Financial Review please

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Replied by Joeyman on topic Re: Financial Review please

Update: Closed my Discover card. I decided it was a chore to maintain too many credit cards.

- American Express Blue Cash $5,000
- Credit Union Visa $4,000
- Elan Financial Services Card $4,900

:cool:
7 years 6 months ago #1

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Replied by Joeyman on topic Re: Financial Review please

My Finished Profile (with credit limits):
  • American Express Blue Cash - $5,000
  • Elan Financial Card (West Coast Bank) - $4,900
  • Unitus Community Credit Union Platinum Visa (prime card) - $3,000
  • Discover More Card - $3,000

[/HR] Total credit]Note: this is still in progress. I am going to take PhynanciallySavvy's advice and close them slowly, rather than all at once.[/I]
7 years 10 months ago #2

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Replied by Joeyman on topic Re: Financial Review please

UPDATE: I just closed my Amazon.com by Chase Visa, this was surprisingly easy and they were quick. Practically no questions asked! :cool:
7 years 10 months ago #3

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Replied by Joeyman on topic Re: Financial Review please

UPDATE: My Elan Financial Services (aka West Coast Bank) card received a credit limit incase from $1,900 to $5,000!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!


Edit: It was $4,900 not $5,000. Oops, close enough?
7 years 10 months ago #4

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Replied by PhynanciallySavvy on topic Re: Financial Review please

Joey, heed W's advice... But for the older accts with SMALLER limits that have no promise of growing or keeping up with your credit worthiness, close them one at a time, but do it very slowly. (Like 1 every quarter, so as not to show any drastic changes to your bigger/more significant creditors who are also reporting monthly and looking at your spending.)

I just closed my oldest account, which was one of the first cards (sub-prime) that I got when I started rebuilding my credit, and my score didn't change by a single point on any of my CRs afterwards because the limit was so low. Truly, who cares about an $850 LOC with a sub-prime bank when you've got $36K LOCs with major lenders?!

Also, be careful with the BTs to one card... If you fill up the bulk of that CL, it might not make a difference to your other lenders, but it will raise an eyebrow to the only lender carrying your debt. It would be a shame to have your CL slashed with more charged than your available line. That's exactly what they did to me - TWO months after I opened the account (earlier this year).

Proceed with caution, but be disciplined! There are WANTS and there are NEEDS. Remind yourself of that when you're at the checkout. It doesn't take long to ruin good credit, but it takes at least seven years to dig yourself out of the hole.

-PS
7 years 10 months ago #5

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Replied by Wanderer on topic Re: Financial Review please

This is tough since logic says to close the cards that you don't use or won't grow with you. However, as the luck of the draw goes, you would lose your oldest accounts. When you have many years of credit cards, closing accounts doesn't affect the "average account age" or "utilization ratio" as much. But, in the early credit building years active older accounts help the FICO Scores. Now, good accounts closed will still help but, they drop off after a max of ten years (more or less) and they don't figure into the utilization formula. The American Express Zinc would be a close and Capital One would be (if it weren't and older account) since they seldom grow with the user along with Elan which is not growing with you. The Chase Amazon account (since it is the newest) would be a candidate for close as it would have little effect on "account average age" however, it will likely grow with you. Thus the paradox. Prime Cards versus older less prime cards. You may want to sit back and use the older cards once in awhile and basically 'sock draw' them so you maintain the "average account age" for another couple of years. You want to try and hit around six years on your average account age as it helps with prime cards alot and the FICO Scores. Speak with experience here. By playing with the credit bureaus I have finally been able to hit the 800's for FICO Scores but "average account age" was dragging me down as everytime I opened a new account it kicked against the older accounts and lowered my average account age "och"!!! :scared:
7 years 10 months ago #6

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Replied by Joeyman on topic Re: Financial Review please

I think this is what I'll keep:
  • American Express Blue Cash - 10 months old
  • Elan Financial Card (West Coast Bank) - 4 years old
  • Unitus Community Credit Union Platinum Visa (prime card) - 2.5 years old
  • Discover More Card - Today old
Wanderer made a good point via private message, "The Chase Amazon account (since it is the newest) would be a candidate for close as it would have little effect on 'account average age.'" He also noted to put my Elan away in a sock draw. That's exactly what I'll do and just use it for a subscription.
7 years 10 months ago #7

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Replied by derek1061 on topic Re: Financial Review please

I would only close the Capital One card if you are planning on keeping the Elan credit card. If I was you I would keep the Capital One, AMEX Blue Cash, Discover, Unitus.
7 years 10 months ago #8

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was created by Joeyman

Hello all ~


I'm in need of a financial review. I took a new position at work two months ago which came with one bad condition, pay loss. I was having some trouble adapting my spending to fit the loss. My balances have increased to unusual numbers for me ($1,238.70).[/quote]
[*]American Express Blue Cash - 10 months old
[*]American Express Zync Card - 1 year old
[*]Elan Financial Card (West Coast Bank) - 4 years old
[*]Capital One MasterCard - 2.5 years old
[*]Chase Amazon.com Card - 1 month old
[*]Unitus Community Credit Union Platinum Visa (prime card) - 2.5 years old
[*]Discover More Card - Today old
[/LIST]If I close accounts, this allows a larger payment to be directed towards the Discover More balance.


My Blue Cash will stay open, it is my highest credit limit and used the most. The Zync is never used and I am surprised it hasn't been closed due to no activity. The Elan card sucks but is my oldest account, I want your opinion on this because I really want to close it but am worried about hurting my credit report. The Capital One sucks, has no rewards, high APR, etc. again the age factor, your opinion please. The Amazon.com (chase) card is new and I applied on a whim, shouldn't have but it is what it is, I believe it is a prime card? The Unitus CCU card will stay open because it also has a high credit limit and a low fixed APR. And obviously the Discover More is new because it is going to be holding all my balances to avoid paying interest.


I am thinking off just keeping my AMEX Blue Cash, Discover, and Unitus CCU cards. Do you think this is wise? I should probably keep the Amazon.com card as well because it is new and has good potential to age, with benefits.


THANK YOU IN ADVANCE!
7 years 10 months ago #9

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