- Centurion Member
- Posts: 538
- Joined: Fri Mar 09, 2012 9:29 am
- Location: San Francisco, CA
Money card wrote:Please explain why you wouldn't recommend him/her to close out a charge card that can only be used in it's store. It's not like gas where this person fills up every week. It's a jewelry store how often does anybody need to buy jewelry? If this person shopped in Zales the same amount of time they shop in JCP this person would be broke.
If he/she needs to buy jewelry on occasion they can use their credit card.
Unless this person works for Zales, or is super rich and can afford to shop there every week or has no other cards and is trying to build up credit, they need to close out this card. A Zales charge card isn't the best card to have on their credit report.
If they were going to apply for a Bank of America credit card and somebody looked at the report and saw a Zales card still open but only uses it once a year, Crashem do you think this looks good?
they need to close it.
It is 2012, the computers run everything. If you read my original quote reply, I explained how it was helping his FICO score. One, it is helping his AAoA calculations and his credit length (ie oldest account). Obviously if he has a ton of cards, it won't hurt that much. 2nd, the credit limit on the card helps his utilization calculations (ie. what percentage of his credit he is using).
As for your comment, the fact is that underwriting is mostly done by computers these days. Manual review really only occurs during the mortgage process, a little during auto loan process, and during reconsideration. I highly doubt underwriter cares if there is some zale card for when the applicant got jewelry. It might not help but it won't hurt. My recommendation if anything is to see if they do soft inquiry for CLIs and to get more credit if so. The fact is at some point they will cancel the card from lack of use. Might as well keep it on their credit report as long as possible. In terms of perceived "prime" vs "sub prime" lenders, the fact is FICO scores don't take any of that into account. A 15k credit card from Orchard Bank vs a 15k credit card from Chase/Citibank/whoever, is treated the same. The real difference in lenders is simply that "prime" lenders have higher credit standards and will tend to give better cards in terms of rewards and credit lines. That's it.
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