topic Re: Cancelling credit cards in General Credit Topics

Cancelling credit cards

Gat — Mon, 03 May 2021 00:21:49 GMT

Here's my situation I have the following

Discover secured

first premier

credit one

cap one

delta Sky Amex (just got approved)

the cards are all about 6 months old

Perfect payments no derogatory

eventually want to cancel premier and credit one cause of fees

Question should I do it sooner or later

as far as score impact???

Re: Cancelling credit cards

Anonymous — Mon, 03 May 2021 00:30:23 GMT

@Gat wrote:
Here's my situation I have the following
Discover secured
first premier
credit one
cap one
delta Sky Amex (just got approved)
the cards are all about 6 months old
Perfect payments no derogatory
eventually want to cancel premier and credit one cause of fees
Question should I do it sooner or later
as far as score impact???

You generally never want to close your oldest credit card. I closed both Credit one and 1st Prem and didn't notice any change in my scores.

Re: Cancelling credit cards

Gat — Mon, 03 May 2021 00:34:36 GMT

Right... discover and cap one were opened at the same time

keeping those (eventually discover should become unsecured)

Canceling I would lose 850 in credit but Hopefully get an increase on the others eventually

thanks

Re: Cancelling credit cards

Anonymous — Mon, 03 May 2021 00:47:45 GMT

@Gat wrote:
Here's my situation I have the following
Discover secured
first premier
credit one
cap one
delta Sky Amex (just got approved)
the cards are all about 6 months old
Perfect payments no derogatory
eventually want to cancel premier and credit one cause of fees
Question should I do it sooner or later
as far as score impact???

Personally, I would keep them open for the year and close them before the annual fee becomes due; do both Credit One and First Premier charge monthly fees too? If so, than I would close them since you'll already have three revolvers with the new Amex.

Re: Cancelling credit cards

Gat — Mon, 03 May 2021 00:53:50 GMT

No.... yearly fees

thanks

Re: Cancelling credit cards

Anonymous — Mon, 03 May 2021 01:33:44 GMT

@Gat wrote:
No.... yearly fees
thanks

You're welcome! While not your exact situation, I came across this thread with some relevant info that may be helpful: How to get rid of subprime cards

Re: Cancelling credit cards

Gat — Mon, 03 May 2021 01:59:31 GMT

Excellent.. thanks

Re: Cancelling credit cards

Ficoproblems247 — Mon, 03 May 2021 02:03:43 GMT

@Gat wrote:
Here's my situation I have the following
Discover secured
first premier
credit one
cap one
delta Sky Amex (just got approved)
the cards are all about 6 months old
Perfect payments no derogatory
eventually want to cancel premier and credit one cause of fees
Question should I do it sooner or later
as far as score impact???

Canceling the cards will not have an impact on your scores unless closing those open lines causes you to cross any utilization thresholds. Once you close the card, it will generally remain on your credit reports for roughly about 10 years or so (this varies sometimes) and will continue to contribute to building up your account age, even though it has been closed. If it were me, I would close First Premier and C1, just like you were planning. Maybe space them out 1-2 months between closures just to be on the extra safe side. I see no reason to keep them around since you have 3 other much better options to fuel your rebuild. Just my 2 pennies. Welcome to the forums!

Re: Cancelling credit cards

Gat — Mon, 03 May 2021 02:08:24 GMT

Yes sounds like a plan

thanks

Re: Cancelling credit cards

805orbust — Mon, 03 May 2021 03:12:40 GMT

+1. Credit One should be closed as soon as a few months go by and you've got a couple of better cards. It is a stepping stone only. It did its job. It'll continue to be on your reports for up to 10 years so no issue there. When you call, they may offer to waive your next annual fee. Accept it and then set a reminder to close it a year from now. When closed, continue to check your online account for a month. They will charge fees as a "gotcha." The same applies for First Premier. In and out.

Re: Cancelling credit cards

nwa479 — Wed, 05 May 2021 04:21:27 GMT

I would close the First Premier prior to the annual fee starting at the first year. After year one they'll charge the annual fee of $79 plus a 12 a month fee. They will also try to offer you credit line increases that will cost you up to 25 percent of your CL increase. I would close this before the end of year one.

Credit One is a starter card but has a few options for better credit. They have about 7 card options on their website including some with cash back options. Their rebuilder card may charge you a monthly fee of about 8.25. They're better card has a 39 annual fee. They also have one with no AF and cash back. I called them to cancel a card and they credited a percentage of an upcoming annual fee on one card and canceled the monthly fee for three months. They will give periodic credit line increases. I've heard their max CL is about $2500. I have two of their cards but plan to close at least one next year. I'll see if I can product change the last one to their best card. If they don't I'll close this one too.

I am nearing the end of my rebuild and will have several cards to close that I'm spreading out over the next year. Monthly fee cards first then cards with AF and/or no cash back.

Re: Cancelling credit cards

babygirl1256 — Wed, 05 May 2021 08:37:42 GMT

I would close the Credit One and First Premier but I would keep the Discover Secured . . . my personal experience with Discover Secured was that I opened it 01/2019 with $1k secured deposit and within 7 months Discover sent my deposit back and upgraded my card to unsecured with a $1.5k limit and over that last 1½ my limit has continued to increase and is now $5.6k . . . so I am very happy!!!