Closing cards in general

[myquestionsfico]

Other than avoidance of an annual fee, is there ever a good time or smart reason to close a card out?  Do card issuers ever make offers to get you to not close them?  If so, are there any smart strategies for that?

[dragontears]

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@myquestionsfico wrote:

Other than avoidance of an annual fee, is there ever a good time or smart reason to close a card out?  Do card issuers ever make offers to get you to not close them?  If so, are there any smart strategies for that?

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There are tons of reasons to close a card. The ones off the top of my head are:

AF avoidance 

No longer suits your spending patterns 

-Bank changes their rewards program 

-there is no longer a location near you to use the card (I closed my Sam's card because I moved and there were no longer any near me)

Simplify your credit life (some people really prefer fewer cards to manage)

Concerns about fraud on dormant cards (even cards that are "permanently sock drawer have to be monitored)

Personal moral/ethical reasons (i.e. bank X did Y and I can't support that behavior)

I am sure that there is plenty more reasons.

As for banks making offers for you to keep the card, the term is "retention offer". Yes some lenders offer them however, don't expect a good retention offer on a card you never use. Also don't ever call a credit card company threatening to close the card to try and get a retention offer unless you really are willing to close it (many a front line CSR is more than happy to close your card for you).

[FireMedic1]

How many cards do you have now? Do any have annual fees? Which ones are you considering closing?

[myquestionsfico]

I've got about 10 cards.  I am thinking of closing a couple of ones that I don't use much:

1.  Amex Platinum - Annual fee is super high, and other than travel (which is obviously curtailed now and for a while into the future), I don't see a lot of benefits.  The card renews in August (have had it less than a year), I believe, so I would consider closing when the fee hits.

2.  Amex Everyday - Just not using it much, and I have an Amex Skymiles and Optima that serve me well.  Have had about a year.

3.  CapitalOne Quicksilver One - Small CL (2.5K) that doesn't grow much and my utilization is low (so it won't likely grow).  High interest rate.  Have had about a year.

I know that closing these would ding my scores, but raise my AAoA, right?   

[M_Smart007]

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@myquestionsfico wrote:

I've got about 10 cards.  I am thinking of closing a couple of ones that I don't use much:

1.  Amex Platinum - Annual fee is super high, and other than travel (which is obviously curtailed now and for a while into the future), I don't see a lot of benefits.  The card renews in August (have had it less than a year), I believe, so I would consider closing when the fee hits.

2.  Amex Everyday - Just not using it much, and I have an Amex Skymiles and Optima that serve me well.  Have had about a year.

3.  CapitalOne Quicksilver One - Small CL (2.5K) that doesn't grow much and my utilization is low (so it won't likely grow).  High interest rate.  Have had about a year.

I know that closing these would ding my scores, but raise my AAoA, right?   

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Would not raise your FICO8 AAoA ..

I would be hesitant to close any Amex less than one year old. You don't want to get on the naughty list. JMO

[NRB525]

While travel is curtailed for now, that isn't the long term. 
If your Platinum renews in August, I suggest the more relevant question is, do you travel throughout the year anyhow? 

Maybe the Delta card meets your expectations and if so, that may be enough for your situation. 

Closing AMEX in the first year, I agree is not a good idea for a long term relationship with AMEX.