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Credit Card Closure

DomaneRider
Established 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
Frequent 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
Community Leader
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: 19.7k
Amex Cash Magnet: 18k
Citi DC: 7.7k
Fidelity Visa: 2k
Apple Card: 1.5k
Message 3 of 10
DomaneRider
Established Member

Re: Credit Card Closure

Thank You.  Just need to stay patient.  

Message 4 of 10
SUPERSQUID
Frequent 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 500/ kohls 1500/ discover 3k /mercury 3350 /ollo 600 /mission lane 1050 /big lots 750/ ikea 750/ firestone 2800 /legacy 2000 /first savings bank cc 2000/ cap1 QS 1800/ cap 1 savor one 3k /fingerhut 1950/ comenity rewards mc 1k
Message 5 of 10
Rudy1
Frequent 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 | QuickSilver One | Kohl’s | BBT Spectrum Cash Rewards | BBT Bright | PenFed Gold Visa | NFCU CashRewards | NFCU More Rewards | NFCU Platinum Visa | AMEX BCE | Verizon Visa | Wells Fargo Active Cash | Amazon Prime | OverStock
Starting Scores 05/2019: EQ:519, EX:525, TU:574
Message 8 of 10
DomaneRider
Established Member

Re: Credit Card Closure

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

Message 9 of 10
HeavenOhio
Community Leader
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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