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Consequences of Closing Cards?

VanderSnoot
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.

 

Most Recent Inquiry: 2020-10
Most Recent Account: 2021-01
Under 5/24: 2021-05 2021-06-13 (due to differing CRA interpretations of 24 months)
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Message 1 of 5
4 REPLIES 4
RSX
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.  

Dec 16/2019. EX. 721. EQ. 723. TU 746
Dec 29/2020 EX. 729 EQ. 723 TU 746
Apr 12/2021 EX. 735 EQ. 738 TU 759
Inq. EX 4 EQ 2 TU 5 - - CC 5x24, 3x12
Amex BCP $25k - Apple GS $17k - BMW/Elan $5k - Cap1 QS $16.7k - Chase Amazon $13.6k - Chase Bonvoy Boundless $10k - Chase United Club Infinite $26k - Citi DC $14.5k - CreditUnion1 $9k - DiscoverIT $23k - HSBC Gold - $10.5k - Penfed Gold - $12.5k - USBank Cash+ -$20k
Message 2 of 5
kdm31091
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
Obscure-Expert
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
CardNut
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 01/13/21):
    Experian FICO Score 8 = 828, 1/24
    Experian FICO Score 9 = 813, 1/24
   TransUnion = 811, 1/24
    Equifax = 813, 0/24

Total 2020 rewards, incl. offers/deals = $1,388.00

Total CL: $247,000

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