I have had an Orchard Bank (HSBC) credit card for only 5 months with a $300 CL and a $79 annual fee. I have used the card sparingly, and paid it off each month. I recently applied for an HSBC Platinum MC and was just approved with a $1500 CL and no annual fee. Should I just close the Orchard Bank account now since I will not be using it? The $300 hit won't really effect my total available credit that much.
As you noted, it probably won't affect you much either way. You might wait until 2 or 3 months before the next annual fee is due, and close it then. Make sure no small balance is due, such as from residual interest from a carried balance in the prior month. You want to have received a statement showing $0 balance. Request that they notify the CRAs that it was closed by consumer, and request that they send a letter confirming closing the account. If you call, send a followup letter including the same. Keep copies of your letter, and their reply, for your records.
I think we're missing the bigger picture here. 6 months ago, I couldn't get approved for an Orchard Bank or Capital One card, although a month later I got the Orchard Bank card with a $300 limit. And now, my scores are up about 100 points to the mid-600's and I get approved for an Audi loan and an HSBC Platinum MC with a $1500 limit! I am definitely on the road back to good credit and I have this site to thank!
Congratulations! Keep in mind that you open accounts over time, subject always to better terms than what you already have, and that you open a new account intended to replace a poorer term account before you close that older account. Also aim for diversification of creditor risk, with multiple different potiential lenders even if you are not using them all, so you are not in a bind if one gets bought, or restricts your terms. And use maybe one for most routine purchases, while using others for any balance transfers on competitive terms if you actually choose to carry a balance. Don't count on purchase rates being kept unchanged, and reward those who give you good terms and good customer service while you phase out those who don't. Just as the lenders score you, when you have choices, you can score them.
