Closing card + transferring LOC vs. Closing card+ consolidating LOCs

Discussion in 'Other Credit Card Programs' started by PointHoarder, Jan 31, 2012.  |  Print Topic

  1. PointHoarder
    Original Member

    PointHoarder Silver Member

    Messages:
    896
    Likes Received:
    795
    Status Points:
    795
    Hoping someone can clarify a little point for me.

    I just closed a Chase card before the annual fee was due, but instead of simply transferring the line-of-credit (LOC) to another new no-fee card, as usually recommended, I was offered the opportunity to consolidate it with another Chase card that I have. Since I just recently did a mini app-o-rama, I didn't want to have another pull (the CSR made it sound as though I'd need to get approved for the no-fee card).
    End result is that I have only one Chase card now, but with double the LOC.
    I'm having second thoughts now.

    Should I have still asked to simply get a new no-fee card and have the closed card's LOC assigned to it to keep the age of the card (open less than one year) and have the additional account on my credit report? Or does the fact that the LOC was merged with the other card's make it a moot point and have no effect for now (since I'll still be able to use that LOC for future apps with Chase, and the account will still be listed for the next 7 years in my credit report)?
     
    LarryInNYC likes this.
  2. LarryInNYC

    LarryInNYC Gold Member

    Messages:
    1,384
    Likes Received:
    2,797
    Status Points:
    1,445
    I have the same question since I have a couple of old, pre-mileage, no-longer-used Chase cards I'll want to cancel.

    I do recall reading during the economic crisis that lenders were looking for opportunities to reduce peoples total available credit. I don't know if that's still true. If so, the one thing you wouldn't want to happen is to have that credit disappear into thin air.
     
  3. MDDCFlyer

    MDDCFlyer Silver Member

    Messages:
    363
    Likes Received:
    516
    Status Points:
    595
    It is all depends on your future plans with Chase. Chase pays very close attention to the TOTAL amount of credit you have with them, rather than the number of cards you have open with them.
    Another card would have meant another credit pull (probably), but it would have kept the credit history intact.
    It is all depends on what you want for the future. Those dings on the credit are usually very small in the long run if you keep your finance in order. And, now, when you apply to another Chase card you have some credit line to play with.
     
    PointHoarder likes this.
  4. PointHoarder
    Original Member

    PointHoarder Silver Member

    Messages:
    896
    Likes Received:
    795
    Status Points:
    795
    Thanks. I'm likely going to apply for more cards from Chase in the future. So I wanted to make sure that credit line did not just disappear. I wasn't quite sure which course was the better one to follow, if viewed from the perspective of an issuer other than Chase. I guess it's a minor point, but was curious nonetheless.

    I'm also curious to know what people's experience has been when simply switching to a no-fee card when the annual fee hits with Chase. Has anyone been hit with a hard pull when doing that?
     
  5. misterbwong

    misterbwong Silver Member

    Messages:
    325
    Likes Received:
    478
    Status Points:
    520
    According to TPG and a Bankrate interview with the FICO CEO, they count the average age of the account even if it's closed. It might be better that you consolidated your LOC and avoided the extra hit.

    Link for info
     
    PointHoarder likes this.

Share This Page