Close a card, or let it die on the vine?

[CreditCobra]

I've got two cards that really don't offer a benefit to me any longer. Specifically Affinity Cash Rewards, and USALLIANCE Visa Signature. The Affinity used to have 5% cagetegories, and the USALLIANCE, was getting 6% on groceries, and 3% on everything prior to that, now it's just a 2% card. I can do equally or better with other cards in my wallet.

I've decided that since I no longer need these two, my question is should I actively close them, or just sock drawer them, and let the credit unions eventually close them on their own? Is there a difference with respect to my credit reports? Does me closing the account look different than the financial institution closing it, and is one method more preferrable than the other?

Thanks!

[Horseshoez]

@CreditCobra, a closed account in good standing is the same regardless of whether the financial institution closed it or you did.  You also have a third option, the proverbial "Sock Drawer"; this is the approach I've taken with my two CapOne cards. 

[swankytiger]

if you let it die, it will be at least a year before they send you something saying they are going to close it in like 6 months. If you close it, you dont have to worry with it anymore.

[Wu-Credit]

I guess it is entirely up to the cardholder if they would rather close or sock drawer until it closes itself. As others have said, it does not matter either way.

I personally just close unused cards after a year, the Affinity CR being one of them. I've closed about 10 cards in the last two years and it has had minimal effect on my scores.

[Remedios]

If you decide not to close,make sure CU allows you to lock cards. If we know we aren't using card(s), we might be less vigilant about making sure no fraudulent charges are being made.

If they have lock, I see no compelling reason to close, it's always good to have accounts reporting $0.00 for scoring purposes. 

[CreditCobra]

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@Remedios wrote:

If you decide not to close,make sure CU allows you to lock cards. If we know we aren't using card(s), we might be less vigilant about making sure no fraudulent charges are being made.

If they have lock, I see no compelling reason to close, it's always good to have accounts reporting $0.00 for scoring purposes. 

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I appreciate the tip about locking the cards. This is why I enjoy these forums. Lots of helpful advice.

[GatorCowboyLion]

Affinity CR is still 5% cb for the first 1k per month at Amazon and no prime requirement. Seems like there may be a possibility of future use, no? I mean even if you're a prime member today, say by five years from now it's a $500 subscription and it stops being worth it to you, that Chase card will still require membership. Just food for thought. 

But to answer your question, I'm team die on the vine or even keep it on life support by putting a dollar on it every year to stretch the metaphor. 

[NoHardLimits]

If it's really no longer useful for anything (either for rewards/perks or age/utilization), then I would just close it so that it no longer occupies any mental space.  

[AverageJoesCredit]

I used to jump on the close a cc card if you don't need it/ not useful  advice/ arguments but through experience and  how things have tightened up lately, I'd lean  more on the side of hanging on to a card that may be usable again in the future because that card  may not be that easy to obtain again  if one closes and then reapplied  for it down the road.  

[ptatohed]

I'm typically just let it Go Gentle Into That Good Night.  But in this case, I would perhaps keep them alive with a purchase every 6 months.  When a card never really had anything special going for it (in my case, my Quicksilver), I had no problem at all letting it close itself.  But when a card(s) has historically had something special going for it, you never know!  What if Affinity or Alliance brought back, at least in part, some of the special features they had in the past or even new features?  You never know!