I canceled 2 credit cards, good move?

[Anonymous]

I know normally canceling a credit card is a bad idea, but the two I canceled where from 1st Savings and 1st Premier.  First Savings and First Premier are rebuilder cards with a crazy anual fee and interest rate.  They served their purpose after my bankruptcy but now I have two "normal" credit cards.

The only downside I can see is they were about 6 months older then my current cards, but I'm still realatively new at the credit rebuilding game.  I can re-enable them within X ammount of days if this was a really bad idea.

Fico: 585 (and climbing!)

[DrJim]

Six months is not much difference, unless they were really new cards.  What were the two new cards you received?  Just curious.

[Anonymous]

Orchard Bank (Still a rebuilder card but not as harsh as FP).

Reward Zone Mastercard (Appears to be run by Orchard Bank.. same web interface at least).

I just recently paid them both off in full and will start keeping them at 9% or lower.  Hoping I can move to a real card with no AF sometime next year.

[baskball33]

I will be doing the same thing shortly.  I received a CU Visa ard and a Cap1, both with no annual fee, $2k and $500 CL.  First Premier will be fired the first chance I get.  The advice I received and will pass on to you is exactly that.  Money savings above a few pts lost.  The time that it will effect you is when the old TLs drop off your report, 10 years.  The difference between 10 years and 10 years 6 months probably won't matter.  First Premier served their purpose for me and I am moving on and hopefully UP. 

So, Congrats!

[Anonymous]

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@baskball33 wrote:

I will be doing the same thing shortly.  I received a CU Visa ard and a Cap1, both with no annual fee, $2k and $500 CL.  First Premier will be fired the first chance I get.  The advice I received and will pass on to you is exactly that.  Money savings above a few pts lost.  The time that it will effect you is when the old TLs drop off your report, 10 years.  The difference between 10 years and 10 years 6 months probably won't matter.  First Premier served their purpose for me and I am moving on and hopefully UP. 

So, Congrats!

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I agree with the above posters - it's time to move on.

I doubt you'll see even a few points lost, but YMMV.  I loved my Orchard card as a rebuilder but I fired them as soon as I moved on to a no AF card.  I had no score impact.  Since you have two cards, I've learned from others on these boards to have zero reporting balance on one card and a very small reporting balance on the other.  You may see a slight score hit if you let both report a balance - but you can correct that within a month.

And First Premier's fees are absolutely over-the-top.  Good move to close 'em - even better move to keep 'em closed.

Congrats on your new cards!