To LizardKing & Others

Discussion in 'Credit Talk' started by Concerned, Apr 11, 2001.

  1. Concerned

    Concerned Well-Known Member

    Started using credit cards a year ago. Pay off all balances at end of month. Decided I wanted more choices so applied for more cards. Now I'm being approved all over the place I have too many cards (Discover, Discover Platitum, 2 MasterCards (Citi Bank), 5 Visas (including a 1st USA, Providian, and Next). I'd applied for lots of cards at once and continue to get approved so possibly another 4 or 5 cards on the way.

    Problem: I don't need or want all these cards!!!! But am concerned that closing them so soon after I've received them will hurt my credit. My oldest card is one year old. I want to get rid of 1st USA, Providian, and Next for sure because I keep hearing over and again that these are bad companies. My other cards are with Bank of America, MBNA, American Express, and a local credit union)

    1. Is there a strategy I can use to get rid of most of these cards without hurting my good credit rating.

    2. Having applied for so many does that hurt my credit rating. I'm not using most of them. If this period of applying for cards has hurt credit rating, how long does it take to recover

    3. What happens if once receiving some of these new cards, I never "activate" the card? does it still show on my credit report that it's an open account?
  2. miles

    miles Well-Known Member

    Wow! Your situation makes mine seem petty. Congrats on the new cards, but I definately agree with you, you have too many. Saar & Momof3 gave me sound advice (see my post below). If you close any of your new accounts, dispute them when they show closed so they don't affect your overall age of accounts. I would definately keep your MBNA, AmEx, credit union and possibly your Discover platinum. Which one of your accounts is the oldest? Keeping older accounts helps your score. Good luck with your decision! Hopefully others can give more sound advice.
  3. Momof3

    Momof3 Well-Known Member

    Wow, you have way more cards than you will need and although your credit is good at this time for getting the approvals all these new accounts will take a toll on your score, been there done that I went from 2 to 12 in about 6 months not smart move on my part. Keep your oldest account for sure, not sure which one that is, but keep it. Miles gave you some great advice. Curious your oldest tradeline is one year old correct, any idea what your Fico is??
  4. Tammy

    Tammy Guest

    just pulled my report yesterday and it's 760 something. How much damage will it do that I've had all these recent approvals and hence request for my report? and how long will it take for that damage to clear? Also, can I go ahead and close accounts like (First USA which I've activated when I received it a month ago, but never used it. I used Providian once, paid it off when I got it in January and haven't used it since; actually afraid they might play some game with me from what I've been reading here). My oldest card is one year old (Discover). Will closing those accounts hurt me. And what do some of you mean when you say I can close them but dispute it right away? I apologize for the remedial questions, but I just started reading this board a day ago, so there are lots more questions where these came from.
  5. Tammy

    Tammy Guest

    I also wonder whether it wouldn't be a good strategy simply to keep the cards, rotate them by charging small amounts on them every three months or so? I won't be needing a serious loan for three years or so when I plan to buy a car and house.
  6. Concerned

    Concerned Well-Known Member

    Pulled my own report from Equifax the other day. FIC0 is 760. How bad with all those inquiries from applying for recent credit cards affect FICO and how long will that impact take to clear? I won't be buying a house or car for another 2 years. I wonder if one useful strategy won't be to keep the cards and rotate them every three months paying them off in full as I do now (right now I don't use most of them). Also does it show as open on your credit report if you never "activate" the card. By the way, the reason I went so crazy in applying for cards is I was searching around for the best deals and didn't imagine or think I get approved for so many cards. And didn't realize that there was any possible impact for accepting a card and then deciding I no longer wanted it. Credit cards are turning out to be more interesting then I'd ever imagined.
  7. Momof3

    Momof3 Well-Known Member

    You mentioned you had one 12 month tradeline, do you have any others accounts, installments etc. A score of 760 is great, but with a short history like that it kinda throws FICO scoring logic out the window.

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