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Worth it to close one of my credit cards?

New Visitor

Worth it to close one of my credit cards?

Hello, first time poster here! I have been wondering about my question for awhile, and figured this would be the best place to ask. Currently I have 2 credit cards. One I got in 2009, it was my first card so I didn't end up picking the best one since I was wasn't as informed (IE no rewards, and has a 40 dollar annual fee). I recently got a different card in April of this year. 

 

The question I have, since these are basically my only  2 things on my credit history (I'm in college), would it be bad to cancel my 4 year old card so I don't get stuck with a $40 fee each year. Either way I am going to call and try and see if they will waive it, but if not I was thinking about just canceling it. Both cards I keep at low balances, the first card has a $500 limit and my most recent one has $1500. I always pay each off each month if I use it and don't carry any balances month to month.

 

Thanks for any answers/advice, and I apologize if this isn't the right section to ask in!

Message 1 of 8
7 REPLIES
Mega Contributor

Re: Worth it to close one of my credit cards?

Welcome to the forums.  If they won't waive the annual fee it will still be a positive TL for ten years as long as it's paid off in good standing when closed. 

Discover IT $17k / US Bank Ace (VSig) $13.5K / US Bank Cash+ (VSig) $13.5k
Sam's Mastercard $13.5k / Walmart Mastercard $10k / Blispay $7.5k PayPal Ex MC $6.1k
CareCredit 5k / Husq $5k / Cap1 QS $4.5k / Barclay Ring $4.85k / Citi DC (WMC) $7.1k
Gardening Date 7/01/16 / MyFico 08: EQ 801 / TU 777 / EX 771 / 06/08/17
Message 2 of 8
Highlighted
New Contributor

Re: Worth it to close one of my credit cards?

Agree with cold.

 

If they won't waive the annual fee, then it will still show as a positive TL on your reports for 10 years.  Completely up to you if you want to close it, but it won't hurt you in any way since you don't carry a balance on the other card (won't affect utility in a negative way).

 

Welcome to the forum!  



Last app: 10/4/14
In the garden until Winter of 2016
Message 3 of 8
Moderator

Re: Worth it to close one of my credit cards?


coldnmn wrote:

Welcome to the forums.  If they won't waive the annual fee it will still be a positive TL for ten years as long as it's paid off in good standing when closed. 


+1

 

However, the OP will have a drop in UTIL.  So be careful with the balance on the newer card (sounds like you're already doing that, tho)



Start: 619 (TU08, 9/2013) | Current: 791 (TU08, 10/26/17)
Sam's Club MC $25000 | Marvel MC $25000 | Macy's AMEX $25000 | AMEX BCE $20400 | Discover IT $20000 | Macy's Store $20000 | Cap 1 QS WMC $17250 | BoA BBR #1 $17200 | JCP $15000 | Citi DC $12600 | Freedom VS $12000 | BofA BBR #2 $11800 | Disney VS $11500 | Care Credit MC $11200 | Cash+ VS $10500 | CashForward WMC $10000 | Barclay Rewards WMC $10000 | WCU Visa $10000 | Amazon Store $8000 | Blispay $7500 | Sony Card $4250 | Target MC $4000 | Costco Anywhere $3200 | ~~Gardening Since 11/2/17
Message 4 of 8
Super Contributor

Re: Worth it to close one of my credit cards?


TS91 wrote:

Hello, first time poster here! I have been wondering about my question for awhile, and figured this would be the best place to ask. Currently I have 2 credit cards. One I got in 2009, it was my first card so I didn't end up picking the best one since I was wasn't as informed (IE no rewards, and has a 40 dollar annual fee). I recently got a different card in April of this year. 

 

The question I have, since these are basically my only  2 things on my credit history (I'm in college), would it be bad to cancel my 4 year old card so I don't get stuck with a $40 fee each year. Either way I am going to call and try and see if they will waive it, but if not I was thinking about just canceling it. Both cards I keep at low balances, the first card has a $500 limit and my most recent one has $1500. I always pay each off each month if I use it and don't carry any balances month to month.

 

Thanks for any answers/advice, and I apologize if this isn't the right section to ask in!


The card with AF and no rewards before canceling it can you please share who the lender is ....There may be other options than closing?

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Message 5 of 8
Senior Contributor

Re: Worth it to close one of my credit cards?

Worth is always highly subjective.  Have you read the sticky in this subforum on closing accounts?

http://ficoforums.myfico.com/t5/Credit-Cards/Closing-Credit-Cards/td-p/347190

 


TS91 wrote:

Both cards I keep at low balances, the first card has a $500 limit and my most recent one has $1500. I always pay each off each month if I use it and don't carry any balances month to month.

 


Unless you're paying off the balances prior to statement close then balances are reporting.  Calculate the change in utilization before you make any decisions.  You're losing 25% of your total revolving limits by closing it.

Message 6 of 8
Frequent Contributor

Re: Worth it to close one of my credit cards?

Depending on which lender it is you may be able to do a product change to a card with a good rewards structure and no annual fee, and possibly even get a credit limit increase. Which card is it?



AMEX PRG NPSL, FIDELITY REWARDS 50K, CHASE SAPPHIRE RESERVE 27K, AMEX DELTA SKYMIES GOLD 25K, CITI DIAMOND PREFERRED 22K, CHASE FREEDOM 20K, CITI DOUBLE CASH 15.5K, BARCLAYCARD REWARDS MASTERCARD 15K, CHASE MARRIOTT PREMIER 5K, CAPITAL ONE SONY CARD 5.75K, CAPITAL ONE QUICKSILVER 3.5K, AMAZON STORECARD 6K, VICTORIAS SECRET 2650, EXPRESS NEXT 1850,Gardening2/17/17.
Message 7 of 8
Valued Contributor

Re: Worth it to close one of my credit cards?


myjourney wrote:

TS91 wrote:

Hello, first time poster here! I have been wondering about my question for awhile, and figured this would be the best place to ask. Currently I have 2 credit cards. One I got in 2009, it was my first card so I didn't end up picking the best one since I was wasn't as informed (IE no rewards, and has a 40 dollar annual fee). I recently got a different card in April of this year. 

 

The question I have, since these are basically my only  2 things on my credit history (I'm in college), would it be bad to cancel my 4 year old card so I don't get stuck with a $40 fee each year. Either way I am going to call and try and see if they will waive it, but if not I was thinking about just canceling it. Both cards I keep at low balances, the first card has a $500 limit and my most recent one has $1500. I always pay each off each month if I use it and don't carry any balances month to month.

 

Thanks for any answers/advice, and I apologize if this isn't the right section to ask in!


The card with AF and no rewards before canceling it can you please share who the lender is ....There may be other options than closing?


Agreed, also can you not PC to another card with same lender? Call the EO line if that is posible. Tell them that you have acct since '09 and see what they can do for you.

2013 Approvals: Discover IT - 3/1, Amex BCE - 3/4, CSP - 5/4, Barclay Ring - 6/12, BoA Privileges Cash - 6/27, Citi TY Preferred - 8/6, OCCU Duck - 11/4, USBank (Cash+) - 11/22, Wells Fargo - 12/21, Nordstrom - 12/29

12/19/2013, $100k+ Available Credit. Total Util: 0-1%
Message 8 of 8