Should I cancel these?

[Anonymous]

Hello all,

I need some advice on two of my cards that have af's. Both af's are 49.50. I have been credit buiding, and now I'm in okay shape. I was wondering if I should cancel these due to the annual fee's. I don't plan on buying another home for a few years, and my car is paid for and in good shape. I know we aren't neccessarily suppose to cancel cards, but they will only credit me half on each one, and I'm a little annoyed since I have never been late, and I can't get a cli either.

Orchard bank mastercard: opened in 2005, $24.50( they credited half of the af)/ $1600 ( won't give me a cli)

Orchard bank visa: opened in 2007, $100/ $1550( no cli on this one either)

Capital one visa: opened in 2007, $0/1050 no af

Amex zync: opened 2010, $0

[Anonymous]

I'm an expert by no means but from what I understand is that canceling the cards will take that available credit away so you have to consider what that may do to your utilization. It doesn't seem you have high utilization so you may not have to worry about that too much. The positive trade lines will still count into you AAoA and show on your report for 10 years I believe (can somebody correct me here if I'm misunderstanding). Closing the cards won't hurt you per say now but will affect it long down the road when the positive trade line falls off. However, with those scores you could do much better than Orchard.

Did you check out this thread already? It's very helpful on this topic. 

http://ficoforums.myfico.com/t5/Credit-Cards/Closing-Credit-Cards/td-p/347190

This is a little summary of the thread:

"In the short-term, there should be no adverse affect to your FICO scores, average age of accounts, or the length of your credit history, provided there is no increase in your util% calculations after you close any CC(s). In the long-term, a CC in good standing (nothing derogatory reporting) with a $0 balance will generally be deleted from your CRs (credit reports) after 10 years. Once this account is deleted, you lose the history and age of this TL and this might lower your scores."

[Anonymous]

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@Anonymous wrote:

Hello all,

I need some advice on two of my cards that have af's. Both af's are 49.50. I have been credit buiding, and now I'm in okay shape. I was wondering if I should cancel these due to the annual fee's. I don't plan on buying another home for a few years, and my car is paid for and in good shape. I know we aren't neccessarily suppose to cancel cards, but they will only credit me half on each one, and I'm a little annoyed since I have never been late, and I can't get a cli either.

Orchard bank mastercard: opened in 2005, $24.50( they credited half of the af)/ $1600 ( won't give me a cli)

Orchard bank visa: opened in 2007, $100/ $1550( no cli on this one either)

Capital one visa: opened in 2007, $0/1050 no af

Amex zync: opened 2010, $0

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I would cancel the Orchard Visa and keep the Orchard MC for another year or more.   It is your oldest card and highest limit.  And I think 3 open cards is the minimum you should consider.   

[andre181]

I thought I would just throw in my $.02.

It would keep both cards until the next time the AF's come due, then cancel at that time. 

In the mean time, I would app for 3 new prime-ish cards, which ones you app for are your choice, do some research. I would recommend Citi Forward, Any of the Barclaycard cards, and either a card from whatever bank you bank with or a local CU.

For the Barclaycard, I would try for the Apple Financing Visa, many people have been having great success with approvals and recons with decently high CL's. They also only pull TU, which looks to be your highest score.

[smallfry]

I would try to get a credit card with Penfed if you have decent income. 

[Anonymous]

Thanks for the advise. I think I am going to do a combination of all the advice given. I will keep them until the next af's come around. That is enough time for both of my inqiries and final baddie to fall off yaaaay!!!! Then I will app for better cards.

[Anonymous]

Good plan!