Originally Posted by
golmaale
I found that I have too many active Chase, Citi & Capital One cards that I rarely use. Some of them have annual fees and I will be getting over the honeymoon period with them all and fees will be charged from the anniversary date onwards.
Since this is the season for pruning, I was wondering what is the best way to prune these cards so that I can launch an apporama when the next bazooka deal comes along (pardon the metaphors, 'tis the season to be drunk). The objective is (a) to not hurt the credit score (b) massage the credit score if at all possible and (c) to save money
- Should I close accounts outright?
- Should I call the CC companies to switch the fee payable cards to free versions (without bennies)?
- Should I do (2) above AND request that the credit limit be reduced?
- Any other course of action?
Thanks for any advice you may have.
In order to help your credit score, the best path would be to downgrade to the free version. If you close an account or reduce the credit limit, your balance-to-limit ratio will increase simply because you are decreasing the denominator. A higher balance-to-limit ratio has a negative impact on your score. If you plan on churning, you will probably have to close some of the cards in order to get approved by that lender again. Your credit will take a ding, but you have to weigh the pros and cons.
If you're trying to massage your credit score, spend money on each of your open credit cards and pay it off on time in full each month. Over time, you will build a long credit history with several lenders.