When to close out a credit card

[dpittsmd1985]

I have two First Premier cards.  I have had them for more than 8 years but the CL is very low (450 and 400)  and they also charge a 7.00 monthly "member" fee.  I am trying to get my score up as high as possible by July (reaching for the 720-730 range)

I don't use the cards and I have a total of 7 CCs and 1 store credit card.  I don't want my score to drop by deleting a couple of cards that I have had for a long time but I don't want to have my score adversly affected for having a lot of cards, especially 2 of which have worthless CLs and charge a montly fee - even with zero balance.  I have by outstanding balances down to zero on all cards as of 3/15 and the one that I use for recurring charges- it cycles so that I pay the OB before the due date.

I need suggestions pleeeeaaassseee 

[bs6054]

---

@dpittsmd1985 wrote:

I have two First Premier cards.  I have had them for more than 8 years but the CL is very low (450 and 400)  and they also charge a 7.00 monthly "member" fee.  I am trying to get my score up as high as possible by July (reaching for the 720-730 range)

I don't use the cards and I have a total of 7 CCs and 1 store credit card.  I don't want my score to drop by deleting a couple of cards that I have had for a long time but I don't want to have my score adversly affected for having a lot of cards, especially 2 of which have worthless CLs and charge a montly fee - even with zero balance.  I have by outstanding balances down to zero on all cards as of 3/15 and the one that I use for recurring charges- it cycles so that I pay the OB before the due date.

I need suggestions pleeeeaaassseee 

---

The simple suggestion, get rid of them!   No need to pay those fees unless these were your only credit cards, and clearly they are not.  (And if they were, we would tell you to get better secured ones from BoA or Capital One).

Re score drop: closed accounts stay on your record, and contribute to your AAoA (average age of accounts) for about 10 years, so closing doesn't matter on that front.

Where some advise against closing is because of utilization, total balance/total credit, and closing a card reduces total credit.   In your case, you have no outstanding balance, and the credit contribution from these two cards is very small.

So it's really something that requires little thought, close them ASAP.

[PSouz]

I agree, I would close them

[NJTurnpike]

Close them this very second! you've had them for 8 years! HOLY COW! $7x12x8x2=$1344 in monthly membership fees + 8 years of annual fees! call them this very second and close them.

[09Lexie]

Close them and make sure to check your statement after you close them to make sure there are no outstanding fees.

[boomhower]

Close them and your score will likely go up for now.  You will keep the age for another ten years.  You'll likely get a boost in score from fewer cards reporting a balance.

[enharu]

if they charge an annual fee, close it out right away. otherwise, pay it off, and let the card close itself from inactivity. you get to milk a few more years of account age out of it for what it's worth.

[LS2982]

Wow....

Axe both of them ASAP!!! Thats a crazy amount of fees.

[enharu]

i would say apply for a secured card from BofA or Wells Fargo, or check out capitalone unsecured cards. You can probably also get an unsecured card from Barclays. Try to find out which lenders use TU since that's your strongest.

Get other cards, then close out these cards with fees right away.

[sarkell]

Close them. I'm in the process of every 6 months closing one of my lower limit less useful cards now that I have gotten some prime cards trying to get down to 8 cards. 4 cc/4 store cards. That way to affect aaoa less. None have fees except c1s which I can get waived via eo. My goal is to have less cards with higher credit limits.