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Closing Open Accounts


blahzay
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The last post in this topic was posted 1780 days ago. 

 

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Long story short, I tried to help my nephew open a gym and applied for 0% financing accounts and since we weren't able to get to the needed amount on these new accounts, I know I messed up big time and now have way to many open accounts. I know people say just keep them open but does it hurt to close accounts? I have too many low limit amounts. Here is a breakdown of what I have currently.

 

Chase Freedom - $4000

Chase Amazon - $3000

Navy Federal - $25,000

Navy Platinum - $12,700

Discover Blue - $10,100

Discover Gold - $1,000

AE Blue Cash - $2,100

AE Blue Cash Business - $5,000

AE Business Plus - $18,000

AE Gold - Not sure on spending power

AE Gold Business - Not sure on spending power

Wells Fargo Cash Wise - $3,500

Bank of America Mastercard - $6,000

Paypal Mastercard - $10,100

Toys R Us Mastercard - $10,000

Sears Mastercard - $10,000

Sears Dept. - $5,000

Best Buy Dept. - $10,000

Macys Dept. - $10,000

 

 

I know this is WAYYYYYYY overboard but I tried to build a business for future freedom but got screwed.

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It's not the worst thing that could have happened. The limits aren't that low. They will grow over time. In a few years you'll have a solid thick file.

 

Just forget about them all for 2 years other than asking for CLI every 6 months.

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Shifter is right.

 

If you want to build up limits, instead of just closing accounts you can combine credit limits. AmEx allows you to shift credit limits around. So does Chase and, if you play your cards right, Navy. It's easy to build up credit limits on Synchrony cards. Macy's is also an easy touch for CLIs.

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I know this is WAYYYYYYY overboard but I tried to build a business for future freedom but got screwed.

Just to be clear, you screwed yourself. Part of any business is a business plan that involves due diligence. Financing is part of that process.

 

With that aside, my suggestion would be to leave everything open. When AFs come up on the AMEX cards, call for retention offers. If none of them make financial sense, close those products.

Edited by Konrad2012
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Flip this around -- what benefit do you think will be gained by closing the accounts? Yes, opening a boat load of accounts in a short time affects your AAOA (average age of account) and has a short-term negative affect on your FICO's. But at this point, the damage is already done. There's no "take-backs".

 

Figure out which card(s) make sense for you to use for daily-use. Make a spreadsheet of the rest of your cards, with a column for "last date used", and then put them somewhere secure (aka "sock drawer" them). Make a point of making a few charges on each of your sock-drawered cards at least once a quarter to avoid an account being closed for inactivity. Some people cycle a different sock-drawered card in their wallet each week,and use it for a small purchase. Others do it in batches - loading a couple bucks on an Amazon e-giftcard, or giftcards at Starbucks. You'll see your FICO start to recover from the load of new accounts in 6 months. With time, these 19 accounts will make your AAOA impervious to the impact of future new accounts.

 

A nice thing about the two Biz cards is that balances on those accounts don't show on your credit reports, and don't count towards overall utilization. So if you need to carry a balance, those accounts are a good choice if you're concerned about the balance affecting your credit profile.

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Keep everything OPEN that has no annual fee. Be sure, like Jeff said above, to put a small purchase on each card at least once every 6 months.

 

Have either of the Amex Biz cards been open for more than 13 months? If so, you can combine into one if that makes it easier for you.

 

The Toys R Us Mastercard might convert into something else, or it might just get closed -- all the US stores are closing now.

 

And what is a " Discover Blue???????"

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