Will closing my oldest credit card hurt my FICO before applying for other cards?

[Anonymous]

My credit history is under two years old. I started with a secured Wells Fargo credit card 20 months ago. Since then I have received credit cards from Chase, Barclay, and Capital One. Would my FICO score be impacted negatively if I close my Wells Fargo cc? They offer no rewards and charge an annual fee so I never use it. My FICO scores are TU 752, EX 742, and EQ 748. I intend to apply for a Chase CSP or AMEX at the end of the month since I still don't have a card with no foreign transaction fees. I don't want to have too many credit cards open. So would closing my WF secured cc hurt my FICO before apply? 

Credit Lines are: 

Wells Fargo Secured $700

Captial One Quick Silver One: $400

Chase Freedom $1000

Synchrony Amazon: $3500

Barclay: $5000

Utilization is under 7%

Thank very much in advance  

[newhis]

No, it will not hurt your score, you have other cards with good limits so $700 will not change your % much.

[Anonymous]

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@Anonymous wrote:

.... I don't want to have too many credit cards open. So would closing my WF secured cc hurt my FICO before apply? 

Utilization is under 7%

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Welcome to the Forums!

I agree with Newhis that it probably won't hurt your score, though I do note your utilization is 7% now -- which is close to the breakpoint of 8.99% where you begin to take a scoring penalty.  I'd feel better about assuring you that this is an ok move if you were confident that you can easily keep your utilization < 5% given the new lower credit limit.

Can you tell us why you don't want to have six credit cards open?  Do you feel like this will look bad to a potential lender or CC issuer?  It won't.  It will look good.

My own recomendation would be to first optimize your score by paying All cards to Zero Except One (AZEO) with the remaining card having a small balance (e.g. $20).  After the new balances report, then apply for your new card.  Once you have your new card, then close the one you don't like.

But closing it first is also fine as long as you do AZEO before you apply for the new card.  The closure itself won't affect your score.

[Anonymous]

Thank you soo much for your advice and imput. I do feel it is because six credit cards is too much, but also I don't use Wells Fargo cc to justify the annual fee. 

[Anonymous]

When will the annual fee be due next? 

You are smart to want to close it to avoid the AF.  But if the AF is not going to hit in the next two months, then you can choose to close it after you have the new CC.  Again, totally up to you.

I would, however, recommend AZEO regardless  as a preparation step before you apply for the new card.

[Anonymous]

Last year I was charged the AF around early June. I have already called Wells Fargo to close my account. Hopefully I am able to get another credit card without any hassles. I've paid most of my balances down from last month. I currently owe Amazon Synch $405, Capital One $150, and Barclay $247. Your saying I should off two of those accounts ? 

I am mostly worried about Chase as I am currently at 5/24. But two months ago I spoke to one of their credit analyst and she mentioned that they don't count store credit cards towards that rule, but from what I am reading that is not always the case. 

Thanks Again!!

[SouthJamaica]

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@Anonymous wrote:

My credit history is under two years old. I started with a secured Wells Fargo credit card 20 months ago. Since then I have received credit cards from Chase, Barclay, and Capital One. Would my FICO score be impacted negatively if I close my Wells Fargo cc? They offer no rewards and charge an annual fee so I never use it. My FICO scores are TU 752, EX 742, and EQ 748. I intend to apply for a Chase CSP or AMEX at the end of the month since I still don't have a card with no foreign transaction fees. I don't want to have too many credit cards open. So would closing my WF secured cc hurt my FICO before apply? 

Credit Lines are: 

Wells Fargo Secured $700

Captial One Quick Silver One: $400

Chase Freedom $1000

Synchrony Amazon: $3500

Barclay: $5000

Utilization is under 7%

Thank very much in advance  

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If you can keep your utilization under 7% after closing it, no I don't think closing it will have any negative effect on your scores.

I don't think closing it will enhance your scores either.

Since you've opened 5 accounts within the past 24 months, you might be disqualified for many of the Chase cards.

[Anonymous]

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@Anonymous wrote:

Last year I was charged the AF around early June. I have already called Wells Fargo to close my account. Hopefully I am able to get another credit card without any hassles. I've paid most of my balances down from last month. I currently owe Amazon Synch $405, Capital One $150, and Barclay $247. Your saying I should off two of those accounts ? 

I am mostly worried about Chase as I am currently at 5/24. But two months ago I spoke to one of their credit analyst and she mentioned that they don't count store credit cards towards that rule, but from what I am reading that is not always the case. 

Thanks Again!!

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I don't know for sure what it means to off an account.  That sounds like a term Tony Soprano would use about someone with a very short life expectancy.

If you are thinking I was suggesting you close more accounts... absolutely not.  I was suggesting that you should pay all your cards to $0, except one.  The remaining card would be a small positive balance, like $20 say.

All cards at Zero Except One (AZEO) is a strategy people use here to get themselves extra scoring points before any new application for credit.  It's a configuration that FICO really likes.  Of course, you do have to wait for the new CC balances to appear on all your reports before applying for the new card, loan, or whatever.

The rep who told you that store cards do not count toward Chase 5/24 is mistaken.  Almost everything counts.  AU cards count, business cards count, etc.

If you get your CC balances reporting better (via AZEO) you can try going into a branch and asking a branch specialist to see if you are pre-approved for any cards.  After he pulls up his list you can ask him what options you have.  Don't mention the card ahead of time -- wait till he pulls up your pre-approvals first.  Many people report success at bypassing 5/24 when doing it in-branch.  The branch managers have a back door method of pre-approvals which is NOT the same as if you did the pre-approval check yourself.  I got my Chase Sapphire Preferred on Feb 1 of this year via that method, and at that time I had nine credit cards that had been opened in the previous 23 months, all of which were on my reports.

[Anonymous]

Sorry, I meant to type "pay off". The other interpretation was humorous. Your advice was very helpful, thank you very much. 😊

[Anonymous]

It also never dawned to visit a Chase bank to check for credit card offers since I bank through USAA but I've never applied or looked at any of their credit cards. I really appreciate your time and input.