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need EXPRT ADVICE FROM Cmmnty! DEAD weight cr crds w/low limt/high fees; close or keep?
Serious delima here, I need your guys expert opinions and advice. Over the past 2 years I have raised my score from 560 to 660. I did this by having collection accounts deleted, and as my score increased I was able to get a First Premier Card with a $250 credit limit, 21% intrest rate and an annual fee. I know this is a horrible card, however, my strategy was to have at least some credit utilization keeping it below 20% of limit in order to raise my score. My score raised and I got another low limit card, this time $500 limit for the same strategy. Again it worked and I was eventually able to get approved for 3 more cards over the next year with limits of $2000 and one with a $3000 limit. MY score was finally headed up and up. Unfortunately I maxed these cards out; yes I know, bad, and yes as expected my score dropped back down like 60 pts due to high utilization. I decided to get a $10,000 loan to pay off my cards and keep the utilization under 27%. I am hoping my score will go back up in the comming months. My delima now is that I am afraid that I have too many open credit card accounts, plus now the loan. I want to close the first two cards I got with the low limit high fees, but I've heard closing credit card accounts will lower your score a lot. My plan is to close those two accounts and once my score goes up to around 700, hopefully within 6-7 months, I can apply for a card with a high credit limit of around $10,000 and keep it below 19% utilization. My goal is to have my score above 720 within one year so I can buy a house at a good intrest rate. What do ya'll think I should do about these low limit high fee cards? Is 6 credit cards too many? How much of a hit will my score take and how long will it take to recover if I close those accounts? I know I've talked forever, but hopefully the community can help me with this delima. Thank you guys in advance.

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Yes, I would close the low limit/high fee card(s), they have live long pass its usefulness... No, 6 new credit cards plus one loan aren't too many in two plus years but it's getting there tho, especially if you had incur high number of inquiries in the process... How much will it lower your score when you close it? No one can tell you with any certainty, but longer you keep them? more it might hurt your scores later, because it affects your age of credit... 

However, You might have bigger issues than that, your scores is artificial, it dose not truly reflect your spending habit and your ability to manage your credit. You keep on getting new lines of credit to cover your exist line of credit, just to keep the utilizations low, so you can have better scores. If you keep on snowballing your debt? it will eventfully roll you under, and any potential lenders will see that and rise a big red flag. Besides, when you apply for a mortgage? They look at your debt to income ratio and not so much of debt to credit ratio (credit utilization). Debt is debt to them, they don't really care whether your have one card with 80% utilization or 10 cards with 8%... I would try to get my debt and spending under control, actually paying them down and off if I can, and not just move them to different areas of my plate like I do with my vegetables when I was kid.

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First off,  PAY OFF ALL YOUR CREDIT CARDS and any LOANS you have!   NEVER KEEP Any BALANCE on a Credit Card,  NEVER EVER!

There is no need to carry a Balance Every.  You need to Get Control on your spending.  You are buying things you DON"T NEEED!

Then and only then,  save Cash for eveything you purchase.   Credit Cards are not to Live on they are a TOOL only so when you want to buy something big you don't need to carry all that cash with you.   

Once you have your Spending under control and have paid off your Credit Cards and Loans  then come back and ask what you can do.

Hope that helps

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