This board's own Matty (whose 18th birthday arrives next week!) used to ask for advice -- about once every other week -- regarding which cards to close. If I was in a good mood (the "good" doc), then I would happily chime in. If I was in a bad mood ("Mr. Hyde"), I would post some sardonic response that would lose friends and influence nobody. Today, hat in hand, I am asking the board for the kind of forgiveness only accorded hypocrites and imbeciles. Alas, I hope I'm the former, but I'm probably the latter. Anyway, Creditnet friends (when I need something, suddenly everybody's my friend -- even lbrown59, cough, cough -- but I digress)... Anyway, Creditnet friends, I need some advice. Actually I already know what I need to do (I think), but I would like to ask the board regardless to humor and encourage me with a bit of indulgent reinforcement. Here's my situation. My FICO score is in the very high 700s now (as I've said time and again, thanks to Creditnet, Lizardking, bbauer [Creditwrench.com], Marie, marci, breeze, Lexington Law Firm, nutcase and goodwill letters, and the Knox County General Sessions Court). However, the principal reason given for why the score isn't even higher (ok, I'm a greedy pig... sue me... I was in the 500 club last year too) is this: "TOO MANY BANKCARD CHARGE ACCOUNTS" The Equifax/MyFico.com analysis continues explicitly: You have too many bankcard charge accounts... The FICO score evaluates the number of bankcard accounts you have. Having more bankcard accounts (Visa, MasterCard, Discover, American Express, Diners Club, etc.) than other consumers with credit histories of similar length represents higher risk compared to consumers with fewer bankcard accounts. Bankcards are a great convenience. But having more of them than you need may actually work against your score. We recommend moderation in credit. If you don't need it, or don't plan to use it, you're better off not applying for it. So (Matty, please forgive me)... ... please advise. Here's my current card roster in alphabetical order: American Express Blue -- 9.9% fixed APR -- $3,500 LOC. Capital One Kmart MasterCard Gold -- 11.9% fixed APR -- $2,700 LOC. Capital One VISA Classic -- 9.9% fixed APR -- $3,200 LOC. Chase Platinum MasterCard -- 7.99% variable APR -- $5,000 LOC. Citibank Platinum Select MasterCard -- 6.64% variable APR -- $11,500 LOC. Diners Club Montage Card -- 14.7% variable APR -- $10,000 LOC. First Tennessee ResourceLine VISA -- 7.75% variable APR -- $38,000 LOC (not kidding, lol -- I'll keep this one). Providian Gold VISA -- 16.9% fixed APR -- $3,000 LOC. I also have Sears, JCPenney, RadioShack, QVC, Target, and a few gas cards. I would like to approach the previously unthinkable goal of joining the Equifax FICO 800 Club. In order to do that, I'll need to weed through this mess and give up a few (seems unnatural to GIVE UP cards, argh), and I would very much appreciate any suggestions in how to approach this. (Matty, you out there, lol??) Doc
Doc, I really really really need your email, mines active on my link regarding something that only you would know about. Thanks a ton. Oh I would get rid of Blue, to answer your question.
I'd definately get rid of that Providian card. Not only because of the interest, but because they simply stink...lol. I think I would also get rid of the KMart Cap One...although its likely if you try, they might lower your apr to the 9.9 and make it very, very tempting...lol. L
Hey Doc! I feel so special that you actually put my name in a title! LOL. Well, let's see. I'm sure you know to keep your oldest tradeline open, so I won't even mess with that. I would ditch the Providian card because as others have said, they suck, and the interest rates are simply too high. I would get rid of a few of the gas cards, if not all (depending on what station you use most). Also look at your Sears, JCPenney, Radioshack, QVC, and Target accounts and decide which ones you use the most. Consider using a Visa, Mastercard, etc for items from the store instead (unless the card offers perks such as Sears where you get an additional 10% off with their card). If it was me, I would get down to 2 out of those 5 cards. Lastly, depending on how much you want to trim down, I would close out the Kmart Mastercard Gold (unless you can combine it with the Classic card, but I thought I read elsewhere they won't combine affinity cards). I would keep the other cards and work on getting credit line increases. I'm sure you know how to go about that (I've been a good customer, paid on time, I deserve an increase, blah blah, lol). Good luck Doc!
Re: Matty's cards (er, MY cards, so Doc! I loved your post, your wit, your humor, your pain! You da man! Now to the matter at hand: I'd agree with whyspers - get rid of Providian - unless it's your oldest tradeline. i'm also curious - how old is your oldest tradelin? I'm asking cuz I imagine that if your credit history is only a few years old - then you may not get that reason code as your file ages. Secondly - call me crazy - but why not keep em all - and remain in the high 700s. nothing to scoff at, eh?
I'm no expert but here goes nothing... Cap1 ---> BYE! Their interest rate is o.k. but they do not report limits and that has to be killing you in some way. Cap1 Kmart --> BYE! <see above> Providian --> BYE! Need I say anympre? Chase --> Not sure....it's a toss up. Depends on how long you've had the account. Citibank --> Definate keeper. Good LOC and APR Diners --> Keeper. Good LOC. APR isn't all that BUT you need this card for the fact that having a card from each class when traveling is good. 1st Tenn --> Definate Keeper! Amex --> (Don't go there! LOL...) Keeper just for variety purposes (i.e. Visa/MC/AMEX/Diners/Discover) This is what I would do in your case. Others may think differently.
Re: Matty's cards (er, MY cards, so Doc, I agree with Kelly, the age of these accounts is just as important as the limit and rate. I'm sure you know that fico likes an average of 3 years per account, so if youve got a couple of accounts that are 10+ years your averages would be ok and you can close whatever you want, but if you dont and you close an account that has been opened for only a couple of months, you either need to try to get it deleted it or alow it to keep you average down for 10 years. just some thoughts scott p.s. providian and radioshak would be my choices.
Re: Matty's cards (er, MY cards, so whyspers, Charlie, matty, Mark LA (you crack me up, heh), MP$40, the other -- I'm soaking all of this in... Great feedback, thank you. Matty -- you get the Dude of Honor award from me today. Kiyi -- my email's enabled... click on the blue "PsychDoc" above my messages. Kelly & Svanderwil -- here's the age of my accounts: ------------------------------------------------------------------------ American Express Blue -- Date Opened 11/2001 ------------------------------------------------------------------------ Capital One VISA Classic -- Date Opened 06/2000 (given during FICO 500 club period!) ------------------------------------------------------------------------ Capital One Kmart MasterCard -- Date Opened 03/2001 (given during FICO 500 club period!) ------------------------------------------------------------------------ Chase Platinum MasterCard -- Date Opened 12/1989 (back in the day before my credit needed repair, lol) ------------------------------------------------------------------------ Citgo/Citibank SD -- Date Opened 06/1986 (back in the day) ------------------------------------------------------------------------ Citibank Platinum Select MasterCard -- Date Opened 08/2001 (note: Back Door Double, lol -- thanks Sam & George) ------------------------------------------------------------------------ Diners Club Montage -- Date Opened 10/2001 ------------------------------------------------------------------------ Target -- Date Opened 09/2001 ------------------------------------------------------------------------ First Tennessee ResourceLine VISA -- Date Opened 11/2001 ------------------------------------------------------------------------ QVC/Hhld Bank -- Date Opened 03/1988 (back in the day) ------------------------------------------------------------------------ JC Penney / Monogram -- Date Opened 07/1984 (back in the day) ------------------------------------------------------------------------ Phillips 66 -- Date Opened 04/1984 (back in the day) ------------------------------------------------------------------------ Providian VISA Gold -- Date Opened 02/2001 (given during FICO 500 club period!) ------------------------------------------------------------------------ Radio Shack/Cbusa -- Date Opened 09/1988 (back in the day) ------------------------------------------------------------------------ Sears -- Date Opened 04/1983 (back in the day) ------------------------------------------------------------------------ Shell/Citibank SD -- Date Opened 09/1984 (back in the day) ------------------------------------------------------------------------ I hope you know how much I appreciate the feedback. I should have posted the account ages first as well. Thanks!!! Doc
Re: Matty's cards (er, MY cards, so I would close Providian Gold and Capital One opened in 3-01. I wouldn't close the others due to age, LOC and APR's. Also when reading here I saw not to close too many at once or you can take a big hit. I would get rid of those 2 and give it a month to see what happens. I wouldn't use the other Capital One unless to charge it to the max and pay it off immediately or it would hurt the ratio. BTW I'm fairly new here (about 3 months) and you give great information. I only got the nerve to post the other day (student loans....grrr) what to do about those?
I'd close Providian! When it reports closed by consumer. See if you still have the same reason codes.
Re: Matty's cards (er, MY cards, so Goodbye Providian and Capital One. I'll enjoy cancelling Providian. I'll probably cancel both Cap Ones per MP$40's advice. I will also cancel Target and Citgo. That would make 5 cancellations. With my luck I'll get rid of these five cards and my score will either stay still or go down, LOL. :-/ To stave off the immediate negative impact, I'll take DownNout's advice and cancel only one or two at a time. Thanks! Doc
Re: Matty's cards (er, MY cards, so I've pulled my ScorePower three times in the last six months. Once before opening a CapOne account, once with the account bal at $4k, and once with the account bal at $6k. My CapOne, like everyone else's, does NOT have a limit reporting. My score all three times? 750-755. The most recent pull shows a high credit / CL of $6k and a bal of $5.5k. Per ScorePower, my overall utilization is 11%. Not much has changed from pull to pull. I suspect that if overall utilization is low, those non-reporting CL's aren't all that bad. I'm hanging onto CapOne for now. They have Mr. Cooke after all! RM
Re: Matty's cards (er, MY cards, so Great Post Doc, I would begin a systematic cancellation campaign on ALL of them, tho not all at once. Telling them, as per Matty, I'm a great customer, pay on time and you need me. Then I'd say. If you don't cut my interest rate in half and double my limit then just cancel the damn thing. Here's what will happen; Some of them will want to keep your business and will give you a much better deal. The others won't. Let those go. The end result; Tho you'll have fewer cards you'll still have high limits and better interest deal on everything. An overall great improvement if you ask me. ~
Re: Matty's cards (er, MY cards, so Doc, I agree with MP$40 on the cards to close. BTW where can I get one of those First Tennessee ResourceLine VISA?
Re: Matty's cards (er, MY cards, so YEAH DOC! Can you please tell us how we can get one of dem First Tennessee ResourceLine VISAS? Thanking you in advance Mark LA
Re: Matty's cards (er, MY cards, so Doc- Why close any of them? Why not continue to let them age? Are you planning on making a mjor purchase (car, home)? If not, then personally I would keep them all, just remember the score you see and the score THEY see are 2 different numbers.
