Closing Credit One affecting credit score.

[Anonymous]

So today after much consideration, I decided to cancel my infamous Credit One card, I am a bit worried that it may affect my credit score since I am trying to rebuild for the last year. However, it was an impulse move when I applied for it, and I take full responsibility for not reading the annual fees and other charges, Now thay I have better options I don't want to pay the $8 a month's second annual fee for a credit card with a $500 CL. 

I currently have:

Amazon Prime Store Card: CL$1000 no balance

Capital One Quicksilver (no annual fee) CL $500 no balance

Petal Card: $2500 CL no balance

Apple Card: $4000 CL $850 Balance
Discover Card: $2000 CL $360 Balance

BBVA Card: $5000 CL no balance

The credit one was $500 CL with no balance in over 6 months, it was my oldest card along with my Amazon prime card which they were opened on 12/19 when I started building my credit witch is currently in an average of 725, so yes all these cards are less than a year old. I am not planning to get more cards for another year. 

Will closing this card affect negatively? did I make a mistake? 

Any info will be greatly appreciated. 

[Drwaz99]

Close it. Close it fast. It should have no impact on your scores. Doing some quick math, you'll stay under the 8.9% aggregate utilization (~7.8% to roughly 8%) threshold once you close it, so no issues there. From an age standpoint, it'll stay on your reports for up to 10 years but your Amazon Card is the same age so it will have no impact when it eventually falls off. 

[Remedios]

Hi @Anonymous and welcome to the forums 

There should be no immediate scoring change as long as utilization remains unchanged. 

They like to sneak in fees after the card is closed, so just watch it for the next month or two 

[Anonymous]

Thank you for the kind response to both of you. I am planning to pay off my Discover card in two weeks as well, and then start working on my apple card.  

I called to cancel it, but it was a bit hard, cause the woman kept telling me to cancel in December and not now,  but I didn't see the point. After the fifth time of me kindly telling her I am not interested, she flustered said it is canceled effective today, and I did not get a chance to request a letter of cancelation.  . 

Y .

[Anonymous]

Get rid of it ASAP! Will save you $8 a month and won't really effect your score.

[Remedios]

Give it a week, then call 

Ask if they show account as closed and if there are any charges on it. Make sure you get the person's name, and write down time and date you called.  You can ask for something that reflects account cancellation unless you receive something in the meanwhile 

[zerofire]

Your profile is too young and the credit line too small for it to matter much if at all. It should be more concerning to you that you will have more funds in your pocket instead of being sucked out as fees. No amount of points is worth more than the ridiculous fees that Credit One charges.

[Anonymous]

@zerofire Thank you, that's what I wanted to get rid of it as soon as I could. Thank God for this forum and youtube videos, the $95 annual fee for a $500 credit card seemed a bit ridiculous, now I do pay more attention to APR's and credit charges. 

[zerofire]

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@Anonymous wrote:

@zerofire Thank you, that's what I wanted to get rid of it as soon as I could. Thank God for this forum and youtube videos, the $95 annual fee for a $500 credit card seemed a bit ridiculous, now I do pay more attention to APR's and credit charges. 

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The real issue is not the $95 for $500 of credit but what else they are offering on the card to make that $95 worth your hassle. The answer for that is absolutely nothing. Other cards can give you more for your money either with no or lower fees or offer higher credit lines with unique benefits. This is why Credit One is a Junk lender which is below Comenity and Synchrony who are Sub-Prime. Even Capital One has a higher rating as Pre-Prime and they are being paradied badly.