I have thought about whether I will need an exceptional credit score like I have for a large purchase, like a car or home. While I am planning on getting a new car in the next little bit, I am going to pay cash for that. There is a chance I might sell my current home and get something smaller, but that is not planned for any time soon.
All of my credit cards are Visa or Amex; I haven’t had department store or gas company cards in a long time. My husband and I charged almost everything and paid the balance in full each month; I continue to do the same. Other than the 2 Amex Blue cards that are almost 10 years old, the others are 25-40 years old.
The “business” credit cards and bank accounts were for business expenses, but in our names, so not a company card or account; that is except for the bank account I already closed.
I think I will try to see if Amex will increase my limit on my Delta SkyMiles card as I would eventually like to also cancel the two Blue card. Not in as much of a rush for those. If they won’t increase the SkyMiles limit, I might try to see if they will drop the fee on the Gold. I have no need for 4 Amex cards!
My credit score is as high as it is due to prior history. I do not know how much, if at all, it will change now that it is only me. I have seen it go down a few points when I have a large statement month, and go right back up the next month after that statement due date. I assume if I cancel a card I will see within a couple of months how it affects my credit score.
I will tackle the Gold Amex this week and see what they will or won’t do.
I recently closed out a credit card, so now I only have 2 cards. The first month after closing my credit score dipped and then it went back the following month. The one I closed was over 10 yrs old with fairly high limit.
We are planning on buying a car too but plan to pay all cash. We are also looking to swap some rental properties with others—again. We expect we will have very little to no cash needed for it. If we do need credit, our current score should be more than enough.
This - if you’ve always paid your bills and always been able to get credit, closing a few accounts is highly unlikely to impact your ability to continue obtaining credit.
It’s when you have defaults - that you have trouble.
Long ago when adding daughter to our car insurance the Allstate agent took a look at all of our policies. She said, “oh - you have a great credit score. that qualifies you for a better homeowner’s policy… cheaper premium, roof replacement not subject to $2000 deductible”. We switched, and the next year our roof got clobbered by hail. Deductible was $500 (like our policy at that time).
@snowball…I recently dumped my Delta Amex (due to fee increase and not using) and kept my Blue Cash Amex. Before I did dump, I went online and did a credit limit transfer from Delta to Blue. Did not have to talk to anyone; took about 1 minute. Credit score did not budge.
(I tried to replicate just now so I could give you the steps, but since I only have one Amex account now, got message that couldn’t do it. ) But I recall it was simple (hey, I did it!) Go online and type in Credit Limit transfer in the search area.
So I get how the dropping of high limit credit cards changes the utilization ratio, but alternately, the accumulated credit limit can affect the debt to income ratio.
Each of those high limits are seen as potential debts. When you drop those cards, it can increase your credit availability because you have less potential debt on your, presumably, unchanged income. Of course, this is only considereed at the time of debt application, along with your credit score. It is the combo of these that will impact credit approval.
@gosmom I was excited to read this, and immediately went to check. I don’t know if it is just my card, or Amex doesn’t offer this online anymore, but the option is not there. Each of my 4 cards has different options; only my Delta has an option to increase my credit limit. If I can do something online or by chat, that will always be my choice over talking to a live person!
@Colorado_mom when our kids were teenagers, we added each as an authorized user on 2 of our cards. This gave them a nice credit score and easy access to a card on their own once in college.
@gosmom Yes, I did; I do not have that option on any of my cards. Only the Delta SkyMiles card even has an option to increase credit limit, which is under the Payment & Credit Options. I checked all 4 accounts to see if it was available on any of them, and it wasn’t.
@gosmom Update: I was wrong about the transfer option, but I still do not have it on my Gold or Delta. The 2 Blue cards have a different login than Gold and Delta, as I was the primary on the Blue cards, and my husband on the Gold and Delta. While I can see the Blue cards under his login, I have more options under my login; both the Blue have a transfer credit option, but only to each other due to the separate logins. I am not looking to mess with those yet, but hopefully a call to Amex will do what I want.
I tried to get all 4 cards under one login, but Amex said no. Not sure while as I am the only person on these cards!
