Thoughts on Closing Cards and Shifting Limits

For just about anything you want to get off your chest about credit cards.
9 posts
websteth
Centurion Member
Centurion Member
 
Posts: 279
Joined: Sun Dec 05, 2010 10:40 am
Location: Florida

Thoughts on Closing Cards and Shifting Limits

Postby websteth » Sat Feb 22, 2014 8:28 am

So here is a question for the masses in terms of closing cards. I've had several cards that I have decided to ditch lately just due to lake of use and really don't want that open credit line just sitting there. Several have been with banks that I have other cards and I have just shifted the credit line to the cards I do use. Here is my question, is having the larger limits but fewer cards better than having the fewer cards and the lower limits? Just curious. I know my score took a slight hit when I dropped the cards. Credit Karma's joke score had my score drop 25 points due to change in age of credit. That made me laugh. Discover FICO only dropped 5 points. Just curious on thoughts.
American Express: Platinum, Zync, Platinum Delta SkyMiles, Blue, Starwood Preferred Guest
Barclaycard US: iTunes Reward Visa, US Airways Premier World MasterCard
Chase: Sapphire Preferred Visa Signature, Freedom Visa
Citi Bank: Hilton HHonors Visa Signature, AAdvantage Platinum Select World Elite MasterCard
Bank of America Virgin Atlantic World Elite MasterCard
Discover: Discover it
Other:Macy's Star Rewards, Target REDCard


MemberSince99
Centurion Member
Centurion Member
 
Posts: 4913
Joined: Sun May 20, 2012 4:35 pm
Location: WI

Postby MemberSince99 » Sat Feb 22, 2014 8:53 am

Pros: Fewer cards to hassle with; larger limits bring larger limits
Cons: May lose some benefit a specific card offered (rewards, APR, etc).


I think the bottom line is, if you don't really want the card, ditch it. I for one don't follow the philosophy of "If it has no annual fee leave it open sitting around forever". when people tell me that I say ok if someone hacks the account and runs it up and I don't catch it while it's sitting in my sock drawer are you going to pay for what I'm liable for? No? Then please STFU.
Do whatever suits your situation and don't worry about what the "experts" with a 625 FICO and every Commenity Bank card with a 100 limit think you should do.

websteth
Centurion Member
Centurion Member
 
Posts: 279
Joined: Sun Dec 05, 2010 10:40 am
Location: Florida

Postby websteth » Sat Feb 22, 2014 8:57 am

Luckily these cards offered crud for rewards so I am not to worried about those lost and I never use the APR so I don't worry about that. I agree though that people with the 625 FICO with advice are to be taken with a grain of salt. This is coming for me with a score of lower 800s.

On a side note, I recently moved insurance companies and got a nice letter telling me that I didn't get the best rate due to the fact that I had applied for a credit card in the last year. I'm thinking they are connected with the crazies in the garden at MyFICO. :)
American Express: Platinum, Zync, Platinum Delta SkyMiles, Blue, Starwood Preferred Guest
Barclaycard US: iTunes Reward Visa, US Airways Premier World MasterCard
Chase: Sapphire Preferred Visa Signature, Freedom Visa
Citi Bank: Hilton HHonors Visa Signature, AAdvantage Platinum Select World Elite MasterCard
Bank of America Virgin Atlantic World Elite MasterCard
Discover: Discover it
Other:Macy's Star Rewards, Target REDCard

MemberSince99
Centurion Member
Centurion Member
 
Posts: 4913
Joined: Sun May 20, 2012 4:35 pm
Location: WI

Postby MemberSince99 » Sat Feb 22, 2014 9:05 am

Then I would agree with closing them. I've never hesitated to close what doesn't work for me anymore. A few times I've regretted it but for the most part, no. I've started to give a good amount of thought before I close anything. The last one I closed was that Duck card, not because I wanted to close it, but because I just can't believe how totally unprofessional and inept OCCU is based on what I read about them. That is one I just didn't want based on that. But I really had wanted to keep that one I just couldn't stomach doing it.


Are you serious about that insurance company? They are just beyond belief. I know when my credit was trashed that was when the insurance companies (greedy crooks that they are) figured out that due to the horrid economy, they could make money by saying people with bad credit were higher risk and so they threw another screw into all of us to boost their profits, so they pretty much doubled my rate just because of credit. But then when my credit cleaned up and was in the mid 700s, do you think they lowered my rate one penny as a result? NOPE. I had to leave that company and go elsewhere listening to them try to convince me I'm getting a hell of a bargain paying double what the new company offered to insure me for. God they are just flat out crooks even worse than Verizon and the cable companies in my opinion.

websteth
Centurion Member
Centurion Member
 
Posts: 279
Joined: Sun Dec 05, 2010 10:40 am
Location: Florida

Postby websteth » Sat Feb 22, 2014 9:09 am

Yep I didn't get the best rate with a credit score of over 800 due to applying for a new account. Got to love that. But, I did save over $400 a year by switching anyways so I can't complain. I still got a good deal.

Back to the original post about closing cards. I called one bank to close the card and when asked why or what would make me stay I said unless you can offer me a CHIP card and no transaction fees, I'm done. The person didn't know what I meant and said there was no need to have those features as why would I want to use my card over seas. I said just close the account and thanks.
American Express: Platinum, Zync, Platinum Delta SkyMiles, Blue, Starwood Preferred Guest
Barclaycard US: iTunes Reward Visa, US Airways Premier World MasterCard
Chase: Sapphire Preferred Visa Signature, Freedom Visa
Citi Bank: Hilton HHonors Visa Signature, AAdvantage Platinum Select World Elite MasterCard
Bank of America Virgin Atlantic World Elite MasterCard
Discover: Discover it
Other:Macy's Star Rewards, Target REDCard

thom02099
Centurion Member
Centurion Member
 
Posts: 476
Joined: Sat Apr 13, 2013 7:49 pm
Location: Colorado, USA

Postby thom02099 » Sat Feb 22, 2014 11:15 am

websteth wrote:Yep I didn't get the best rate with a credit score of over 800 due to applying for a new account. Got to love that. But, I did save over $400 a year by switching anyways so I can't complain. I still got a good deal.

Back to the original post about closing cards. [color="red"]I called one bank to close the card and when asked why or what would make me stay I said unless you can offer me a CHIP card and no transaction fees, I'm done. The person didn't know what I meant and said there was no need to have those features as why would I want to use my card over seas. I said just close the account and thanks[/color].


Good Grief!!!! THAT, alone would be enough reason to close the card!

No reason at all to keep a card open that's not going to be used regularly. The SD fanatics will disagree. I have an AMEX Clear that I'm leaving open but intend to close in June, simply because it's got a $10K limit on it and it's my ticket (e-ticket) to see Cher in concert in Denver ! ! In June after the concert, going after a BCP card, and then will transfer that $10K limit to that card.
Retired, and in the process of retiring cards!
EQ = 850 EX=849 TU = 850 as of 07/2017

MemberSince99
Centurion Member
Centurion Member
 
Posts: 4913
Joined: Sun May 20, 2012 4:35 pm
Location: WI

Postby MemberSince99 » Sat Feb 22, 2014 12:03 pm

thom02099 wrote:Good Grief!!!! THAT, alone would be enough reason to close the card!

No reason at all to keep a card open that's not going to be used regularly. The SD fanatics will disagree. I have an AMEX Clear that I'm leaving open but intend to close in June, simply because it's got a $10K limit on it and it's my ticket (e-ticket) to see Cher in concert in Denver ! ! In June after the concert, going after a BCP card, and then will transfer that $10K limit to that card.



That sounds like an excellent idea. No sense in letting the limit go to waste and the BCP will backdate anyway.

websteth
Centurion Member
Centurion Member
 
Posts: 279
Joined: Sun Dec 05, 2010 10:40 am
Location: Florida

Postby websteth » Sat Feb 22, 2014 1:21 pm

thom02099 wrote:Good Grief!!!! THAT, alone would be enough reason to close the card!


I know right? Talk about a clueless bank. Good luck with the BCP. Hope it works out.
American Express: Platinum, Zync, Platinum Delta SkyMiles, Blue, Starwood Preferred Guest
Barclaycard US: iTunes Reward Visa, US Airways Premier World MasterCard
Chase: Sapphire Preferred Visa Signature, Freedom Visa
Citi Bank: Hilton HHonors Visa Signature, AAdvantage Platinum Select World Elite MasterCard
Bank of America Virgin Atlantic World Elite MasterCard
Discover: Discover it
Other:Macy's Star Rewards, Target REDCard

PallasAthena
Gold Member
Gold Member
 
Posts: 44
Joined: Sun Oct 14, 2012 6:58 pm
Location: USA

Postby PallasAthena » Sun Feb 23, 2014 8:12 pm

I'm glad I ran into this thread. A few months ago, I closed two Capital One cards since they no longer served me and they did not want to raise my credit limit beyond $3500 on one and $1000 on the other. My FICO score took a 50 pt hit and I went down from 705 to 655. Yikes!!! Then, last month when I checked again, my FICO score was back up to 680. I am still mad that my score took a hit because I closed down two cards that I did not want open.
Dec '16 Fico: 800+
Ch 7 BK in '06, finally dropped off in '16
2 mortgages
paid off car
$0 CC debt (Disc, Citi, and WF Amex)



Return to “General Credit Card Talk”

Who is online

Users browsing this forum: No registered users and 3 guests