How Negative To Cancel Card Within First Year?

[BronzeTrader]

Some of the cards, such as AmEx SPG card, has no AF fees the first year.  I just wonder how bad it is going to be if you close the card after 10 months, after you receive the signon bonus.

Do not intend to do that.  But just want to know. 

[tcbofade]

How bad is WHAT going to be?

The only two negatives that I see are that you'll shorten your average age of accounts, and you won't be able to "reapply" for the same card for x months, depending on the issuer.

[CreditCuriosity]

Already took the AAoA and Inq so nothing bad really.. Might aggrevate the lender a bit, but as long as you kept it for close to a year you gave it a shot and should still be in their good graces.    Card will keep reporting on your report for 10 years

[Anonymous]

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@tcbofade wrote:

How bad is WHAT going to be?

The only two negatives that I see are that you'll shorten your average age of accounts, and you won't be able to "reapply" for the same card for x months, depending on the issuer.

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The card will still report for many years after it's closed. Even if it didn't, the card is less than a year old, so the negative impact on AAoA has already been done. 

[HeavenOhio]

I closed cards this year that were seven and six months old. My account age stats would improve noticeably if they dropped off my reports tomorrow.

I closed them because they were retail cards that were a bad idea in the first place. It became apparent that I was going to have to go out of my way to find ways to use them and keep them open. And both companies were somewhat of a pain to deal with.

[MrDisco99]

Amex has language in their ToS now that includes cancelling the card within the first year as potential justification for adverse action.

I plan to let mine turn a year old.  They still refund the AF if you cancel within 30 days.

[AverageJoesCredit]

Credit One, go for it, others , always your peragative I just wouldnt make it a habit with Amex or Chase they're bound to temember

[BronzeTrader]

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@MrDisco99 wrote:

Amex has language in their ToS now that includes cancelling the card within the first year as potential justification for adverse action.

I plan to let mine turn a year old.  They still refund the AF if you cancel within 30 days.

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This is what I was thinking. It may be a good idea to keep the card for a year or two.  Pay only one AF and the lender won't block you.  Or close it gracefully.  AAOA and inquiry are not the concerns here.

[HeavenOhio]

I think it depends on what you're doing. If your intention is to bonus-chase or churn, you don't want to draw attention to yourself. And you want to be able to get cards from the same lender in the future.

If you're not in the habit of aquiring cards and closing them, I wouldn't worry. If a card isn't working out, close it.

And of course, one should feel free to close cards that aren't "keepers" to begin with unless there's an appropriate upgrade or combination option.

[Meanmchine]

ditto