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Old 08-15-2014, 12:50 AM   #1
scott0482
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Credit Card Question

I just cancelled a credit card.
It had a $5000 limit and no rewards at all. I have had it for about 6 years.
I haven't used it at all in about 3 years.

My oldest card is from 2004
After cancelling the one card tonight, I logged into the website for this card, and got an instant $4000 limit increase. (Being that it was instant, I assume it was a soft inquiry, and it shouldn't affect anything)

About 2 months ago, Suntrust called me and convinced me to get a new MasterCard with them. They said they would give me that one, and close my existing Visa.
The Visa is still on my account, it doesn't appear that they closed it. I have had that card for about 5 years. (I honestly don't even know how to find out how long I had it)

So my question is. If I cancel the ST Visa, will I still show as being a card member since 2009 or whatever? Or since the new one is MC, will that not carry over?

I am thinking of canceling the ST Visa, and getting an AMEX Blue Cash 6%, 3% card.

I would undoubtedly get a higher limit on that than the ST Visa I am considering cancelling, which would raise my total limit.

Also cards stay on your history for 10 years. So how does that work? I mean, you still cancel it, so it brings down the age of your credit history, right?

Right now, I have 3 cards and a higher credit limit than I did 2 months ago. But I also have a new card and a canceled card recently.

I also am not planning on getting any kind of loan in the next 6 months. But honestly, I might in the next year.

Oh yeah, I also have a Target Red Card. Its about 2 years old.
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Old 08-15-2014, 05:50 AM   #2
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Your "Member Since" won't carry over... You are switching companies.

Cards will stay on your credit report for 7 years after the last activity. Sometimes longer if they have been closed and were in good standing at time of closing. I still have a car loan from the 90's on mine.

Your Beacon or FICO score is made up of several things. Number of accounts, number of accounts with balances, payment history, percentage of available credit used, debt load, high credit limit, type of credit, etc. Revolving accounts don't count as much as installment loans... Unless you don't pay them. Individual loans count better (usually) than joint accounts or "authorized user" accounts.

The people with the best credit scores are really those who don't need credit as they tend to pay everything off at the end of the month.
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Old 08-15-2014, 06:20 AM   #3
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Why do you want to cancel these cards instead of just leaving them open? Are there annual fees?

Blue Cash is a great card, but so is the new AmEx Everyday (if you use it for their categories).
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Old 08-15-2014, 08:25 AM   #4
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Why did you close it??? Closing credit card accounts will usually HURT your FICO score.
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Old 08-15-2014, 08:29 AM   #5
boostedisbetter
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You never close a credit card dude... You just don't use it...

The new AMEX cash back is awesome, it's 18 months 0%APR on purchases and Balance transfers with no annual fees.

Cash back as follows:

3% groceries
2% gas
1% everything else.
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Old 08-15-2014, 08:30 AM   #6
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AmEx shouldn't be your only card. Whatever route you go,make sure it's one without an annual fee. It doesn't sound like you spend enough to overcome the fee and take full advantage of the higher cash back rates.

A Captail One Quicksilver Rewards Visa is another good option. 1.5% cash back on everything with no annual fees.
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Old 08-15-2014, 08:33 AM   #7
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You never close a credit card dude... You just don't use it...
Depends. I've closed a few accousnt in the past few years on cards I never used. I still managed to pull a 799, 810 and 808 on my FICO report back in April when I started house hunting.

Not sure why everyone is so paranoid. Any initial dip will inveitably be recovered. It's not gone forever.
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Old 08-15-2014, 08:44 AM   #8
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Depends. I've closed a few accousnt in the past few years on cards I never used. I still managed to pull a 799, 810 and 808 on my FICO report back in April when I started house hunting.

Not sure why everyone is so paranoid. Any initial dip will inveitably be recovered. It's not gone forever.
I'm just saying unless there is an annual fee of course, there is no reason to close a credit card account.

Also the Chase SLATE card is a good option right now too. I agree though, not everyone takes AMEX so I have two that I use at all times and just transfer the balances when the introductory 0% period runs up.
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Old 08-15-2014, 09:27 AM   #9
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Depends. I've closed a few accousnt in the past few years on cards I never used. I still managed to pull a 799, 810 and 808 on my FICO report back in April when I started house hunting.

Not sure why everyone is so paranoid. Any initial dip will inveitably be recovered. It's not gone forever.
It's just a rule of thumb since it lowers your credit ratio and average age of accounts. If you're in the >800 club you can definitely trim back some cards. However, for people with lower credit scores I'd advise against it unless the card's killing you in fees.

I just checked my equifax and it's 810. Did you steal my identity?
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Old 08-15-2014, 09:40 AM   #10
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Did not read everything but...

NEVER close a credit card. Just pay it off and buy a tank of gas or something every few months and pay it off the next day or whatever.

Age of accounts, total available credit, total number of available credit lines, and available credit to debt ratio, are all important parts of your credit report.

JMO.
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Old 08-15-2014, 09:40 AM   #11
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Just keep your existing cards if there are no annual fees. Get a Chase Sapphire Preferred as your new card and be happy. Not everyone takes AMEX.

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Old 08-15-2014, 09:48 AM   #12
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I'm just saying unless there is an annual fee of course, there is no reason to close a credit card account
If I don't see a use for something I get rid of it. Keep life simple. People who cannot afford to close an account probably shouldn't have a credit card for every retail store, every airline or every hotel. Keep it simple from the start.


Quote:
Originally Posted by choxor View Post
It's just a rule of thumb since it lowers your credit ratio and average age of accounts. If you're in the >800 club you can definitely trim back some cards. However, for people with lower credit scores I'd advise against it unless the card's killing you in fees.

I just checked my equifax and it's 810. Did you steal my identity?
I don't disagree. Good credit score. I hope you can weather the temporary 2 point drop you're going to experience from getting that score!
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Old 08-15-2014, 09:52 AM   #13
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NEVER close a credit card.
That's a beta thing to say.
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Old 08-15-2014, 09:54 AM   #14
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If I don't see a use for something I get rid of it. Keep life simple. People who cannot afford to close an account probably shouldn't have a credit card for every retail store, every airline or every hotel. Keep it simple from the start.



I don't disagree. Good credit score. I hope you can weather the temporary 2 point drop you're going to experience from getting that score!
I use myfico. Credit score inquiries don't lower your score, only hard inquiries for new accounts.
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Old 08-15-2014, 10:06 AM   #15
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Never close it, just destroy it.
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Old 08-15-2014, 10:16 AM   #16
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I use myfico. Credit score inquiries don't lower your score, only hard inquiries for new accounts.
Mine was a hard inquiry for a mortgage.
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Old 08-15-2014, 10:17 AM   #17
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Never close it, just destroy it.
Says the guy who has to take a Greyhound bus when he travels.
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Old 08-15-2014, 10:26 AM   #18
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Never "close" a card... Let it expire or shred the new one.
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Old 08-15-2014, 10:27 AM   #19
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It's ok to close credit cards. It does initially make a small hit on your score but then it recovers. You should NOT close your OLDEST CCs. That long history helps your credit score. Before I bought my house I had about 10 credit cards. I would open and close 2 cards per year on average to take advantage of rewards and sign up bonuses. When they ran my credit for the home loan it showed an average score of about 805-810.

Right now I'm down to 6 credit cards and I only really use 3 of them. Amex when I know I am keeping something long term to take advantage of their warranty protection. Citi Forward for food, movies, bookstores (read:Amazon). Switch between Chase Freedom and others to take advantage of the revolving categories.

So yes. Close the card if it's not the oldest .

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Old 08-15-2014, 10:34 AM   #20
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Never "close" a card... Let it expire or shred the new one.
I don't think cards expire. I mean... they have an expiration date... but they seem to automatically renew.
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