So I recently paid all (8) of my credit card accounts I’m 22 and through the last couple of years I fell into the credit card hole. I decided to get a debt consolidation loan (only other loan/debt) I will have, to pay them all off.
Luckily my credit utilization has been the only thing really hurting my score I have never missed a payment. And have no collections or charge offs. Just have never been able to get a hold of paying my balances off.
My question is I have a few cards that some people would consider “bad” cards or “useless” like my credit one card (I don’t feel to bad about this one) I have heard other things tho. But also like (concora, and Merrick bank) these cards seem to serve no purpose. So what I’m wondering though since I have such low limits will closing these be in my favor my total available credit would go from $3750 to $2550. Does this have any factor to getting approved for loans or cards in the future?
Bad cards vs credit availability?
byu/topshottajosh inCreditCards
Posted by topshottajosh
1 Comment
Man congrats on getting out of that hole, that’s huge at 22. I’d actually keep those cards open even if they’re not great – losing that $1200 in available credit could hurt your utilization ratios down the road when you start using cards again. Just sock drawer them and maybe use one every few months for something small to keep them active.
The extra available credit will probably help more than the “bad card” stigma will hurt you, especially since you’re rebuilding and proving you can manage the debt responsably now.