Dont know if I should close this card. Dont want negitive effects....

[JasonBourneOfCredit]

My first credit card. Had it 2.5 yrs. Secured $200

They now charge $50 annual fee. I dont use it. Should I close it?

The issue is I'm afraid if I close it my somewhat thin file will be thinner.  Or will it continue to report for years that it is a good account? Just confused on what happens if I close it because I heard closing your oldest card is bad.

[Anonymous]

There's a sticky thread at the top that gives all of the details of the effects of closing cards.  Based on the info you posted, I would recommend closure to avoid the annual fee.

[bichonmom]

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@JasonBourneOfCredit wrote:

My first credit card. Had it 2.5 yrs. Secured $200

They now charge $50 annual fee. I dont use it. Should I close it?

The issue is I'm afraid if I close it my somewhat thin file will be thinner.  Or will it continue to report for years that it is a good account? Just confused on what happens if I close it because I heard closing your oldest card is bad.

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What other CCs do you have? You said that you're concerned your file will be thinner, so it seems like you don't have many CCs. Yes, you're right. It will report for 10 years, but it will report as a CLOSED account. So, your AAoA won't be immediately affected, but your util will. And creditors will see one less open/active account building history.

That's a hefty AF and a low CL. It really boils down to what other CCs you have. If you have enough in your file, then fine. Close it. But if you don't, then you might want to app for a new CC before closing this one.

[JasonBourneOfCredit]

My other cards, as requested.

Cap 1 500 limit  1% util

Orchard 300 limit  25% util

Firestone store card 2200 limit  0% util

And a 4 yr old car payment, 6 months to go. $1200 bal

[pipeguy]

Considering your sig score (721), I'd app for something like the Capital One Green cash for average Credit Card or any other "basic" MC/Visa. If approved, kill the secured card. Frankly considering the $50 fee for a $200 secured card, if you can't get something else I'd go for a different secured card if need be. If your actual Fico score is 721 you really should not have an issue opening a couple of decent CL cards rather than any secured card. (IMO of course).

[chromonso1]

~~edit just saw your details~~

Need more details.

What is your next oldest account? How many other accounts do you have?  Does/can your lender graduate the card into an unsecured product? 

Normally the only time you would close a card of any type is because of the AF. This being your oldest account makes it sort of a trade off.

I'd stick with it for atleast another year or two just because that'll help your AAoA. 

[andre181]

I would definitely close it. $50 AF is too high IMO

There will be little to no effects in the short term. The card will still report on your CR for 10 years.

The only negitive effects will be a reduction in your total available credit, which only matters if  you carry balances on your cards.

[JasonBourneOfCredit]

As requested, the next oldest acct is the Orchard, I think, at about 1.5 yrs old.

I need my score to be in TIPPY TOP shape by this august when I get a new (used) car. So, 6 months. Minimum 730 FICO is my goal.

[bichonmom]

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@JasonBourneOfCredit wrote:

My other cards, as requested.

Cap 1 500 limit  1% util

Orchard 300 limit  25% util

Firestone store card 2200 limit  0% util

And a 4 yr old car payment, 6 months to go. $1200 bal

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How long have you had the other CCs listed above?

[JasonBourneOfCredit]

Cant figure out how to quote.

Orchard is 1.5 yrs old. Cap is about 1.3yrs old. Firestone is about 1.1 yr old.

Never late on anything ever. I'm in good shape, just dont want to shoot myself in the foot. Would like to add the $200 to savings.