topic Closing card question in Credit Cards

Closing card question

Yasselife — Fri, 05 Nov 2021 16:24:09 GMT

I'd like to know if it's Ok to close cards prior to the 2yrs mark.
I am currently trying to reduce the amount of cards that are SD, like quicksilver, synch, usaa cash rewards... my ideal number would be 5.

Also, should I close gradually every 3-6 months or go on black&white mode?

Re: Closing card question

Hoben02 — Fri, 05 Nov 2021 16:50:37 GMT

No issue closing cards after one year, however, does this increase your utilization rate to over 30% and are the cards you are closing with the longest credit history. Definitely close a card if they are charging an annual fee and you are not using it, but if there is no fee might want to just keep it around

Re: Closing card question

Yasselife — Fri, 05 Nov 2021 17:00:22 GMT

@Hoben02 @Utilization is less than 1%(azeo), I pay in full each month.

My reason is for peace of mind, and I'd like to keep those I find useful(quality over quantity), 'say lenders that offer flex loans/BT/and good rewards overall in their mobile apps.

Re: Closing card question

SouthJamaica — Fri, 05 Nov 2021 18:05:00 GMT

@Yasselife wrote:
I'd like to know if it's Ok to close cards prior to the 2yrs mark.
I am currently trying to reduce the amount of cards that are SD, like quicksilver, synch, usaa cash rewards... my ideal number would be 5.
Also, should I close gradually every 3-6 months or go on black&white mode?

It's ok to close them whenever you like, but bear in mind

1. It could affect your aggregate revolving utilization percentage

2. Down the road, probably many years later, it will reduce the age of your accounts

3. It will reduce the number of zero balance accounts, which could possibly cost a few FICO points here and there

And yes, if you do it, you should do it slowly and gradually.

Re: Closing card question

Anonymous — Fri, 05 Nov 2021 21:00:47 GMT

The answers above are score focussed, which is certainly a consideration. But the other concern with closing cards "too early" is the relationship with the issuer. If you get a card with a big SUB, and close it soon after meeting the SUB, that has bad optics to a lender.

Some seem more concerned than others, such as Amex, who might deny you a SUB for a while on any of their cards if you have done this often (or similar, where both "often" and "similar" are decided by them!)

Re: Closing card question

pinkandgrey — Fri, 05 Nov 2021 22:07:27 GMT

The above answerers raise good points that you should consider. However, if score and relationship with lender are not weighing heavily on your mind, I would close any and all cards you don't want. If it were me, I would do it all at once. Again, that's just me. I agree about desiring "peace of mind" more than the other stuff, so I do what works best for me and move on with my life lol. Scores will rebound.

Re: Closing card question

Yasselife — Fri, 05 Nov 2021 23:24:02 GMT

@pinkandgrey Yes, going full speed black&white mode!
closed:

paypal credit, quicksilver. I'm debating if I should close usaa since it's one of my older cards with good limit though the apr is 25.99 and 1.5%? Help me, lol

Re: Closing card question

Anonymous — Fri, 05 Nov 2021 23:52:59 GMT

@Yasselife wrote:
@pinkandgrey Yes, going full speed black&white mode!
closed:
paypal credit, quicksilver. I'm debating if I should close usaa since it's one of my older cards with good limit though the apr is 25.99 and 1.5%? Help me, lol

Since you want to get down to 5, I would just close it. USAA won't let you pc, lower Apr, and the cli would be hp. But the other thing it has no foreign fee compared to the other general spend cards you have(double cash + freedom unlimited). At the end of the day you gotta make choice on what you want. If that's what want to close, close it.

Are you still getting rid of freedom unlimited?

Re: Closing card question

Yasselife — Sat, 06 Nov 2021 01:40:59 GMT

@Anonymous Getting rid off my freedom unlimited? Never! lol

I will hold on to the USAA card because of the yrs of relationship I have with them, 5yrs can add some weight in my decision. I see potential products that could be interesting in the future. I would close the card for a better USAA.
last time I traveled was 10yrs ago, lol

Congratulations on you PC success with Citi and... that's as far as my flirting goes. 🙏

Re: Closing card question

Yasselife — Sun, 07 Nov 2021 13:53:35 GMT

@Anonymous freedom 💪

Re: Closing card question

Lou-natic — Sun, 07 Nov 2021 15:27:57 GMT

The sooner you close them the less it will hurt you in the future. Imagine having a crap card for 15 years because you are afraid of losing that account age...yuck. I mean there are people out there with 20 year old accounts with $300 limits because they didn't close them when they should have...I'm not saying you have it that bad but I wouldn't wait if I was you. Your scores will recover if you have an otherwise robust file.

Hoarding credit card accounts is just like any other hoarding IMHO.

And believe me I have some redundant accounts now that need closing and will be making that list soon. Just part of the process.