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Consequences of Closing Cards?

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Established Contributor

Consequences of Closing Cards?

How do lenders view you when you close a credit card account with them? Does it affect future applications? Account is in goodstanding, always PIF on time, just the card doesn't work for me anymore, and I'd rather not have it hanging out there.

 

Garden Gnome
11 CC | 1 PLOC | 0 MTG | 0 AUTO
No inquiries since: 2019-11
No new accounts since: 2020-01
Message 1 of 5
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Established Contributor

Re: Consequences of Closing Cards?

I have closed 4 cards since July.  No negative impact.  If you don't use it and are covered by other CL cards, then close it.  

just never your oldest.  

July 31/2019. EX-712. EQ-704. TU-726
Dec 16/2019. EX. 721. EQ. 723. TU 746
May 17/2020 EX. 733 EQ. 729 TU 753

July 5/2020 EX. 726 EQ. 720 TU 745
Inq. EX 8 EQ 4 TU 3


Cards
Amex BCP $20k
Apple GS $15k
BMW/Elan $2.5k
Cap1 QS $16.7k
Chase Amazon $13.6k
Chase United Club Infinite $20k
Citi DC $13.5k
CreditUnion1 $9k
DiscoverIT $20.5k
HSBC Gold - $10.5k
Wells Sig Visa $12k
Message 2 of 5
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Super Contributor

Re: Consequences of Closing Cards?

The only time I would worry about it is in situations where you recieved a signup bonus. It doesn't make you look good if you close the card shortly (or even a few months) after that, and Amex, for example, has really cracked down on people doing that and will take back the points. Even if a bank doesn't forbid it so strictly, it certainly isn't something they want to see people do. If you did recieve the bonus, and the card has no AF (or AF already paid for the year), just keep it until the year mark, then close it.

 

If no signup bonus, I really don't think it matters as much. If it serves no purpose, and your utilization won't skyrocket with the loss of the limit, close away.

Message 3 of 5
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Valued Contributor

Re: Consequences of Closing Cards?

I doesn't matter.  The computer is doing all of the thinking and unless someone went to manually mark the file for decline in the future it won't impact your ability to get another one down the road.  

 

Bonuses are different but, you already collected and the expectation shouldn't be that there is going to be another one paid out but, if they do then it's a present.

 

If it's useless outside of the normal objections of age, CL, etc. then just give it a double tap and move on.

500K+ TCL / 800+ FCOs
Message 4 of 5
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Valued Contributor

Re: Consequences of Closing Cards?

If there is no path for a useful PC, close it. If you were a good customer, you might get more offers from them for a different card. Maybe one that is useful (but can't be PC'd). 

 

It's a little less expensive for them to recruit a customer for a new product if they already know the customer and the customer knows them.

Scores, HPs/24 mos. (updated 4/08/20):
    Experian FICO Score 8 = 827, 2/24
    Experian FICO Score 9 = 834, 2/24
   TransUnion = 832, 1/24
    Equifax = 834, 0/24

Total 2019 rewards, incl. offers/deals = $1,709.07
Avg. rewards rate, incl. offers/deals = 3.92%

Total CL: $264,500

Cards (hover over for CL | interest rate | Date Opened):
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