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quizzer
Posts: 72
Registered: ‎03-10-2008
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Advice needed on closing a credit card

I'm planning to close my BOA Amex card since am not using this since the last 3 months. The reason being I have another Amex card that has better rewards.

 

This is NOT my oldest card too.

 

What happens if I close this Card? Can the history be transferred to another BOA credit card even though this another card (BOA MC) is older than the BOA Amex card?

 

My utilization will be less even if this BOA amex card is closed.

 

Please advise.

 

Thanks

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Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007
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Re: Advice needed on closing a credit card

American Express is the only CCC that transfers age from one card to another. Your surviving BofA card will only show its opening date.

 

Out of curiosity, why are you closing it? There's not a fee, is there?

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Senior Contributor
Wolf3
Posts: 3,198
Registered: ‎01-24-2010
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Re: Advice needed on closing a credit card

 


quizzer wrote:

I'm planning to close my BOA Amex card since am not using this since the last 3 months. The reason being I have another Amex card that has better rewards.

 

This is NOT my oldest card too.

 

What happens if I close this Card? Can the history be transferred to another BOA credit card even though this another card (BOA MC) is older than the BOA Amex card?

 

My utilization will be less even if this BOA amex card is closed.

 

Please advise.

 

Thanks


 

Credit History does not transfer to another CC.   The BofA Amex history will stay on your report for 10 years, so your AAoA will not be affected for 10 years. 

 

 

New Contributor
quizzer
Posts: 72
Registered: ‎03-10-2008
0

Re: Advice needed on closing a credit card

What are the pros and cons of these 2 options?

 

1. Keeping the BOA Amex card open with ZERO balance and no transactions whatsover? Moreover this card is expiring soon (9/30) and will be getting replacement card. What will happen if i dont activate the new card?

 

2. Closing

 

Thanks

Senior Contributor
Wolf3
Posts: 3,198
Registered: ‎01-24-2010
0

Re: Advice needed on closing a credit card

 


quizzer wrote:

What are the pros and cons of these 2 options?

 

1. Keeping the BOA Amex card open with ZERO balance and no transactions whatsover? Moreover this card is expiring soon (9/30) and will be getting replacement card. What will happen if i dont activate the new card?

The expiration of a card does not close the account.   Neither does not activating a new card.

 

2. Closing

 

Thanks


If you don't use it, BofA will likely close it anyway.    Keeping it open for longer is slightly better for you credit history in the future (10 years plus)

 

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haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007
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Re: Advice needed on closing a credit card

If you ever do allow balances to report on your CC's, it generally helps your scores to have several open CC's in addition. One of the ways that the scoring formula can ding you is "too many accounts with balances." If you only have 4 cards, and 2 report balances, you'll probably get the ding. But 2 out of 5 probably won't.

 

If your history is relatively short, and/ or your file is "thin" (not many accounts), it helps to have multiple TL's (tradelines; accounts) reporting every month, building history.

 

If you have negatives in the past that are still showing on your reports, having several open accounts now posting clean history every month helps "dilute" the effect of the negatives. So instead of 3 problem accounts out of 5, it becomes 3 out of six.

 

These are all basically scoring quirks, I realize. But many people here are working on their scores as well as on their overall credit picture, so I thought I'd mention these.

 

It's not that hard to keep an individual account going with minimal hassle. Put a recurring bill on that CC --cell phone, cable, bridge tolls, etc --and then pay the CC once a month instead of the cell phone company, etc.

 

But if it's too much of a hassle, do what makes your life easier. At least you're closing one of two cards from the same bank. That keeps you diversified with whatever banks your other cards are from. There's nothing like having four cards from the same bank, and nothing else, and then having the bank turn on you. It's not pretty.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007

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