Questions: Closing/Canceling Credit Cards

[Anonymous]

I had some general questions and concerns about closing a credit card that maybe some of you guys can help me with:

How soon should you close out a card  and what is recommended in terms of timing to close out a card out for it not to look frowned upon? I read some articles that said you should keep it open for 6months to a year before closing, why is that?. So if someone opens a card and closes it right away or very soon after, is that a bad thing? Is there any diffrence or does it even matter? 

Also, does having a closed card account on your report generally a bad thing? Do lenders or Underwriters see a closed card account and automatically look down on it?

Should you always request to have it marked as  " closed by consumer request" instead of letting it say " account closed by creditor" ? 

Lastly, does closing a card out or closing it too soon after opening it  RUIN your relationship with that lender? Will you still be able to get a future card with them even if you closed out a previous card? Any blacklisting for closing a card too soon (possible churning)  or closing it all? 

Any info is much appreciated it! Thanks. 

[Anonymous]

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@Anonymous wrote:

I had some general questions and concerns about closing a credit card that maybe some of you guys can help me with:

How soon should you close out a card  and what is recommended in terms of timing to close out a card out for it not to look frowned upon? I read some articles that said you should keep it open for 6months to a year before closing, why is that?. So if someone opens a card and closes it right away or very soon after, is that a bad thing? Is there any diffrence or does it even matter?  - the reason that that is recommended is because you don't want a creditor to think you are just reward chasing .  Opening a card, using it to meet the spend requirement and getting the bonus and closing it shortly thereafter can look bad.  Doing it once probably won't hurt you but if you make it a pattern with a company like Chase for example, they may at best frown upon it or worse take some kind of adverse action.

Also, does having a closed card account on your report generally a bad thing? Do lenders or Underwriters see a closed card account and automatically look down on it? - doesn't hurt you to have cards closed on your report unless there was a large number that are shown as closed by creditors.  That then could look bad on a manual review

Should you always request to have it marked as  " closed by consumer request" instead of letting it say " account closed by creditor" ? - a card or two and it makes no difference.  As above, you wouldn't want a large number of accounts to be shown as closed by creditor.

Lastly, does closing a card out or closing it too soon after opening it  RUIN your relationship with that lender? Will you still be able to get a future card with them even if you closed out a previous card? Any blacklisting for closing a card too soon (possible churning)  or closing it all? - See answer to first question.  One or maybe two won't hurt.  Do it a lot and you're asking for unwanted attention. 

Any info is much appreciated it! Thanks. 

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[Anonymous]

Also, 99% of the time there isn't any reason to close out a card before it's a year old.  If it has.a AF and you don't need it any longer, close it on its anniversary.  If no AF, just leave it open as it is only helping overall utilization, etc.

[Gmood1]

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@Anonymous wrote:

I had some general questions and concerns about closing a credit card that maybe some of you guys can help me with:

How soon should you close out a card  and what is recommended in terms of timing to close out a card out for it not to look frowned upon? I read some articles that said you should keep it open for 6months to a year before closing, why is that?. So if someone opens a card and closes it right away or very soon after, is that a bad thing? Is there any diffrence or does it even matter? 

Also, does having a closed card account on your report generally a bad thing? Do lenders or Underwriters see a closed card account and automatically look down on it?

Should you always request to have it marked as  " closed by consumer request" instead of letting it say " account closed by creditor" ? 

Lastly, does closing a card out or closing it too soon after opening it  RUIN your relationship with that lender? Will you still be able to get a future card with them even if you closed out a previous card? Any blacklisting for closing a card too soon (possible churning)  or closing it all? 

Any info is much appreciated it! Thanks. 

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I've closed cards within the six months or less period. And I've closed at least one card before it ever arrived in the mail. Neither made zero difference in the ability to obtain CC's or other credit. It will report as closed by consumer. I've closed cards with Chase, Penfed, Capital One, Elan , Barclays and Amex. With some of those lenders three to four cards each.

I closed mine mainly during CL consolidations or because the limit didn't grow or I got a toy limit to began with. Two were closed because I found the cards not to be as useful.

[Anonymous]

I never had a closed credit card on my report.........its a little bothersome breaking that streak if I close a card and to see that closed account on my report for 10 years...lol

 I guess its not a big deal. 

[austinguy907]

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@Anonymous wrote:

I never had a closed credit card on my report.........its a little bothersome breaking that streak if I close a card and to see that closed account on my report for 10 years...lol

 I guess its not a big deal. 

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You still have the positive history for 10 years, you keep the age under FICO and who cares about Vantage?

The only time it hurts is when you have limited available credit and tend to carry a balance since your utilization would effect your scoring.

Some scoring models like to see XX amoount of accounts to be in the green territory.  

Once you pop your cherry on closing 1 you'll take a deeper look at your remaining cards and probably end up closing out 2-3 more of them in the process and make room for some new ones that catch your eye.

[mitchblue]

It depends on your profile . It probably hurts some, and won't hurt others. That's simple right? 

[Anonymous]

I'm a firm a believer of just keeping the card open if theres no AF and just keep it SD'd. However, theres this one card that irks me and is mentally bothering me just having lol. That's the only reason why im considering closing it out for the hell of it. I'm only hesitant because having a closed CC account on my report bothers me as well  becuase I never had one and my report is clutter free for the most part. I guess Somethings gotta give!

[Anonymous]

Good thoughts in this thread. Good luck whatever you decide to do.

[grillandwinemaster]

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@Anonymous wrote:

However, theres this one card that irks me and is mentally bothering me just having it lol. That's the only reason why im considering closing it out for the hell of it.

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Just out of curiosity, Which card is irking you that much?  My philosophy is if it's causing me stress or discomfort, kill it!

Great advice received in your post so far. 

Best credit wishes to you, no matter what direction you decide to go in.