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Regular Contributor
money_talks
Posts: 235
Registered: ‎07-02-2013

Holding on to a shark card forever?

What would be the effects of holding on to a shark card forever? I have a FP card that was my 1st rebuilder card 2 years ago. I'm leaning heavily to closing it soon. But I've been wondering what if I decided to keep it as long as I had credit. Here are some pros and cons I can think of.

 

Pros of keeping open:

-Oldest CC would be open on my CR, good for AAoA

-Oldest CC positive payment history

 

Cons of keeping open:

-Fees (MF=6.5, YF=45)

10 years=Total Fees $1,230 or

20 years=Total Fees $2,460

-FP being on CR might spook future lenders

-Not able to achieve highest potential FICO due to having FP (does FICO even care if this is FP or Chase/BOA etc)?

-No guarantee that security deposit would be returned as long as it remains open

 

Any others?

Regular Contributor
Rikku
Posts: 200
Registered: ‎09-21-2013

Re: Holding on to a shark card forever?

I would close it and save the money - those fees will really add up, as you've shown. The closed account will stay on your credit report for about ten years, and by then you won't need this account for your AAoA. I'd close it and move on!
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Senior Contributor
myjourney
Posts: 25,246
Registered: ‎02-07-2013

Re: Holding on to a shark card forever?

I'm a firm believer keep cards open as long as possible unless they have AF's and monthly fees

So that being said when an account cost you money to keep the card and its usefulness has been served 

Get rid of it

 

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Valued Contributor
FinStar
Posts: 5,156
Registered: ‎10-21-2012

Re: Holding on to a shark card forever?


myjourney wrote:

I'm a firm believer keep cards open as long as possible unless they have AF's and monthly fees

So that being said when an account cost you money to keep the card and its usefulness has been served 

Get rid of it

 


+1

 

The Cons are stacked higher than the Pros - I would close it.  Much better non-AF products out there, and once closed, the postive history remains for ~10 years or so.

Established Member
madnutz
Posts: 48
Registered: ‎11-08-2010

Re: Holding on to a shark card forever?

close that mofo

Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009

Re: Holding on to a shark card forever?


money_talks wrote:

What would be the effects of holding on to a shark card forever? I have a FP card that was my 1st rebuilder card 2 years ago. I'm leaning heavily to closing it soon. But I've been wondering what if I decided to keep it as long as I had credit. Here are some pros and cons I can think of.

 

Pros of keeping open:

-Oldest CC would be open on my CR, good for AAoA

-Oldest CC positive payment history

 

Cons of keeping open:

-Fees (MF=6.5, YF=45)

10 years=Total Fees $1,230 or

20 years=Total Fees $2,460

-FP being on CR might spook future lenders

-Not able to achieve highest potential FICO due to having FP (does FICO even care if this is FP or Chase/BOA etc)?

-No guarantee that security deposit would be returned as long as it remains open

 

Any others?


I don't think FICO cares about FP.   But as others have said, close the card.  The pros don't even come close to outweighing the cons.  Even if the only con were the monthly and annual fees, you shouuld close it.   


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Super Contributor
enharu
Posts: 6,889
Registered: ‎02-27-2013

Re: Holding on to a shark card forever?

Like everyone else said, you should close it. Really not worth it at all....
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sccredit
Posts: 770
Registered: ‎09-14-2012

Re: Holding on to a shark card forever?


myjourney wrote:

I'm a firm believer keep cards open as long as possible unless they have AF's and monthly fees

So that being said when an account cost you money to keep the card and its usefulness has been served 

Get rid of it

 


100% agreed.  You'll have the AAoA benefit for 10 years as a closed card so keeping it open is not worth the fees.  The card served its purpose, time to move on!

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Valued Contributor
SunriseEarth
Posts: 3,051
Registered: ‎08-12-2013

Re: Holding on to a shark card forever?


FinStar wrote:

myjourney wrote:

I'm a firm believer keep cards open as long as possible unless they have AF's and monthly fees

So that being said when an account cost you money to keep the card and its usefulness has been served 

Get rid of it

 


+1

 

The Cons are stacked higher than the Pros - I would close it.  Much better non-AF products out there, and once closed, the postive history remains for ~10 years or so.


+2

 

I'd go further and say there's absolutely no positive reason to keep the card open.  Not wanting your AAoA to dip 10 years down the road isn't worth the fees.




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compassion101
Posts: 570
Registered: ‎06-06-2012

Re: Holding on to a shark card forever?

I assume you have already got the usefulness from it and have moved on to better cards. If so, close it and save the money. Like the poster mentioned above, it will stay on your credit report for ten years usually, so any negatifve effect won't be felt until then and by then it will be very minimal if you have continued other accounts for length history.

 

What's FP stand for?

 

 


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