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Safely Cancelling Cards

TwilightSymphonie
Frequent Contributor

Safely Cancelling Cards

If we assume AAoA wont be harmed nor utilitzation, is there a reason really to not close cards that are barely used? I have quite a few that serve me no benefit and I rarely if ever use and while I can keep them zeroed, eventually the creditor will close them on their own unless I remember to pull them out once in a while and charge on them.

















Message 1 of 12
11 REPLIES 11
kdm31091
Super Contributor

Re: Safely Cancelling Cards

I think people over stress about closing accounts. Generally speaking it’s fine to close ones you no longer need. The factors that are impacted by it are minor, and/or temporary (utilization) unless it’s your only card. When you have several you can close unwanted ones with no issue IMO.
Message 2 of 12
Anonymous
Not applicable

Re: Safely Cancelling Cards

If there's no annual fee there's little reason to close the card, unless you really want to.  The issuer will close it eventually if it goes unused too long.  One benefit to closing is you no longer have to worry about fraud on the account, it's one less to keep an eye on even if it's unused and zeroed.

 

Closed accounts report for (up to) 10 years, so AAoA won't be affected.  What will be affected is your total credit lines as far as utilization% goes.  If closing a card would bump your utilization up too high, your scores will drop, at least until you pay things down and get utilization down again.  If the card being closed has a small limit relative to your total, it won't make much difference at all... or if your utilization is low to begin with.

 

 

 

Message 3 of 12
TwilightSymphonie
Frequent Contributor

Re: Safely Cancelling Cards

Its definitely something I have to look at, but I am wanting to simplify my life a bit and having 16 lines with 2 more on the way in January (overdraft line and loc at citi) I am hoping to kill a few I dont use. The usbank plat will be closed when I xfer its credit line to the cash+ card so thats one. Freedom offers me nothing really. a 0.5 percent cash back more compared to amazon visa on some charges.. others I get more on prime and in that case, I can just use my double cash card instead anyway. blispay i was also thinking, since it doesnt even report to 2 CB anyway, and its unusable still which after nearly a year, I am thinking they are done.

















Message 4 of 12
Anonymous
Not applicable

Re: Safely Cancelling Cards


@TwilightSymphonie wrote:

Freedom offers me nothing really. a 0.5 percent cash back compared to amazon visa on some charges.. others I get more on prime and in that case, I can just use my double cash card instead anyway.


Freedom or Freedom Unlimited?  Your sig says Unlimited, but if you have Double Cash, you probably don't need FU... maybe PC it to another card like Freedom for the 5% categories?

 

Otherwise, you might as well close it.  You have another Chase card that apparently serves you better anyway.

 

Message 5 of 12
TwilightSymphonie
Frequent Contributor

Re: Safely Cancelling Cards

Thats a good idea!

















Message 6 of 12
NRB525
Super Contributor

Re: Safely Cancelling Cards


@Anonymous wrote:

@TwilightSymphonie wrote:

Freedom offers me nothing really. a 0.5 percent cash back compared to amazon visa on some charges.. others I get more on prime and in that case, I can just use my double cash card instead anyway.


Freedom or Freedom Unlimited?  Your sig says Unlimited, but if you have Double Cash, you probably don't need FU... maybe PC it to another card like Freedom for the 5% categories?

 

Otherwise, you might as well close it.  You have another Chase card that apparently serves you better anyway.

 


This, PC to Freedom. Chase cards are a different category, and if you have one it is best to convert it into a more-useful card due to 5/24.  

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
Message 7 of 12
TwilightSymphonie
Frequent Contributor

Re: Safely Cancelling Cards

Thats a good idea I will call them today and see if they can convert it! ty!

















Message 8 of 12
calyx
Super Contributor

Re: Safely Cancelling Cards

If there's no AF and you can't transfer the limits to another card (and it's not a storecard), I would just sock-drawer it until the FI closes the card.  There's nothing wrong with letting the bank close it, and you would maximize age benefits (over closing it yourself).



F8 EQ: 809 | EX: 802 | TU: 805 | Accounts: 1/6 4/12 6/24
Happy practitioner of AZE7or8or9or10 | Team Finances > FICO
Message 9 of 12
TwilightSymphonie
Frequent Contributor

Re: Safely Cancelling Cards

Hm it used to be, or at least what I heard, as a card showing as closed by institution is considered a bad mark though. Is that not true?

















Message 10 of 12
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