Kill or keep the cards? (pay, rate, transfer, credit)

[AlDente67]

I've got a few credit cards open with zero balances. These were opened for free balance transfer promotions a couple of years ago. I paid them off in the meantime, so they served their purpose.

Now I have open credit for $6k on one and $6k on another.

FICO scores indicate an average age taking these into account, as opposed to my oldest cards dating back to the 1990s.

Question is to close these out or leave them open, with possibly a small charge here and there to keep them active (and paid off at the end of the month).

Not sure if the FICO dings you for average age, or possible open credit (assuming I'd run out and charge up to the limit if I wanted to)

Would you kill them or leave them open? They have no annual fees, so it wouldn't cost me anything to carry them, and the interest rate is nothing to write home about.

[Labonte18]

I'd leave them, pending on how much available credit you have.

As best I can remember, FICO only dings you for not having enough revolving credit, or a high usage..

[AlDente67]

Originally Posted by Labonte18

I'd leave them, pending on how much available credit you have.

As best I can remember, FICO only dings you for not having enough revolving credit, or a high usage..

I figured as much, but I used to subscribe to Experian credit tracker, and it noted a negative comment on average age of the accounts.

Experian sucks, as their tracker report doesn't even reflect the actual score lenders use. For $22 per month, you'd assume you get the real score. But you don't.

[Labonte18]

Originally Posted by Orion99

I figured as much, but I used to subscribe to Experian credit tracker, and it noted a negative comment on average age of the accounts.

Experian sucks, as their tracker report doesn't even reflect the actual score lenders use. For $22 per month, you'd assume you get the real score. But you don't.

I get Vantagescore(?) free every month from my bank. When I've pulled a FICO, it's been within 8 points each time.

I've been dinged on the 'average age'.. Think of it this way.. Eventually, once there's age.. That'll stop mattering. And.. Unless the average age on the accounts is a year or two.. It's not having much of an effect. Handful of points.

Some places just put things up there to say something, too.. My credit score is around 813.. I have 3 things hurting it..

1) Largest Credit Limit is too low. - Ok.. I just requested a raise, they moved me from $5k to $13k.. That ought to shut them up.

2) Balances are too high compared to loan amounts on installment accounts - I just have a mortgage and it's at less than half now.. Not sure how low that needs to be.

3) Date of most recent account is too new. I took out a $2500 personal loan in December to pay for home repairs. Paid it off February 2nd. so, that argument should be gone shortly, considering it's paid off.

[galaxyhi]

I have one account I had when I had to finance a new furnace. It shows a credit line of $8500. I keep it open as it shows for credit use to availabilty when I have used credit as lower as I have lower use against it.

It is ultimately up to you, but also re-evaluate who has a better interest rate and/or cash back programs on those cards you want to dump. It they have no redeeming value, or low credit limits, and you really don't want them, close them down.

BuT I have kept ALL cards I have/had. 1] for additional credit history, 2} for avail-use balances, and 3] in case of emergency.

Up to you, grasshopper.

[MDrenter223]

Those cards effect on your average age of credit won't drop off for a long time, but if you cut them now, when they do drop off 7 years from now you'll lose that old card. Plus keeping the card open keeps your available credit high so you can put your other cards on autopilot without utilizing too much of your credit (remember you want to stay under 30%, and if you use your card to make everyday purchases and pay it off on the statement due date you could end up using a whole lot of credit).

[Labonte18]

I'd post a picture of this.. but.. I pulled creditkarma scores on myself today.. And, while CreditKarma sounds like a scam.. I haven't had problems. Seems legit to me.

Currently shows an 804 from Transunion and 796 from Equifax.. Based on data that is about 2 weeks old.

They say the items that matter are..

Credit utilizaion - High Impact - Best score should be 0-9%
Payment History - High Impact - Best score should be 100% on time. Less than 96% on time is poor
Derogatory Marks - High Impact - Best score should be 0, 1 knocks you alot, more than 3 is poor
Age of Credit History - Medium Impact - Average of 9+ years is excellent
Total Accounts - Low Impact - 21+ for excellent
Credit Inquiries - Low Impact - 0 for Excellent

The only areas I didn't get "excellent" were total accounts, which I got 'poor' as I only have 8, Age of Credit History, which I clock in at 7 years, which is "Good".. And on Experian, there were 2 'hard' pulls of my credit. Likely, the first when I took out the loan and the second where I got an increase in credit limit on my credit card.