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buckyscredit
Posts: 1
Registered: ‎02-24-2013
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question about closing a credit card

I currently have a few credit cards. All of which have zero balance. But I only use 2 credit cards out of all of them. Would it hurt to close the un used ones? One has a annual member fee of 35 dollars. I pay it every year and have never used the card.

 

Any help is appreciated,

Steve

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BrokaToe
Posts: 726
Registered: ‎05-12-2012
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Re: question about closing a credit card

[ Edited ]

I believe it would be fine to close the card with the AF especially since you do not use it. Any closed cards will still report positive on your CR for the next 10 years. If the other card doesn't have an AF, then it doesn't hurt to keep it open. I suppose it all depends on what their credit line is. If they are large credit lines, then it could effect your utilization by closing them. Hope this helps.

 

Oh, and Welcome to the Forum!


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LS2982
Posts: 15,434
Registered: ‎04-09-2011
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Re: question about closing a credit card

Depends on the situation. Can you list what cards you have, their AF's and when they were open?



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agent_bob
Posts: 49
Registered: ‎02-22-2013
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Re: question about closing a credit card

you could also try switching the card with an AF to one without. In the long run it would be better to just sock drawer it too and just keep it for AAoA. it's all a matter of personal preference!

& as brokatoe has said welcome!

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dddewdrop
Posts: 1,060
Registered: ‎02-06-2013
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Re: question about closing a credit card

If you are holding a balance on any of your cards, it will hurt you to close that card. Your annual fee isnt that much and I suspect if you call them and say you are thinking of closing the account they may waive the fee. If you never have a balance on any of the cards then it wont really hurt your score to clr lose that one. if you do have a balance it will raise your util percent because you will have a lower CL overall and that will hurt your score. 

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jritch
Posts: 44
Registered: ‎01-23-2013
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Re: question about closing a credit card

[ Edited ]
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bs6054
Posts: 1,673
Registered: ‎11-11-2012
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Re: question about closing a credit card


dddewdrop wrote:

If you are holding a balance on any of your cards, it will hurt you to close that card. Your annual fee isnt that much and I suspect if you call them and say you are thinking of closing the account they may waive the fee. If you never have a balance on any of the cards then it wont really hurt your score to clr lose that one. if you do have a balance it will raise your util percent because you will have a lower CL overall and that will hurt your score. 


Right, but the annual fee is real money.  What is the actual impact of a higher util percent?   Nothing unless and until you apply for something, and you can always try to reduce util before app time.

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webhopper
Posts: 7,225
Registered: ‎09-16-2011
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Re: question about closing a credit card

Closing a CC (credit cards) does not lower your FICO scores in and of itself. When deciding to close a CC there are two important things to consider. In the short-term, closing a CC can have an adverse affect on your UTIL percentage calculations and this in itself can definitely lower your scores. In the long-term, a closed CC in good standing (nothing derogatory reporting) with a $0 balance will generally be deleted from your CRs (credit reports) after 10 years. Once this account is deleted, you lose the history and age and this might lower your scores.

For More information on how closing credit cards can impact your FICO score, please check out the following link: Closing Credit Cards.


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LS2982
Posts: 15,434
Registered: ‎04-09-2011
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Re: question about closing a credit card

IMO if the card does not have an AF there really isnt a reason to close it. Get that positive history even if you have to charge a pack of gum on it every now and then it's a free TL pretty much.




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Wolf3
Posts: 3,197
Registered: ‎01-24-2010
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Re: question about closing a credit card


buckyscredit wrote:

I currently have a few credit cards. All of which have zero balance. But I only use 2 credit cards out of all of them. Would it hurt to close the un used ones? One has a annual member fee of 35 dollars. I pay it every year and have never used the card.

 

Any help is appreciated,

Steve


Definitely close the AF card.  I think it is good to have a 3rd card for backup, in case you can't use the other 2 ( someone steals your wallet and you may be without CC for a few days).    Closing cards doesn't hurt assuming you have sufficient CL.


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