Cancel or Keep Credit Card with Membership Fee?

[Anonymous]

I currently have a Capital One Venture credit card that gives me 2% rewards on all purchases through Amazon or travel redemption. It is my oldest credit card account and it has been active and in perfect standing for 7 years. My only other credit card is a few months old and has revolving 5% reward categories. Capital One has recently added a $95 annual membership fee that will be charged in March if I keep the Venture card. I was thinking of getting a better 2% cash back card like Citi Double cash which has no membership fee and then canceling my Venture card. My good credit history will remain on my account for about 10 years before the Venture card is removed. By that time I will have 10 years of credit history with my current cards. Will the Venture card not being on my account in 10 years hurt my credit score significantly (having a 20-year account as my oldest as opposed to 10-year)? Not sure if it's worth paying $950 in membership fees over the next 10 years as a better score could save me on a future mortgage/housing purchase. Advice would be appreciated.

[FinStar]

Hi OP and welcome to the forums.

I realize the Venture card may not be the right fit going forward; however, you can contact Capital One to see if you can convert the Venture to the Quicksilver card and at least you'd still be able to earn cash back (1.5% vs 2% with Citi DC). You can also downgrade to VentureOne as another option.

Alternatively, there's the Savor One product, but IIRC not very many individuals have been successful in converting to that card...yet.

[K-in-Boston]

Welcome to the forums!  While for the next (up to 10) years, it's not going to matter as much, when the card drops off your credit age will also drop and it's good to have to help balance out your average credit line age later in life.  I agree that's a lot of annual fee for a card you're not going to use.  Take a look at the upgrade thread in this link:

https://ficoforums.myfico.com/t5/Credit-Cards/Capital-One-check-for-upgrade-link/m-p/4934733

If you can product change to a no-fee card, then you can just make a small purchase every 4-6 months on the card to keep CapOne from closing it.  If nothing is showing with no annual fee, certainly contact them as @FinStar suggested.  If nothing is available, you'll certainly have to make the choice of whether it is worth keeping or not.  Personally, I regret closing my oldest accounts as they've long fallen off of my reports.

[blindambition]

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@FinStar wrote:
Hi OP and welcome to the forums.

I realize the Venture card may not be the right fit going forward; however, you can contact Capital One to see if you can convert the Venture to the Quicksilver card and at least you'd still be able to earn cash back (1.5% vs 2% with Citi DC). You can also downgrade to VentureOne as another option.

Alternatively, there's the Savor One product, but IIRC not very many individuals have been successful in converting to that card...yet.

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+1

I agree with this suggestion. Losing that TL in 10 years will hurt some. Being there’s 10 years between next oldest card.

[Anonymous]

product change to venture one or quicksilver.

[Anonymous]

Do a PC. That is a long history.

[Anonymous]

Thank you guys for all the input. Downgrading/switching the card to a different one Capital One offers without a fee is an excellent idea. I'll give it a shot and report back.

[Anonymous]

Trying to switch is a good thing to do.  That said, if it doesn't happen, cancelling is also OK.   Yes, in 10 years (could be less, not guaranteed) the trade line will drop off, but your other card(s) will also have aged 10 years and unless you have a lot of much younger cards nearer the time, the hit should be small.

Plus, in 10 years we will have FICO X (maybe 12? 13? ) and who knows how that will score profiles!