So I'm finally pulling into a credit area where I'm getting decent cards -- just got approved for a Discover It card -- and am looking to shrug off some of the cards I picked up when I was first rebuilding. I have a couple that are just crummy; high interest rates, low balances, high AF's. I've never really been in a position where I was able to ditch a card before, so while it's kind of exciting to be in this position I'm also aware that canceling a card can be a tricky thing. I know it'll effect my utilization ratios, but since I'm cancelling my smaller balance cards I'm not really afraid of that ding.
Here are the ages and AF's for each of my cards. I included my balance/CL in parenthesis for each to see how it might affect my utilization
Discover IT ($0/$1,200) - Just approved; $0 AF
Capital One Platinum ($147.69/$500) - 3 months; First year free, $19 going forward
Credit One ($110.90/$400)- 1 year 6 mos; $8.25
Orchard ($0/$300) (About to switch to Capital One because it was HSBC) - 1 year 6 mos; $59
Capital One Secured ($0/$300) - 2 years 5 mos; $29
Orchard is the one I'm eying for cancellation right now. I want to slowly replace my sub prime cards, so once I get another better card my second one to cancel would be either Credit One or my Capital One Secured, I think. But Orchard's definitely top on my current chopping block.
So really I guess I'm asking for a better understading of how cancelling a card will affect my score. It's sitting at a $0 balance, so I'd be canceling it with no pending charges. But with the way credit cards work I'm not even sure if that's a good thing!
Canceling your cards will affect your overall util which in turn your score. Before I would cancel, I would email ExOff and try to get your AF waived, ask for a better APR, and req CLI ( ESP on the cards you have had for a 1 yr or more)
AFAIK, Credit One hasn't waived any fees so they may not but its worth a try.
Edit: Re: util if you carry balances, which it seems you do.
AFAIK, Credit One hasn't waived any fees so they may not but its worth a try.
Edit: Re: util if you carry balances, which it seems you do.
I did try that with Orchard, they've never given me a CLI and I've paid my balance in full every month since I had the card. I got a response saying that since they were now moving to Capital One they weren't doing any CLI's (apparently Capital one has some sort of freeze on CLI's? I read about it around these forums as well) and also stated they were not abel to waive my annual fee.
I haven't tried with Credit One, though.
@09Lexie wrote:
Canceling your cards will affect your overall util which in turn your score. Before I would cancel, I would email ExOff and try to get your AF waived, ask for a better APR, and req CLI ( ESP on the cards you have had for a 1 yr or more)
AFAIK, Credit One hasn't waived any fees so they may not but its worth a try.
I agree with Lexie...before cancelling any of them, see if they'll waive the AF. If your AF isn't due right away, call them again before it hits. If they STILL can't waive it, then cancel the card on the spot. Give yourself an extra couple months of AAoA goodness on top of the max of 10 you get from closing the account, eh? 