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Credit Card Closure

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DomaneRider
Valued Member

Credit Card Closure

I just closed out 6 credit cards that were all lower limit cards with an annual fee.  Credit score will probably take a hit, im sitting at 623.  I've had the cards for 2 years.  Hasnt helped my credit score.  I kept 2 cards.  1 with a $2800 limit and the other with $750.  Niether has an anuall fee.  The highest limit on the cards that I cancelled was $800.  I'm getting offers in the mail for higher limits, but I havnt bitten..... YET.  

Message 1 of 10
9 REPLIES 9
Ilinferno
Established Contributor

Re: Credit Card Closure

Understandable with the AF and low limits, plus they'll positively age on your account for a decade while closed so not the end of the world. Good luck in your future apps!

Message 2 of 10
pinkandgrey
Senior Contributor

Re: Credit Card Closure


@Ilinferno wrote:

Understandable with the AF and low limits, plus they'll positively age on your account for a decade while closed so not the end of the world. Good luck in your future apps!


Amen to this. Enjoy your newfound peace of mind, OP. Congrats!

Discover It: 21.5k
Amex Cash Magnet: 18k
Fidelity Visa: 13k
Apple Card: 4.25k
Message 3 of 10
DomaneRider
Valued Member

Re: Credit Card Closure

Thank You.  Just need to stay patient.  

Message 4 of 10
SUPERSQUID
Valued Contributor

Re: Credit Card Closure


@DomaneRider wrote:

I just closed out 6 credit cards that were all lower limit cards with an annual fee.  Credit score will probably take a hit, im sitting at 623.  I've had the cards for 2 years.  Hasnt helped my credit score.  I kept 2 cards.  1 with a $2800 limit and the other with $750.  Niether has an anuall fee.  The highest limit on the cards that I cancelled was $800.  I'm getting offers in the mail for higher limits, but I havnt bitten..... YET.  


You are doing the right thing. during a rebuild hopefully you get better and better cards and its prudent to close the lesser cards. i am also rebuilding and i have a rule, one in one out,.in other words if i get a new card thats a step up i close another. i tend to close them slowly though one at a time.

a few things i do

write down the operators name and id number

i verify with the operator that my balance is zero

i request a confirmation letter from them with the details and closure of the card.

then i paper clip that note to the card and when the confirmation letter comes i staple it to the note and file it

i take the closed card and rubber band it to my other closed cards

to make less of a drastic score hit i wait until i am approved for a new card or a cli on my exsisting cards that equals or surpasses the limit of the card im closing

{ BK7 DC 12/2019 } target 1600/ kohls Visa 7000/ discover IT cb 6500 / 2nd discover IT cb 6000/mercury 4100 / firestone 2800 /legacy 3000 /first savings bank cc 3000/ cap1 QS 5000/ cap 1 savor one 3100 /Bread rewards Amex 4k, Penfed PCR signature visa 10k/ penfed gold 7.5k NFCU >signature visa cash rewards 21700/bread cashback amex 8000

>/ nfcu platinum 15k, BABY NEEDS NEW SHOES !!!!!
closed-- reflex, applied bank, first digital, mission lane, ikea, fingerhut, big lots, valero gasoline, ollo, more to come
Rebuilding since September 2020
who i burned - chase, cap 1, TD bank, Sync, were the biggies
Income 40k
Total utilization around 20 pct depending on my current usage/needs
Ficos in the 680 - 690 range, the 9's slightly higher than the 8's
My vantage scores 708 - 711
TCL - about 110k
Retired since 2017
Message 5 of 10
Rudy1
Established Contributor

Re: Credit Card Closure

Congrats on this part of your rebuild! It's always good to do this imo get rid of card you don't need or want. I closed my Credit 1 and my bucketed Capital One QS and QS1 a while back. I don't miss them.Smiley Happy

>
Goal Cards:
Message 6 of 10
TSlop
Valued Contributor

Re: Credit Card Closure


@Ilinferno wrote:

Understandable with the AF and low limits, plus they'll positively age on your account for a decade while closed so not the end of the world. Good luck in your future apps!


This might be a question for another thread... but assuming the accounts linger for 10 years and then drop off, will you get a credit ding at that point then? Or, if you are opening another card(s) as you close a card, the hit won't be too bad?

Message 7 of 10
Rebuild2019
Valued Contributor

Re: Credit Card Closure

Congratulations 🎉🎈🎊

CARDS: Discover It | Kohl’s | Truist Spectrum Cash Rewards | Truist Bright | CITI Custom Cash | Chase Freedom Flex | Chase Amazon Prime Visa | VACU Cash Rewards Mastercard | Sam’s Club Mastercard | PenFed Gold Visa | NFCU CashRewards | NFCU More Rewards | NFCU Platinum Visa | AMEX BCE | Verizon Visa | Wells Fargo Active Cash | Amazon Prime | NFCU Auto Loan
Starting Scores 05/2019: EQ:519, EX:525, TU:574

CLOSED : Capital One Quicksilver One | OpenSky |
Message 8 of 10
DomaneRider
Valued Member

Re: Credit Card Closure

Nice work.  It's a long slow process.  But I can be patient. 

Message 9 of 10
HeavenOhio
Senior Contributor

Re: Credit Card Closure


@TSlop wrote:

@Ilinferno wrote:

Understandable with the AF and low limits, plus they'll positively age on your account for a decade while closed so not the end of the world. Good luck in your future apps!


This might be a question for another thread... but assuming the accounts linger for 10 years and then drop off, will you get a credit ding at that point then? Or, if you are opening another card(s) as you close a card, the hit won't be too bad?


Your AoOA (age of oldest account) and AAoA (average age of accounts) will drop. But the usual assumption is that the passage of 10 years should make the scoring effect fairly minor because everything else on your report will have aged. We do see some outlier cases, such as an AoOA drop of 20-plus years and the AAoA change that accompanies it. Those would take a bigger hit.

Message 10 of 10
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