I was checking my Amex account to see if my credit-card payment had posted yet (it hadn't). Then I noticed a link to get a complimentary credit report AND SCORE. I haven't actually seen my score in a while because it costs money, and I realized I hadn't requested my report in awhile.
I proceeded cautiously, reading all the terms and conditions to make sure they weren't signing me up for a monthly subscription that I had to opt out of. Not that I could tell--just a free report and score from Experian. Weird!
Anyway, I found out I have seven open credit accounts. That seemed high, but when I looked at them I realized it was correct.
* I have the Amex one, which I'm keeping open until I pay it off.
* Then I have a Chase Platinum which I use to rent cars (and have recently started using for other things to rack up reward points, paying it off within a week or using) because it has liability coverage for car rental.
* I have another Chase Visa that I don't use anymore, but I've kept because the interest rate stayed decent (my others are crazy high), in case I ever do need to go on credit again (here's hoping not!).
* Then I have a Discover card that I opened to put a trip on 0% interest (paid it off before I was charged a cent of interest); I've kept that open meaning to charge something on it because I can get some money back if I use it a bit more. (I should either go ahead and do that or just close it.)
* I have a Sears card that I use for big appliance purchases, because I can buy them and let the balance sit with no interest and no payments for a year. (I've done that with a dishwasher and a fridge, and right now I've got a stove purchase sitting on the card that I'm planning to pay off by November, before the interest hits.)
* Then I have my bank overdraft line of credit, and
* My mortgage.
Yep, that's seven all right!
How many of these would you continue to keep open? I could see closing the Discover card, the Amex and one of the Chase Visas. I like the convenience of the Sears card and the overdraft LOC, and of course I can't get rid of my mortgage. My other Chase card has a $16K limit, which seems like plenty to have available. But would you keep the others open to keep the credit score high?
Because...the score they gave me was 805! I think that's the highest I've ever been, so I must be doing something right. Which makes me think I should just leave all the accounts open. I'm not a score fanatic though, so would a small ding (if it happened) really matter in the long run?
Unexpectedly got credit score
April 28th, 2010 at 09:47 pm
April 28th, 2010 at 10:00 pm 1272492033
April 28th, 2010 at 10:04 pm 1272492282
April 28th, 2010 at 10:56 pm 1272495394
My rule is one mortgage and 2 credit cards. Closing cards doesn't make a hoot of a difference in the long run, if you have a good score. (I generally always close an old card when I open a new one - have always had a top tier FICO score). As long as utilization ratios are good, anyway. I do admit closing a bunch at once may be a little different, but if I were you, I'd start systematically closing any non-useful cards.
Right now I have 3 cards, because I anticipated my Chase rewards drying up by now. (Will close the card when the rewards dry up - there is nothing else redeeming about the card). Usually I use one card regularly, and keep a backup for emergency.
We actually open a Sears card every time we buy a large appliance. Always an upfront discount. Then we close the card, and do it again a few years later.
April 29th, 2010 at 03:46 pm 1272555984
Do you have any thoughts on which credit issuers are best to keep? I'm thinking one of the Visas and then either the Discover or the American Express card. Is Amex slight more widely known than Discover?