topic Re: Will Cancelling this card destroy my credit ? in General Credit Topics

Will Cancelling this card destroy my credit ?

BarneyBlack — Sun, 12 Jan 2025 00:20:07 GMT

I just started following my credit scores and realized that when i paid off a mortgage a few years ago and also closed 2-3 cards i did not use, my Experian Fico went from 833 to 785. Right now Credit Karma has TU at 820 and Equifax at 824.

I have had a AMEX Green for 20 years and have used it for everything.
But I am realizing it is not a good card for me. I do not travel or eat out. I thought the points i redeemed on Amazon were great and made the annual fee worth it but i know better now.

I also have an Amazon Prime Visa and am realizing it is the card to use on Amazon and at whole Foods where I shop a lot. duh

I also just got (last week) a AMEX Blue Cash Everyday card since they did no hard pull and realize it is the best option i have for Gas and stores other than Whole Foods.

So unless i start dining out and/or travelling this AMEX Gren card with its Annual Fee's only value is that it is the anchor of my credit history at 20 years ? right ?

My senses tell me that for now I should keep the Green Card and pay the AF if i want to do what is best for my credit scores in the short term ?

Re: Will Cancelling this card destroy my credit ?

Rogue46 — Sat, 11 Jan 2025 20:59:33 GMT

Yes i would definitely keep the green card open otherwise your length of history would hurt your scores.

Re: Will Cancelling this card destroy my credit ?

Patient957 — Sat, 11 Jan 2025 21:30:20 GMT

@BarneyBlack

It depends on what other accounts you have, their ages, and your current AAoA. If you have a bunch of other older credit card accounts, closing the Green Card is fine. If it's your only older card, then you might not want to close it. Keep in mind, even if you close it now, it will remain on your credit reports and part of your age stats for up to 10 years. So even if you do close it, you're not going to see any consequences for many years.

If you list your accounts and their ages, you'll get better and more specific advice from one of the gurus here.

Re: Will Cancelling this card destroy my credit ?

BarneyBlack — Sat, 11 Jan 2025 21:41:07 GMT

thanks, that is what i figured

Re: Will Cancelling this card destroy my credit ?

BarneyBlack — Sat, 11 Jan 2025 21:47:33 GMT

Amex Green 20 years

Chase prime ~2 years

Amex Blue Everyday 1 week

that is it. Like i said I regretably cancelled a handful of cards over the past 1-3 years.

I did not know that even closed the history would still play into the algo.

I think I will at least keep it untill i go through a few transactions that will require the best lookign credit score i can have.

thanks for the input .

Re: Will Cancelling this card destroy my credit ?

GZG — Sat, 11 Jan 2025 22:20:04 GMT

@BarneyBlack wrote:
Amex Green 20 years
Chase prime ~2 years
Amex Blue Everyday 1 week

that is it. Like i said I regretably cancelled a handful of cards over the past 1-3 years.

I did not know that even closed the history would still play into the algo.

I think I will at least keep it untill i go through a few transactions that will require the best lookign credit score i can have.

thanks for the input .

I would see if you have an upgrade offer to go from Green to Gold, you would be able to keep the card open another year while collecting a sizable bonus amount of points that would easily cover the increased annual fee and then next year do the same and go up to platinum

credit scoring metrics like seeing 3-4 credit card accounts (credit cards with limits)

but your open history of 20 years is impressive and closing the card won't "destroy" your credit, if you truly don't want the card anymore, close it. But I think the option to keep it open through an upgrade offer is better, and I would also consider getting another card or two in order to get to the 3-4 minimum cards with limits threshold.

Re: Will Cancelling this card destroy my credit ?

BarneyBlack — Sat, 11 Jan 2025 22:52:31 GMT

thanks.

If i upgraded to Green to Gold and used/cashed in the points that would be it for that card. I would have no use for it after that and need to cancel it at the end of 1 year to not be paying the $325/yr. Then i would have no cards with long history. right ?

Yeah, when i started learning about credit scores last week i realized i need more cards/credit for utilization. So i froze my credit and applied for the AMEX ED Blue. So i more than doubled my credit with no hard pull.

Up until last week and getting AMEX ED blue i had a 2 year old CHase Prime and the AMEX Green. Looks like the Green is 21 years old

Average Age of Accounts: 11 years 10 months

The average age of your accounts

Age of Oldest Account: 21 years 1 month

Time since your oldest account was opened.

It unfortunate that the Green Card does not post a credit limit. The last time i checked how much it would let me charge on it it was almost 200K.

As soon as i get passed some events that will be checking my credit i will get another card. I am thinking Cap One Savor maybe. Or a card from my primary bank BofA.

Or... Would getting a Master Card help in diversifying my card lineup for score purposes ? or other ?

Re: Will Cancelling this card destroy my credit ?

Varsity_Lu — Sun, 12 Jan 2025 00:06:26 GMT

So, my Lowe's card opened in 2003 and closed in 2015 is still reporting and helping my AAoA. If he closes his AmEx card now, won't he still reap the benefits of the 20+ years he has the account open for the next 10 years? By the time it drops off his report it will be giving him 30 years of age. If he openes another card or two now, seven years from now it won't matter, anyways. There isn't any benefit to having an AAoA over 7 years anyway, right?

Re: Will Cancelling this card destroy my credit ?

Varsity_Lu — Sun, 12 Jan 2025 00:09:19 GMT

@BarneyBlack

Why wait for the Savor? I'm sure you are buying groceries and eating out, so just get it now for the SUB. By the way, I think the BCE and Savor cards are two of the best no fee cards combos out there. So many useful categories at 3%.

Re: Will Cancelling this card destroy my credit ?

BarneyBlack — Sun, 12 Jan 2025 00:21:41 GMT

I am trying to avoid hard pulls untill after a few events i need to look good for. Otherwise i would get the Savor now. But...

I just got the AMEX BCE last week since it did not do a hard pull. So I am using it for anything that I do not use my Chase Prime on. I am hoping getting this new card helps more than it hurts in the near term since i had very little credit limit reported and only 2 cards, no loans etc.

If i ate out at all i would use the AMEX Green.

Re: Will Cancelling this card destroy my credit ?

Patient957 — Sun, 12 Jan 2025 01:33:29 GMT

@BarneyBlack wrote:
I am trying to avoid hard pulls untill after a few events i need to look good for. Otherwise i would get the Savor now. But...

I just got the AMEX BCE last week since it did not do a hard pull. So I am using it for anything that I do not use my Chase Prime on. I am hoping getting this new card helps more than it hurts in the near term since i had very little credit limit reported and only 2 cards, no loans etc.

In the near term, you will see a penalty of around 20 points in Fico 8 for a new revolving account less than a year old. By opening the BCE, you put yourself on a 'new revolver' scorecard. You will get the points back when the BCE turns a year old.

Re: Will Cancelling this card destroy my credit ?

BarneyBlack — Sun, 12 Jan 2025 01:39:34 GMT

@Patient957 wrote:
In the near term, you will see a penalty of around 20 points in Fico 8 for a new revolving account less than a year old. By opening the BCE, you put yourself on a 'new revolver' scorecard. You will get the points back when the BCE turns a year old.

ouch, 20 points. how many more points would it have been if i had to do a hard pull to get it ?

Re: Will Cancelling this card destroy my credit ?

BarneyBlack — Sun, 12 Jan 2025 01:48:24 GMT

I just looked at my Experian Fico 8 at AMEX and it went up 47 points ?

I guess i cannot post a screeenshot here ? here is link to picture https://prnt.sc/3hmNscaINupR

maybe it will come back down 20 points ?

Re: Will Cancelling this card destroy my credit ?

Patient957 — Sun, 12 Jan 2025 02:19:47 GMT

@BarneyBlack wrote:
I just looked at my Experian Fico 8 at AMEX and it went up 47 points ?
I guess i cannot post a screeenshot here ? here is link to picture https://prnt.sc/3hmNscaINupR

maybe it will come back down 20 points ?

Your week old BCE will not have reported yet, so the drop from 833 to 785 and then bounce back to 832 has nothing to do with the BCE. Something else is going on. It's unclear what, based on what you've posted (to me at least, maybe someone else has an idea).

Yes, you should lose 15-25 points when the BCE reports.

Edit to add: If you have an Experian account, you can log in there and see what's going on. If not, you should -- it's free.

Re: Will Cancelling this card destroy my credit ?

Patient957 — Sun, 12 Jan 2025 02:29:28 GMT

@BarneyBlack wrote:
ouch, 20 points. how many more points would it have been if i had to do a hard pull to get it ?

Anywhere from zero to about 5 or so.

Edit to add: Looks like the HP may have cost you 1 point (832 vs. 833).

Re: Will Cancelling this card destroy my credit ?

BarneyBlack — Sun, 12 Jan 2025 03:41:06 GMT

That 833 I use to have was from 3 years ago before i paid off a mortgage and closed at most 4 cards. I just never look at this stuff untill a few weeks ago and realized i was not at 833 and was at 785. I just assumed the drop was from the mortgage and closing of cards. It could have dropped 2 years ago or a month ago for all I know.

And I do not know how i could have a ding from any hard pull when all 3 of reporting agencies accounts are frozen and were frozen when I applied for the new AMEX.

edit ; the experian account says that raising the limit on my Prime Visa was positive. Before getting the new AMEX EBC the only card with a limit was my Prime and it was like 6.9k now it is 8.4k. i raised it a few weeks ago. I charge maybe 2-5k every month on my Green card and pay it in full each month so my overall utilization is high maybe. Hopefully my new card with another 10K limit will help that when it kicks in.

more edit: Chase Credit Journey has my Experian Vantage3 score at 831 lol.

Re: Will Cancelling this card destroy my credit ?

Patient957 — Sun, 12 Jan 2025 03:40:42 GMT

@BarneyBlack wrote:
That 833 I use to have was from 3 years ago before i paid off a mortgage and closed at most 4 cards. I just never look at this stuff untill a few weeks ago and realized i was not at 833 and was at 785. I just assumed the drop was from the mortgage and closing of cards. It could have dropped 2 years ago or a month ago for all I know.

And I do not know how i could have a ding from any hard pull when all 3 of reporting agencies accounts are frozen and were frozen when I applied for the new AMEX.

edit ; the experian account says that raising the limit on my Prime Visa was positive. Before getting the new AMEX EBC the only card with a limit was my Prime and it was like 6.9k now it is 8.4k. i raised it a few weeks ago. I charge maybe 2-5k every month on my Green card and pay it in full each month so my overall utilization is high maybe. Hopefully my new card with another 10K limit will help that when it kicks in.

If I were you, I would want to know when my score dropped 48 points and why it just popped 47 points. I would check in at Experian and see what's going on.

Re: Will Cancelling this card destroy my credit ?

BarneyBlack — Sun, 12 Jan 2025 03:45:16 GMT

I would think it dropped 3 or so years ago when i paid off a mortgage and then probably more so when i cancelelled a bunch of cards and redeced my credit limit to <7k while spending up to 5k a month and sometimes more. I bought a 12K mountian bike one month on it and bought probably 30K worth of firearms with it and had some other big charges so my utiliztion was over 100% at times.

I had no idea about utilization and AMEX Green was ok'ing anything. I was even going to charge a new truck on it at one point for ~70K but did not.

Re: Will Cancelling this card destroy my credit ?

BarneyBlack — Sun, 12 Jan 2025 03:53:02 GMT

@Patient957 wrote:
If I were you, I would want to know when my score dropped 48 points and why it just popped 47 points. I would check in at Experian and see what's going on.

I cannot find anything on the site that shows history. or a timeline of when it happened.

I will call them tomorrow if that is a thing. They have a number and Sunday hours .

Thanks for the input/help @Patient957

Re: Will Cancelling this card destroy my credit ?

Realist — Sun, 12 Jan 2025 05:19:01 GMT

How's the annual fee? I'd keep it personally. At least until the profile ages some of the other accounts. You still have those rolling ten years.