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Postby Love2Cruise » Sun Feb 16, 2014 8:15 pm

Thanks for the replies.
I am 1 payment away from being PIF on 2 cards. The other card I rarely carry a balance. I dont have any use for a balance transfer right now, which is unfortunate because I would've loved to take advantage of the 0%apr that both new cards are offering.

One of those cards is the creditone which will be paid up next payment. Luckily I didnt pay a join fee and since it's under one year I will miss paying the annual fee as well.

If I were to hold on to the store cards, but not use them, how long would they allow that before canceling my cards? I dont want to close them JUST IN CASE there are some good deals to be had for having their card.

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