Quick Question about closing low CLI cards

Discuss the Visa & MasterCard payment networks as well as cards that operate through them.
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Bama87
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Postby Bama87 » Wed Apr 30, 2014 9:17 am

Troublemaker wrote:I don't get it. Are you happy that it's a signature card or that Capital One graced you with a card? IMV, a signature card isn't without it's drawbacks (highest balance reported as CL etc.)


Just surprised it is a Signature Card and nice that offers some better perks over a reg Visa. Not like I will ever use most of them, but it nice knowing they are there. Also, surprising because this is my first "real" Credit Card outside of my local CU.

I did call and talk with a Capital One rep and she sounded like she knew what she was talking about. She said they do report the CL they gave me as my CL and not a NPSL or my highest spend as my CL.


Volcanon
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Postby Volcanon » Wed May 07, 2014 5:22 pm

Even if they are low limit crappy cards, why would you cancel them? Is there a downside to just throwing these in a drawer?

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otter
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Postby otter » Wed May 07, 2014 9:19 pm

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:
  • 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]
Sometimes in my Wallet:
  • 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

Volcanon
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Postby Volcanon » Thu May 08, 2014 5:25 am

otter wrote:(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...


(2) Was the answer I was wondering about -and applies to me. I have 2 toy limits and one 5k one. Going to have to look at my AAoA and plan for a better card application.



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