Should I close my card?

Discuss the Visa & MasterCard payment networks as well as cards that operate through them.
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Postby flan » Sun Dec 01, 2013 4:45 pm

MemberSince99 wrote:I can't find any proof to back that claim, only what I saw in my score which as I said could be other factors, though heck if I know what.

FICO do not use dollar values in their mainstream scoring algorithms. Period. Their goal is to be income neutral, so that someone with $20 in annual income can have as good (or bad) a score as someone with $20,000,000. (They fail at that, but for other reasons; for the range of income covered by the middle class, they don't do badly.)

That's not to say that some lenders may not consider limits in figuring what they think of you, but they're reasonably good at discarding outliers. I wouldn't close an account, just because it's got a low limit. If there's a fee, sure, but if it doesn't cost you anything, sock drawer it, get on with your life.

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Postby MemberSince99 » Sun Dec 01, 2013 7:36 pm

I don't believe in the sock drawer, long term. It's an accident waiting to happen. You only get 90 days to dispute if there is fraud, and since you aren't using/monitoring the card you might not even know. Then you have to kind of babysit a card you aren't even using and if you aren't going to use it again, why? Just to have it? People by nature have this hoarder mentality, which combined with an addiction to applying is what causes those signatures you see on the FICO board with 25 credit cards in them. No one can realistically use that many.

I for one just want a handful I can and will use on a regular basis - if I find I'm not going to use a card again, I close it and eliminate my potential liability for fraud and having to babysit it. I'm just not a believer in hoarding what I never plan to use again. I find it easier to get on with my life not having to worry about it.

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