Close new low limit cards to increase AAoA?

[fateo]

This board has been a very rewarding find.

Can the experts advise me if I should close my WellsFargo and Bank of America accounts below since both are less than 6 months old with low limits and I was denied CLI even with a hard pull

 

 

AAOA Since Ex Eq Tu limit

7.44 10/2005 1 0 0 American Express Platinum NPSL (approx 18K via online authorization)

9.44 10/2003 0 0 0 CapitalOne Platinum $2,800

0.52 9/2012 0 1 0 Discover IT $6,000

0.50 9/2012 1 0 2 Bank of America Visa $2,500

0.44 10/2012 1 1 0 Chase Sapphire Preferred $22,500

0.44 10/2012 2 0 0 Wells Fargo Visa $3,000

0.11 2/2013 0 1 0 PenFed $13,500

0.11 2/2013 0 1 0 USAA Total Rewards MC $15,000

0.11 2/2013 0 0 0 PenFed LOC $500

Also, any advise with CLI strategy? Although I understand from other posts that the ideal Uti is 1% for FICO score...

What is the ideal Uti for CLI per card I am targeting and the Total

Thank You

[BobWang]

http://creditboards.com/forums/index.php?showtopic=508347

[moni08]

Mr. Wang for president!

[fateo]

Thank you Bob, I was hoping you would answer.

As an engineer I appreciate your charts

[fateo]

Bob, how about a...

The Master Strategy For CLI Thread.

To cover Utilization, payment, and how much you should you ask for and wait.

Should you focus on a pattern for 3 months per card or target multiple cards at the same time?

Can you ask for Credit Line Matching to your highest card.

How often??

Thanks again.

[BobWang]

Bob, how about a...

The Master Strategy For CLI Thread.

To cover Utilization, payment, and how much you should you ask for and wait.

Should you focus on a pattern for 3 months per card or target multiple cards at the same time?

Can you ask for Credit Line Matching to your highest card.

How often??

Thanks again.

 

That involves too many variables.

 

I'm a linear processor.

[Hitch]

Closing the cards won't do anything for your AAOA. Once closed, positive lines remain on your report for 10 years.

 

Slowpoke edit: Yikes! Which is exactly what BW's link explains.

Edited March 9, 2013 by Hitch

[fateo]

ok, that sounds fair..

How about one assuming my TLs above, 750 FICO, 5.4Yr AAOA, 10 years oldest TL, and assuming infinite cash, discipline, and patience.

How do I get my $65K Total TLs to your $1,105K?

[BobWang]

All joking aside, you need to make a lot of money to achieve that.

[fateo]

How about some clues..

 

Can I take your JFCU as a template.

 

Use Credit Unions...

Open Savings 30K

CD 10K

wait 3 months. apply for LOC for $40K.

rinse. repeat 92 times!

[BobWang]

Yeah, kinda like that.

 

Getting 6-figure limits is easier when you have 7-figures with the issuer.

[tjguitar]

Closing the cards won't do anything for your AAOA. Once closed, positive lines remain on your report for 10 years.

 

Slowpoke edit: Yikes! Which is exactly what BW's link explains.

 

 

So in ten years you might get a bit of a boost..if the majority of your accounts are older than the one you closed?

Edited March 10, 2013 by tjguitar

[SteveinWa]

So even closed accounts add to your average age of accounts?

If that is the case, then why not close all low credit limit accounts as long as you keep the utilization low on the remaining?

[NomNomNom]

So even closed accounts add to your average age of accounts?

If that is the case, then why not close all low credit limit accounts as long as you keep the utilization low on the remaining?

 

Sometimes it can be beneficial for an account to "age" open and positive. E.G. let it report a number of months of on-time payments and use before closing it. Otherwise during manual reviews it can look funky if you have card after card opened then closed, opened and closed. Could signal "churning"-like activity. At least that is my understanding.

[BobWang]

http://creditboards.com/forums/index.php?showtopic=508347&do=findComment&comment=4816719