Volcanon wrote:Even if they are low limit crappy cards, why would you cancel them? Is there a downside to just throwing these in a drawer?
(1) The card may have an annual fee... why pay an annual fee for a card you don't use?
(2) Some internal scoring models used by some creditors do take into account CL's. In much the same way that a 10k card may help you get more 10k cards, a bunch of open toy limit cards may tell prospective lenders that you haven't been adequately tested at higher limits.
(3) Out of sight often means out of mind. If a card is in your sockdrawer, you might not be checking the account online for fraudulent activity and by the time you discover it- it could be too late.
(4) If you're unhappy with a company's service/offerings/etc, why do business with them? Why should that be any different with credit cards? I'm not going to worry about a 5-10 point drop in my FICO if I'm not applying for a mortgage or car loan soon. I do those things which really impact my FICO (keep util low/never miss a payment). The inertia of FICO is to go up over time... you just have to make sure you do the big things right...
In my Wallet:
Sometimes in my Wallet:
- Amex PRG NPSL[3-14, bd 91]
- Sallie Mae MC $8000[1-14]
- Chase Freedom $4700[1-14]
- Discover It $2750[8-13]
- BoA UCF Alumni Cash Rewards $5000 [3-15]
- GM BuyPower WEMC $5000[9-14]
- Wells Fargo Propel 365 Amex $7000[4-14]
- Barclaycard Arrival WEMC $7000[3-14]
- BoA Better Balance $3000[2-15]
In my sockdrawer: Amex BCE $1000[10-13, bd 91], OCCU Duck $10000 [11-13], The Sportsman's Guide Visa $8000[8-14], Chase Slate $4000 [9-14]Delta Gold Amex $2000 [2-15 bd 91], Diners Club MC $20000 [10-14] Commerce Bank Visa $2000 [3-15] Citi Double Cash $1000 [3-15]
Total CL: $90450