Close or Sock Drawer?

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6 posts
ajacks108
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Close or Sock Drawer?

Postby ajacks108 » Tue Apr 08, 2014 7:39 pm

When do you close a credit card and when do you sock drawer it. Right now my criteria are.
Annual Fee, # of cards you have, Purpose?
My real debate is, I have 7 cards and I am not sure I would be able to keep track of many more which is why I want to upgrade a few or maybe sock drawer a few.

Sleepys card i got for financing furniture. Will close asap

Banana Republic Card i got for the $10 back. But now that I think about it I don't go clothes shopping often enough. However sock drawering it might not be a bad idea for those days i do go to Banana.

Chase Slate. I only have this because it was automatically converted from my college card to slate. Might replace this with PNC Cashbuilder with 1.75% cash back on all purchases. However it is my oldest card which is why I was thinking of sock drawering it.

Chase Freedom - will keep

Chase United Explorer - miles don't expire i have about 70k. 2 free lounge passes free checked bag no international fees priority boarding and check in. Might think about changing to a general travel card such as Barclays World Prem, or maybe another airline with better rewards or FF program (any recomendations? was thinking us airways or AA). Maybe something with a companion ticket. Or just close and Keep Amex Prem Gold. No sock drawer option because of annual fee

Amex Prem Gold - All the amex perks. However i'm slowly starting to find other cards have similar perks for less of an AF. Might change to blue cash preferred 6% on groceries and 3% on gas two of my biggest expenses and i think i can backdate it?

Target Store Card - keep cause i go to target for household stuff.

Cards I'm thinking of picking up besides previously mentioned. Chase Saphire Preferred, heard nothing but good things. And 2% on dining out. Or Barclays with 2x on everything.

Any thoughts?
[size=80]Amex Premier Gold
Chase Freedom - CL $8,000
Chase United Mileage Explorer card - CL $6,900
Banana Republic - CL $4000
Chase Slate - CL $3,000
Target - CL $2000
Ann Taylor Loft - CL $1000[/size]


rockyrock
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Postby rockyrock » Tue Apr 08, 2014 9:58 pm

If it has no AF I would keep it to keep you utilization strong. Just make sure you use it once or twice a year so it doesn't get closed grantor.

If there is an AF and you don't use it, close it ASAP! Rarely is there a reason to keep these cards open.
American Express (2005): Premier Rewards Gold & Blue Cash Preferred
Chase: Freedom & UA Club USAA: Signature Visa & American Express
Discover it Bank of Hawaii Hawaiian Airlines WEMC Synchrony Sam's MC
Navy FCU Platinum Visa Citi Double Cash & AT&T Access MC

MemberSince99
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Postby MemberSince99 » Wed Apr 09, 2014 6:44 am

My own personal philosophy is if I no longer want a card I close it and it's gone. I don't keep them around forever just because someone on another forum told me "oh it doesn't hurt anything to leave that thing sitting around". Maybe not most of the time, but someone can steal it either online or physically and if you don't catch it YOU are on the hook so tell me about how that doesn't hurt anything if it happens to you. I don't believe in leaving liabilities open just to leave them open in the delusion nothing can go wrong. (Or worse perpetuate that delusion). Since you don't want to babysit them if you don't want them close them but think about it and be sure that's what you really want. Then if you don't need or want it, dump it.

takeshi
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Postby takeshi » Wed Apr 09, 2014 9:12 am

ajacks108 wrote:When do you close a credit card

When I don't have a purpose for a card.

ajacks108 wrote:and when do you sock drawer it.

When the only purpose for the card is to keep utilization low and/or emergency use only (typically low APR cards with little to no rewards).

ajacks108 wrote:Might think about changing to a general travel card such as Barclays World Prem, or maybe another airline with better rewards or FF program (any recomendations? was thinking us airways or AA).

You'd have to give us a lot more info for recommendations. Why did you narrow it down to those two? What are you specifically looking for in a replacement?

ajacks108 wrote:Chase Slate. I only have this because it was automatically converted from my college card to slate. Might replace this with PNC Cashbuilder with 1.75% cash back on all purchases. However it is my oldest card which is why I was thinking of sock drawering it.

Closed accounts in good standing will continue to report for 10 years so you don't need to keep it open just because it's your oldest card unless you want to squeeze out every possible month from your AAoA. Consider transferring its limit to your other Chase cards that are useful to you. If you didn't already have a Freedom you could have PC'ed it and retained its age, history, etc.

linuxmachine
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Postby linuxmachine » Wed Apr 09, 2014 1:14 pm

Store cards, like your BR card will close on its own. I had one which closed about 18 months after inactivity.

For cards you want to stow to preserve age of credit, FWIW even closed cards don't drop off your report for 10 years. As long as you maintain a healthy stable of cards, you don't need to worry so much. However, if you still want to keep it, you should try to use it every now and then. Chase has been known to close inactive card accounts without notice

ajacks108
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Postby ajacks108 » Wed Apr 09, 2014 4:14 pm

takeshi wrote:Closed accounts in good standing will continue to report for 10 years so you don't need to keep it open just because it's your oldest card unless you want to squeeze out every possible month from your AAoA. Consider transferring its limit to your other Chase cards that are useful to you. If you didn't already have a Freedom you could have PC'ed it and retained its age, history, etc.


Totally did not know that! Good to know and about the store cards as well! May close out my slate and simply add the CL to Freedom.

I want to upgrade my
The reason why I chose US Airways Dividends is because
United Mileage Explorer I have 70k miles and thats the biggest reason for keeping it the difference between the two is the FF connected with it and I heard AA and US airways are merging and that AA has the best FF program. But with AA's recent "upgrade" is it still better then Stars Alliance? Also I would have 1 less lounge pass with US Air but two free companion tickets for 117 after t&f (helps with a ticket for the GF) and its less $10 in AF but that is w/e.

The reason why I chose Barclays Arrival is because of the 2x on earnings. I don't frequently fly all that often but i want to start doing so. Regardless I don't spend enough on tickets which is the only category the other two cards earn double miles on. Barclays i would get 2x miles on every purchase. However i'm not sure if by going the barclays route how do I redeem my miles? I know i can use orbitz or priceline etc and that helps. But if the conversion is high then it would not be worth it.

Those are the two best I came across. I just want a card that can help lower costs and provide some VIP perks such as priority boarding for me and my GF who fly domestically maybe once a year and internationally maybe once every two-three years.

Ironically my friends come to me to ask me about good cards. And i come here to bounce ideas. Always thankful for the advice!
[size=80]Amex Premier Gold

Chase Freedom - CL $8,000

Chase United Mileage Explorer card - CL $6,900

Banana Republic - CL $4000

Chase Slate - CL $3,000

Target - CL $2000

Ann Taylor Loft - CL $1000[/size]



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