Author Topic: When do you close a credit line?  (Read 5634 times)

Murse

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When do you close a credit line?
« on: April 25, 2016, 04:33:14 PM »
I have just been approved for a 3rd credit card so I will have a total of 3.

Credit card one is maybe 18 months old and has a limit of 1000$ but no rewards

Second line I just got increased to 2000$ already collected the 100$ reward but I still get 1.5% on everything

I just got approved for another card with a 9000$ limit with 150$ reward after spending 500$ in 3 months and 1.5% on everything.

My question is when do I start closing lines? I don't want to have a bunch of credit cards I won't use but I don't want to hurt my score over the long run.

Bracken_Joy

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Re: When do you close a credit line?
« Reply #1 on: April 25, 2016, 04:39:57 PM »
Why do you not want multiple cards open? Do they have fees? Otherwise, the only downside is having to monitor for fraud, which is easy if you check something like Mint regularly. But you want the age of credit history and the utilization that comes with multiple lines of credit.

Murse

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Re: When do you close a credit line?
« Reply #2 on: April 25, 2016, 07:08:56 PM »
Why do you not want multiple cards open? Do they have fees? Otherwise, the only downside is having to monitor for fraud, which is easy if you check something like Mint regularly. But you want the age of credit history and the utilization that comes with multiple lines of credit.

I just would prefer to not keep track of many cards. Would it harm my credit by a lot to close cards that I get just for the bonuses?

Bracken_Joy

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Re: When do you close a credit line?
« Reply #3 on: April 25, 2016, 09:25:05 PM »
I guess the next question then is, how much does it matter? Credit score only matters if you are going to use it, like a home or auto loan. If you're not likely to use your credit for anything major in the next year or two, the small hits from closing CCs is obviously a less big deal.

My understand is that the impact closing the cards will have depends on things like what % credit utilization that will increase you to, how many accounts you will still have, and how it affects your average age of credit. Aka- my understanding is that there is no easy answer!

forummm

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Re: When do you close a credit line?
« Reply #4 on: April 27, 2016, 08:22:16 AM »
I probably have 10 cards, and have had some of them for almost 20 years. One has a limit of 1/25 of another one. I'm keeping them as long as I can to keep my average credit age long.

Murse

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Re: When do you close a credit line?
« Reply #5 on: April 27, 2016, 08:25:56 AM »
I probably have 10 cards, and have had some of them for almost 20 years. One has a limit of 1/25 of another one. I'm keeping them as long as I can to keep my average credit age long.

Okay, then my next question is where do you keep all of these cards and how do you keep them safe?

HipGnosis

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Re: When do you close a credit line?
« Reply #6 on: April 27, 2016, 10:25:18 AM »
I probably have 10 cards, and have had some of them for almost 20 years. One has a limit of 1/25 of another one. I'm keeping them as long as I can to keep my average credit age long.

Okay, then my next question is where do you keep all of these cards and how do you keep them safe?
I have 7 or 8 cards. None of them have a fee.  I have a spreadsheet with their limits, interest rate, etc.
I keep three in my wallet. I note on them with a sharpie where to use them, which is where they get (the best) rewards. 
The rest are in a desk drawer - with my credit card account papers, boxes of checks and old check book registers.
I have a magazine subscription on two of them and Angies List on another - so they get used once a year.  Which reminds me to cancel Angies List as I haven't used it in years.
I'm refinancing my mortgage and the bank officer said I have the best credit he's seen in years.  I was concerned because I haven't made a loan payment other than mortgage in many years.
To keep them safe...  I don't let them go to seedy bars w/o me.