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Might be time to axe Citi...

dacv01
Contributor

Might be time to axe Citi...

Have been thinking on this for a while- I may cancel my Citi Secured card. I opened it at the end of 2019. It was a great first card to build with. (DP- was recovering from ID theft, scores were very low. Recently I am now in the 700s, under 15% utilization monthly. Was approved for a mortgage last year, 45K+ auto loan, and have really positively changed all of my credit factors.)  However, recently I have no use for it. I was not eligible for graduation for the past 2 periods. I used the card heavily for a year, always made multiple payments, ect. With my recent approval of Apple Card, including CLI Monday,  Amex Platinum, Gold, and last week the Blue Cash Preferred, I may sever ties with Citi. I know this will effect my score, but I wanted to get some general feedback from the more veteran members. 




> 5 Inquiries, AAoC 4 years, AoOA 7 years, 11 months as of September 2021
Message 1 of 7
6 REPLIES 6
PNWRambler
Contributor

Re: Might be time to axe Citi...

Once you've got a few better cards it's usually time to let the sub-prime cards go, it's served its purpose.  The history of that card will remain on your account for 7-10 years after closing.  So it won't affect your AAoA for a while, or your history of on-time payments and the like.  The only thing it will affect right away is your overall utilization and what percentage of your revolving accounts are carrying a balance.  If you keep your utilization low, you probably won't see any major changes to your credit score.  

Message 2 of 7
FinStar
Moderator

Re: Might be time to axe Citi...


@dacv01 wrote:

Have been thinking on this for a while- I may cancel my Citi Secured card. I opened it at the end of 2019. It was a great first card to build with. (DP- was recovering from ID theft, scores were very low. Recently I am now in the 700s, under 15% utilization monthly. Was approved for a mortgage last year, 45K+ auto loan, and have really positively changed all of my credit factors.)  However, recently I have no use for it. I was not eligible for graduation for the past 2 periods. I used the card heavily for a year, always made multiple payments, ect. With my recent approval of Apple Card, including CLI Monday,  Amex Platinum, Gold, and last week the Blue Cash Preferred, I may sever ties with Citi. I know this will effect my score, but I wanted to get some general feedback from the more veteran members. 


If you've had the secured card for quite sometime and has served its purpose, then it's ok to part ways.

 

There shouldn't be any significant changes with scoring since the closure will simply reduce a negligible amount of your total available credit. As far as AAoA, there won't be any impacts for at least ~10 years (give or take). The closed account will still be factored into your AAoA metrics until it drops off your CRs.

 

Since you already have other useful CCs, it's ok to move on.

Message 3 of 7
ntenseone
New Contributor

Re: Might be time to axe Citi...

I don't suppose this is the type of product that can be PCd to something more useful for you, eh?

FICO - 821 on 2/5/22
FICO 8 - 799 on 2/5/22
Vantage Score 3.0 - 816 on 3/2/22
Vantage Score 4.0 - 776 on 2/1/22
Message 4 of 7
NoMoreE46
Valued Contributor

Re: Might be time to axe Citi...

Yes, you can let it go.  Do you especially need a MC as it appears you won't have one if you kill the card? 

Stepping back a little, have you inquired with Citi if it is willing to graduate this card?

 

Amazon Prime Store 10,000
Apple Card GS 14,000
CapOne QS 30,000
CapOne Savor 5,000
Citi Custom Cash 8,000
Discover It 20,500
Target Redcard MC 13,000
WF Active Cash 17,000
WF Propel 21,000
————————————-
Elan Smart Business Rewards 10,000
Message 5 of 7
SouthJamaica
Mega Contributor

Re: Might be time to axe Citi...


@dacv01 wrote:

Have been thinking on this for a while- I may cancel my Citi Secured card. I opened it at the end of 2019. It was a great first card to build with. (DP- was recovering from ID theft, scores were very low. Recently I am now in the 700s, under 15% utilization monthly. Was approved for a mortgage last year, 45K+ auto loan, and have really positively changed all of my credit factors.)  However, recently I have no use for it. I was not eligible for graduation for the past 2 periods. I used the card heavily for a year, always made multiple payments, ect. With my recent approval of Apple Card, including CLI Monday,  Amex Platinum, Gold, and last week the Blue Cash Preferred, I may sever ties with Citi. I know this will effect my score, but I wanted to get some general feedback from the more veteran members. 


I would hold onto it.  I wouldn't sever my ties with Citi. 


Total revolving limits 689000 (587000 reporting) FICO 8: EQ 718 TU 721 EX 698

Message 6 of 7
FinStar
Moderator

Re: Might be time to axe Citi...


@SouthJamaica wrote:

@dacv01 wrote:

Have been thinking on this for a while- I may cancel my Citi Secured card. I opened it at the end of 2019. It was a great first card to build with. (DP- was recovering from ID theft, scores were very low. Recently I am now in the 700s, under 15% utilization monthly. Was approved for a mortgage last year, 45K+ auto loan, and have really positively changed all of my credit factors.)  However, recently I have no use for it. I was not eligible for graduation for the past 2 periods. I used the card heavily for a year, always made multiple payments, ect. With my recent approval of Apple Card, including CLI Monday,  Amex Platinum, Gold, and last week the Blue Cash Preferred, I may sever ties with Citi. I know this will effect my score, but I wanted to get some general feedback from the more veteran members. 


I would hold onto it.  I wouldn't sever my ties with Citi. 


Holding on to the card is really of no benefit and counterproductive if the OP already has other, flexible products.

 

This isn't going to "sever ties" with Citi. It's not like the OP had a negative relationship with Citi. Plenty of members, and you've been around long enough to witness this, have been able to close their secured Citi cards and obtain unsecured Citi legacy cards down the road. So, the "sever ties" statement is misleading at best since countless folks have successfully done so. Citi doesn't penalize folks for closing accounts in good standing in addition to the fact that the closed account will remain factored in AAoA metrics for a long time.

Message 7 of 7
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