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Credit Card cancellation or wait?
Hi Guys,

This is my situation: Currently, I have 5 credit cards:

2 from First Premier Bank (1. $400 CL 1 y/o 2. $550 CL 2 y/o) current balance $0 on both cards
1 from FingerHut ($600 CL almost 1 y/o) current balance $0
1 from AMEX ($1,000 CL opened feb/16) current balance $200
1 from Discover ($500 CL opened this week) current balance $51

Also I have loans:

1. $32,000 in student loans (which are frozen for a year due to my actual low income of $714)

2. $1,011 (a personal loan that I got last week to pay some debts)

I want to know if this is a good time to close my 2 first premier bank secured credit cards or should I wait a little longer?
To be honest, since I got approved for the AMEX and Discover, I don't want to use the first premier cards due to their high interest rate (36%) and their abusive annual fees, also I'm paying like, $15 monthly between those card just to have them in my wallet.

My current scores are: TU: 620 and EQ: 643

I want to rectify all my past mistakes and get a better credit score/history. I know that I have a looooong run but I want to do it right.

So, what should I do?
Cancel the First Premier cards or wait until the newer ones (AMEX and Discover) be at least 1 year old? (that was an advice from a co worker)

Thanks in advance

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If I am in your shoes? I won't hesitate for a second before I close those two FP cards... No reason to pay their annual/monthly fees when you got two other solid cards. Close them and get your deposit back, use that to pay off your personal loan or your credit card balances, carrying less debt are always better for your financial healthi, generally better financial health leads to better credit health, it makes even less sense when you got cash tied up in not so great secured credit cards, while you paying interest on your loan and paying high fees to use your own money... Your score might be dinged for less available credit/higher utilizations, one way to counte that? ask for credit increase on your AmEx, you can ask for upto 3X your current limit (1k to 3k) they might counter with lower amount, if you get denied? You can ask again on 91 day... With Discover you can ask CLI on 61 day from when it's approved, only thing might hold you back on CLI is your limited income, other way is to apply for 1~2 more credit cards, but might be ideal due to your income... Your age/average age of credit won't change in FICO score models, they uses both open and closed accounts for age of credit, closed accounts in good standing can remain in your credit reports for upto 10 years, so your age of credit won't change in next 10 years just because you close them now..... Best of luck on your credit journey.

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Thank you so much. Tomorrow, first thing in the morning I'll cancel those FP cards.

Thanks again!

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Hold Them

A percentage of your scredit score includes your average age of accounts. If you are not going to use your older cards, sock drawer them and let them age until you feel you no really longer want to hold onto them. The longer you hold onto them the better. Your score will increase. If the issuer threatens to cancel the accounts you can either put something on them, pay them in full and start the inactivty clock over again or close the accounts before the issuer does.

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