Jump to content

Sign in to follow this  
Cactus Flower

Keep or Close....?

Recommended Posts

I am 0% utilized and PIF on all cards now. Do not plan to go back to using the following cards that I've had less than 2 years.. no Annual Fee on any .... Keep ("sock drawer")? or Close?

 

HOOTERS $4250 CL

GM HSBC $750 CL (had less than 1 year)

 

I have several smaller limit GEMB-branded store cards on the chopping block as well ( never used / never will types ) Most have limits of only a few hundred dollars. These WILL be going.

 

Keep or close? I go back & forth. ;)

Share this post


Link to post
Share on other sites

I am 0% utilized and PIF on all cards now. Do not plan to go back to using the following cards that I've had less than 2 years.. no Annual Fee on any .... Keep ("sock drawer")? or Close?

 

HOOTERS $4250 CL

GM HSBC $750 CL (had less than 1 year)

 

I have several smaller limit GEMB-branded store cards on the chopping block as well ( never used / never will types ) Most have limits of only a few hundred dollars. These WILL be going.

 

Keep or close? I go back & forth. ;)

 

Sockdrawer them ALL until you hit the 2 year mark unless there is an AF.

Share this post


Link to post
Share on other sites

I'm not a "sock drawer" kind of gal ;) . I like to keep my life nice and tidy. I'd torch the HSBC but keep the Hooters for utilization until you get some other cards with higher CLs. I've gotten rid of plenty of cards within their first two years with no demonstrable effect upon my FICO.

 

Good Luck,

Share this post


Link to post
Share on other sites
I'm not a "sock drawer" kind of gal ;) . I like to keep my life nice and tidy. I'd torch the HSBC but keep the Hooters for utilization until you get some other cards with higher CLs. I've gotten rid of plenty of cards within their first two years with no demonstrable effect upon my FICO.

 

Good Luck,

 

See the deal is, I don't really even need the Hooters for utilization, I have $0 credit card debt and don't anticipate having any in the near future.

I already have a Cap1 at $3500, Target Visa $5000, HSBC Rewards $2000 for just in case.

 

It's about the best I can do with that BK still hanging over me for another 4 yrs.

 

I don't really like the sock-drawer approach either. I figure the GM HSBC can go because they're more apt to close that one due to non-use, correct?

Share this post


Link to post
Share on other sites

Part of your FICO is based on the average age of your accounts. It is advised they they stay open 2 years to help your average age.

Share this post


Link to post
Share on other sites

With no annual fee, you are better off keeping the Hooters card and making sure you use it once a quarter or at least once every six months. You may not have any credit debt that is reporting now, but you might in the future, and $4K can help with util%. Keep it until everything you have is at least five figures...

 

The other card is not worth keeping...low limits hurt all the way around.

Share this post


Link to post
Share on other sites
Part of your FICO is based on the average age of your accounts. It is advised they they stay open 2 years to help your average age.

 

 

My oldest card still being used is the Cap 1 .. everything else is under 2 years. My average age of accounts is still 23 years.

 

Not too sure I am worried about FICO .. just bought a car in Feb and don't plan to buy a house anytime soon...

not to say I want to see it drop into the toilet, but it's at 719 now at 2 of the CRA's, haven't checked the other one in a while.

Share this post


Link to post
Share on other sites

Cactus, even with 0 cc debt, your balances are still reported each month before you pay them. So keeping the Hooters helps to lower your utilization even if you PIF.

Share this post


Link to post
Share on other sites
With no annual fee, you are better off keeping the Hooters card and making sure you use it once a quarter or at least once every six months. You may not have any credit debt that is reporting now, but you might in the future, and $4K can help with util%. Keep it until everything you have is at least five figures...

 

The other card is not worth keeping...low limits hurt all the way around.

 

 

Hmm yeah, I guess you're right ...

 

I hate the thought of having credit card debt though -- it scares me enough that I wonder if I should get rid of the temptation. The cards are already 'cut up'...

 

I was just concerned because a lot of folks seem to think that Hooters/Merrick is subprime

Share this post


Link to post
Share on other sites
Cactus, even with 0 cc debt, your balances are still reported each month before you pay them. So keeping the Hooters helps to lower your utilization even if you PIF.

 

Understood.

Oh well, the card is cut up regardless, I won't be using it .. the interest rate is terrible and I have other cards I'd rather use. Points at hooters doesn't do me any good.

 

;)

 

Maybe feed the FICO monster with it from time to time I guess.

 

GM HSBC is outta here.

Share this post


Link to post
Share on other sites
I hate the thought of having credit card debt though -- it scares me enough that I wonder if I should get rid of the temptation. The cards are already 'cut up'...

 

I read ya. If you're not using the cards at all, then utilization isn't an issue.

 

If "temptation" is an issue for you, I would cut them up for real ;) . Credit cards make sense if you can pledge to yourself to PIF. If not, stay far away from them!!!!!!!!!!!! I use my card primarily for the cashback rewards while PIF. If I don't have the cash to purchase an item, I don't charge it......... :blush:

 

Good Luck,

Share this post


Link to post
Share on other sites
I hate the thought of having credit card debt though -- it scares me enough that I wonder if I should get rid of the temptation. The cards are already 'cut up'...

 

I read ya. If you're not using the cards at all, then utilization isn't an issue.

 

If "temptation" is an issue for you, I would cut them up for real :rofl: . Credit cards make sense if you can pledge to yourself to PIF. If not, stay far away from them!!!!!!!!!!!! I use my card primarily for the cashback rewards while PIF. If I don't have the cash to purchase an item, I don't charge it......... :rofl:

 

Good Luck,

 

 

I've been living that lifestyle for awhile now, I just wondered if it was smart to have all of these cards open that I'm not really using...

I feel like I do have to monitor them to a degree... as long as they are open.

Share this post


Link to post
Share on other sites
I hate the thought of having credit card debt though -- it scares me enough that I wonder if I should get rid of the temptation. The cards are already 'cut up'...

 

Available credit is not debt.

 

I was just concerned because a lot of folks seem to think that Hooters/Merrick is subprime

 

Most of those are the ones who got the annual fee variant or have a high APR. I hold the opinion that one should always look to the terms of a card in making assessments of prime or subprime. A no-AF, low APR card with a useable limit should never be viewed as subprime IMO...

Share this post


Link to post
Share on other sites

The APR was high on the Hooters card, I had no AF, but that was pretty typical back when I got approved, now it seems a lot of people are being zinged with AF's. Also, back when I got it .. I didn't have my Target Visa.

 

In the end, I wound up closing both cards. I really do not want to manage all of the sock drawered cards and so all of the store cards that I've opened in the last 6-12 months will be closed at a rate of about 1 a month. The cards all have small CL's -- $200, $300 etc and most are for stores where I will never shop (GAP, etc)

 

Going forward I'll be only opening up credit at places where I may actually use it.

 

I want to thank you for helping me decide and think outloud on the subject.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  




  • Today's Birthdays

    No users celebrating today.
  • Member Statistics

    • Total Members
      177,738
    • Most Online
      1,528

    Newest Member
    mmetaphor
    Joined

About Us

Since 2003, creditboards.com has helped thousands of people repair their credit, force abusive collection agents to follow the law, ensure proper reporting by credit reporting agencies, and provided financial education to help avoid the pitfalls that can lead to negative tradelines.
×
×
  • Create New...

Important Information

Guidelines