Which account to close?

Discussion in 'Credit Talk' started by Sorin, Oct 16, 2000.

  1. Sorin

    Sorin Well-Known Member

    Here's the story...

    As many of you already know, I have 5 open
    accounts. I'm planning to get an AMEX in
    several months, that means I'll have 6
    of them.

    I've heard that 4-5 is a reasonable number,
    but 6 is too much, so at least one of the
    smaller guys will have to go. The problem
    is i cannot decide which one of these:

    -Providian Classic Visa, $1100 line, 24%
    APR, annual fee, no grace period, online
    access, one year old at the beginning of

    -Associates Classic Visa, $1000 line, 27%
    APR, no annual fee, 25 days grace period,
    no online access, one year old in February.

    I'm pretty sure I can get Providian to drop
    the annual fee and maybe put some grace
    period on it, in which case I think I'll
    keep it.

    Unfortunately, these are my oldest active
    accounts, and I understand that this matters
    when computing the score.

    What do you think about it?

    I'm also planning a car loan at the beginning
    of the next year, should I apply for AMEX
    first or for the loan?

    Best Regards

  2. JP

    JP Guest

    I was under the impression that AMEX generally looks for at least 24 months of payment history before granting cards.

  3. Cadillac408

    Cadillac408 Well-Known Member

    Tough choice! I guess if I were in your shoes, I would get rid of the Associates for the mear fact that the APR is ludicrous and they have no on-line access! You can always get Providian to drop the annual fee and lower the APR. Plus we all know that Providian is very generous w/ credit line increases. I'm not sure about the Associates. The thing that makes me mad about Providian is that they put all those cheezy commercials on late night (to attract people with bad credit who are up late at night because they probably have no job to go to in the morning!). It specifically states that they are designed specifically to help people re-establish credit. So, when you go places and pull that card out, it's kinda embarassing...wheather it's classic, gold, or platinum! Just my opinion.....

    I also think you should get the Am/Ex before you get the auto loan. Like we all know, Am/Ex attracts all kinds of lenders so the chances of you getting a good auto loan with a good rate are greater if they see Am/Ex on there. This is based on the assumption that your going to apply for an Am/Ex charge card, not Optima or Blue. If you're going to do Optima or Blue, then get the auto loan first so you can show that your debt:income ration is low. Maybe someone else can shed some light in this area. I'm just speculating.
  4. Michael

    Michael Guest



    who told you that 6 cards is too many????

    I have quite a few clients with 8-9-10 cards and are still getting great prime offers.

    My advise wait and close the Associates in another 6-12 months, then replace it with a good prime card like Citi, U.S.Bank, or another.
  5. David

    David Well-Known Member



    I believe that the 24 month AMEX situation isn't necessarily true. While I first applied for an AMEX Blue with 2 months of credit history (I didn't know!), I reapplied again 6 months later. No, I wasn't approved, but it was because of excessive recent inquiries. Nowhere on that denial letter did AMEX mention insufficient established credit as on my first letter.
  6. Sorin

    Sorin Well-Known Member

    Providian Update

    My latest statement from Providian is online
    as of today... two things to learn from it:

    - If you don't use the card, they won't be
    too eager to increase your limit. Several
    months ago, when i used it heavily, they
    increased every 3 months. Now, this is the
    4th month and no increase yet...

    - There is no finance charge for about
    $80 balance. Coud it be possible that they
    put a grace period on the card? Or the
    balance is too low to bother?
  7. Sorin

    Sorin Well-Known Member


    I'm afraid they'll say I have too many
    open accounts...

    And anyway, the space in my wallet is
    limited and I have plenty of credit on my
    other cards....

    And BTW, I already have Citi ...
  8. Michael

    Michael Guest


    start worrying about too many accounts when you get over 1 dozen.

    I'm serious, you should be more concerened with your debt to income ratio keep it under 15%

    And the amount of available credit used, keep at least 50% os credit unused!

    Hope this helps you.

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