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Closing Accounts(Long)

Discussion in 'Credit Talk' started by jfpruitt, Jul 10, 2001.

  1. Jul 10, 2001 #1
    jfpruitt

    jfpruitt Well-Known Member

    Here's my dilemma. I'm getting ready to consolidate about 23K in CC Debt into a low interest loan. I've got my spending very much under control and the CC's were used in college some time ago. Anyways, I'm needing advice on which accounts to close and keep open to help increase the FICO. Here's a list of my cards and their limits, I want to keep enough open to establish credit. I'm thinking of keeping the 4 Visa/MC b/c once I pay them off, the CC will have a much better limit, or, should I just keep 1 or 2 with the highest limits???? HELP!!!!

    Major Cards

    Next Card---Limit 6K Established: 1999
    Plat Visa--Limit 2K Established: 1995
    Providian--Limit 500 Established: 2000
    Capital One Visa--Limit 200 Established: 2000
    Capital One MC--Limit 200 Established: 2000
    Amex--Limit Open Established 2000

    Store Cards

    Fashion Bug Limit 500 Established 1995
    Sears Limit 3000 Established: 1995
    Dillards Limit 2000 Established: 1995
    Target Limit 200 Established: 1995
    Best Buy Limit 2000 Established: 1995

    So, which ones do I keep of each?? I know that once I pay off my balances, that the Capital One and Providian accounts will increase my CL drastically...and the AMEX I'd like to upgrade in the future....the Store Cards are mainly there due to the long history of them, but should I still keep them??HELP!!!!
     
  3. Jul 10, 2001 #2
    steve

    steve Well-Known Member

    I would combine the two Cap1 accounts into one and cancel some store cards. I'm not a big fan of store cards and I only keep one to increase my FICO (sears).
     
  4. Jul 10, 2001 #3
    Saar

    Saar Banned

    Although I tend to agree w/ steve, yours is a tough decision, since all your store cards will soon reach the age of 7 (which has a special score significance). Choose one that you want to keep, and close the others shortly after they reach the age of 7.

    Once you're done, close 2-3 CCs (Cap 1 & Providian since they're newer tradelines), until you're left w/ no more than 5 revolving tradelines (including store cards).

    However, if your credit is otherwise perfect, having more than 5 tradelines won't decrease your score all that much. This factor is more relevant for people w/ so-so credit.


    Saar
     

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