I’m trying to give simple guidelines. Imagine having too many revolving acc’ts. If you get feedback about top reasons for adverse action, then you just close a few or cut the limits back (this is quite rare to have too many, but possible). Total revolving debt is important; potential debt used wisely is just about always good.
Imagine having no revolving debt because you closed everything. You can’t undo that, and if you start anew… ugh.
Have some reasonable am’t of revolving credit available to you. Don’t close them. Rule of thumb. Exceptions exist. Easier to adjust to the exceptions as they’re pointed out: Just scale the revolving limits or total number of cards back a bit. Otherwise, have them acc’ts open and cut the cards up.
Your Costco Amex will automatically be converted into a Citi Costco Visa at some point. I think the delay in Citi buying the existing book of business from Amex is what is delaying the transition to Visa until June or later.
You can product change the Costco Amex into an Amex Blue right now I think, and maintain your length of credit. You can certainly apply for the Citi Doublecash, but that is a Mastercard, and Costco is moving from taking Amex to taking Visa. So you won’t be able to use it at Costco.
You WILL be able to use any Visa at Costco (just like you can use any Amex today). The best card for use at Costco today is the Fidelity Investment Rewards Amex, which is a 2% cash back card. In a stroke of good timing that card is being converted into a Visa shortly as Fidelity is moving their cards from Bank of America to US Bank, so it will continue to be one of the best cards. Also available in 2% cash back as a Visa is the Capital One Spark business card. Capital One Venture Visa is a 2% back if redeemed on Travel card as well. Beyond those there are a bunch of cards @ 1.5% - 1.75% cash back. Those all beat the Costco credit card itself except at the Costco gas pumps.
They want you as a customer. “Here, use this card. If you do, we know you want to be credit card active again, so we’ll fire that account up for you.”
With the acc’t closed, they can avoid dealing with you, sending you mail, notices, and notifying you of breaches, etc. You are an expense they don’t want (wisely) unless you’re using the card/account.