topic Re: When to close a CC Account. in General Credit Topics

When to close a CC Account.

Jazee — Sun, 24 Nov 2024 00:03:31 GMT

I had 4 CCs with AAoA of just under 5 years. No inquiries or new accounts in over two years. Just got two new cards. Eyeballing a third. Have no use now for my NFCU Platinum anymore. It's about 15% of my total limit. My UTI is low 30% will be < 30% within a month of the new accounts reporting. No other Synch cards other than Amazon store card at $10k. 12% DTI. A little concerned about AA especially due to 2-3 new accounts in 30 days

Would closing the NFCU Platinum have likely a net negative or net positive from AA risk perspective compared to score effect? The new accounts will take my AAoA to about 2.7 years. Would the negative effect on UTI and AAoA from closing outweigh any benefit to lowering AA risk?

After closing how long will the account still be factored into AAoA?

Re: When to close a CC Account.

Im-back — Sun, 24 Nov 2024 02:54:03 GMT

Bad call. Sock drawer it if you aren't using it. Whatbto you hope to achieve my closing a tier one card?

Re: When to close a CC Account.

FicoMike0 — Sun, 24 Nov 2024 04:52:45 GMT

I don't think closing a card will do anything except raise your utilization.

Re: When to close a CC Account.

KatzNDawgs — Sun, 24 Nov 2024 14:37:05 GMT

Agree with the others that it is pointless to close that card. With such a young/thin file, there is no benefit to closing a no AF card - just sock drawer if you don't want to use it. It adds to your age and total util, so that is good.

Re: When to close a CC Account.

SouthJamaica — Sun, 24 Nov 2024 18:17:49 GMT

@Jazee wrote:
I had 4 CCs with AAoA of just under 5 years. No inquiries or new accounts in over two years. Just got two new cards. Eyeballing a third. Have no use now for my NFCU Platinum anymore. It's about 15% of my total limit. My UTI is low 30% will be < 30% within a month of the new accounts reporting. No other Synch cards other than Amazon store card at $10k. 12% DTI. A little concerned about AA especially due to 2-3 new accounts in 30 days

Would closing the NFCU Platinum have likely a net negative or net positive from AA risk perspective compared to score effect? The new accounts will take my AAoA to about 2.7 years. Would the negative effect on UTI and AAoA from closing outweigh any benefit to lowering AA risk?

After closing how long will the account still be factored into AAoA?

Don't close it.

It doesn't cost you anything.

30% utilization is NOT good at all.

Closing it will cost you even more points.

Re: When to close a CC Account.

Snook_on_the_Line — Mon, 25 Nov 2024 01:18:37 GMT

If you pay for Amazon prime then product changing it into a flagship card would probably be the best move

the annual fee on the flagship is $49

but you get a $139 credit if you pay your annual prime membership with the card

making the effective annual fee $-90

Re: When to close a CC Account.

Kforce — Mon, 25 Nov 2024 18:34:29 GMT

I agree with the others.

With your utilization, age of accounts, number of accounts, etc., it would

be better to keep the card for awhile.

Unlike many on the forum, I am not against closing cards.

However one needs to evaluate your own profile first.

If you had 840+ ficos, AAoA's 10+ years, 12 cards, <1% utilization, total CL's > yearly income,

then it could be a consideration.

4 cards, 5 years ---> No (keep it)