Scaling Back?

Discussion in 'Credit Talk' started by milavant, Aug 13, 2003.

  1. milavant

    milavant Well-Known Member

    I have two Mastercards (Citibank and Chase), an AMEX,a Visa (Bank One), and a Sears card.

    To make life simple, I would like to eventually scale back to the two bank cards I use most, plus Sears (for special sales).

    I am thinking of just not using the other two cards and eventually canceling them (but not now). I don't want to use a card twice a year just to keep it "active."

    Then I would be down to one Mastercard, AMEX, and Sears. I only really use Mastercard and AMEX, plus Sears occasionally.

    How would this affect my credit rating and FICO? Are two bank cards plus one store card enough? Or do I have to keep the other two going forever?
  2. lbrown59

    lbrown59 Well-Known Member

    How would this affect my credit rating and FICO?
    It can or will increase your utilization thus leading to jacked interest rates and insurance premiums.
    Also it could trap you into jacked rates on balsnces you can't get out from under due to not enough credit available on other cards.
    THE END ** *** ** LB 59
  3. Hedwig

    Hedwig Well-Known Member

    It depends how it would affect your score based on other information. You need to consider the age of the tradeline as well as your ratios. You may or may not have your rate jacked, depending on your overall situation. But consider this--if you only have one bank card and they jack the rate, lower your limit, or cancel your account, you're stuck.

    I think it's better to keep the cards and use them several times a year, then pay them off. Unless, of course, they have fees attached to them. Then I'd get new cards without the fees before I canceled them.

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