I opened my first credit card, secured, about a year ago. There's 200 dollar limit. Three months later, I got a Shell gas card (225 limit), then in December, CC from WaMu for 1500. My last CC was opened just recently, with 500 limit. Now I think maybe I'm ready to close my secured card? I know it might affect my credit score (currently FICO 684, others around 680). It will shorten my credit history by 3 months and my credit availability by 200. Anyways, I don't use that Orchard Bank card anymore, cause they raised my APR from 16.99 to 27.99 and couldn't tell me the reason! Is it time to close it? I'd rather have 200 bucks, I guess.
2007-04-20 07:45:05 · 5 answers · asked by Alanna V 2 in Business & Finance ➔ Credit
I would wait it out. Just charge a small amount and leave a balance of no more than $20 on it a month just to show activity. Orchard did the same thing with me, but I ended up getting a better card with a better interest rate with them when I tried to close my account with them becuase I had several offers from other credit card companies (inclding them, how ironic) for a better card. It's never wise to close accounts, especially if you've had an excellent payment history with them. You may think it's just "3 months" but sometimes that can make the differnce between getting the loan you need and getting the loan you want. Payment history comprises 35% of your whole score. You don't want to tamper with that in any way, especially if you had that account first. You close that, then the history that got you those other cards will be gone. Proceed with caution before doing that.
2007-04-20 08:12:42 · answer #1 · answered by Anonymous · 1⤊ 0⤋
That 3 months may seem like a small amount of time, but can be devistating to your credit score.
Keep the card, charge small amounts and pay the balance in full. This will help keep your credit score up.
The $200 is a small price to pay, when you consider the impact of your credit score dropping and the possible interest rates you would be charged if you decide to buy a house or get an auto loan.
2007-04-20 15:31:32 · answer #2 · answered by Matt 4 · 1⤊ 0⤋
I agree with Smoovy and Matt - keep it open (as long as you are not paying a fee)
Orchard and HSBC hate to see someone get better (prime) cards, it's just their twisted way of thinking. That is probably why they raised your interest rate.
There "is" a difference between major credit cards and store/gas cards as far as your reports go. Store/gas cards do not rate quite as high as major credit cards.
That is why it would be best to keep the account open until your WaMu gets some good age on it.
You might also contact Orchard about unsecuring the card.
2007-04-20 18:42:30 · answer #3 · answered by echo 7 · 0⤊ 0⤋
CLOSE IT . SEEN U HAVE 2 OR 3 OTHER CREDIT CARD
2007-04-20 15:04:31 · answer #4 · answered by helpme 2 · 0⤊ 1⤋
I would close it, why in the world did they raise your rate like that?
2007-04-20 14:51:29 · answer #5 · answered by exiletheking 2 · 0⤊ 1⤋