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Should I close credit cards?

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Anonymous
Not applicable

Should I close credit cards?

Hello,

 

A few years back, I began the process of rebuilding my credit.  I acquried 3 cards (First Premier, Capital One, and Credit One) all within about a week of one another.  Shortly thereafter, I obtained an Indigo card.  My limit with Indigo ($300) cannot be increased and they charge an annual fee of $99.  First Premier has an annual feel plus a monthly maiantance fee, and an outrageous percentage rate of 36%.  I did get a second First Premier (mistake!) and a card called Destiny from the same lender as Indigo.  The same applies with them: annual fees, a maintance fee.  So, that's 4 cards total I want to close.  Problem is, First Premier is my oldest account on my credit history, Indigo follows a couple of months behind.  The second First Premier is 1 year, 9 months old, and the Destiny card is about 1 year, 2 months old.  I am tired of all the fees.  First Premier is paid off, but I was charged a monthly maintanence fee of $6.25.  Indigo is paid off as well.  The second First Premier has about $120 balance and Destiny's balance is $50. 

 

I was recently approved for a couple of rewards cards ($2,000 & $2,500).  The $2000 limit on one is more than all four of the aforementioned cards combined.  I have worked on my credit a lot and have seen great improvements.  I just don't want to have my scores drop because of closing this number of accounts with two being the oldest.  Any advice?

 

Thank you in advance

Message 1 of 14
13 REPLIES 13
MileHigh96
Established Contributor

Re: Should I close credit cards?

From what I have read here on the forums, closed accounts that were in good standing will still count towards your AAoA, so it won't affect your scores in that regard (if I'm wrong in that regard, hopefully someone will correct me on that).  Plus, getting rid of all those fees will be a good thing IMHO.  So personally, I would close all those and you won't lose anything other than having to pay those stupid fees.

BK7 discharged - 06JUL2021
Loans:

Revolving Accounts (in the order they were opened):

Closed accounts:
Message 2 of 14
Yasselife
Valued Contributor

Re: Should I close credit cards?

@Anonymous I think about closing some of mine every morning. If you close cards today and open a prime one in a short future(6mo), that card will be 10yrs old by the time your closed cards fall off. It's always our subprime cards that are our oldest. I'd tell you for now that if it has annual fee then get rid off it.


Message 3 of 14
FireMedic1
Community Leader
Mega Contributor

Re: Should I close credit cards?

@AnonymousClosed accounts will show on your reports until 10 yrs after the closing date. Any of them with ungodly fees kick em to the curb. You seen the saying on here finances over FICO. Congrats on the non vulture card approvals. Keep 1 of them so you sit at 3 cards and have only 1 report a balance or AZEO for now. Wait 6 months and then go for your next wanted card. Then close out the remaining starter card. Step by step you'll get there.


Message 4 of 14
SoCalGardener
Valued Contributor

Re: Should I close credit cards?

Personally, I'd close every single one of them--*after* obtaining at least one 'good' card. Those annual fees and APRs are OUTRAGEOUS, especially for cards like those. My Amex Blue Cash Preferred has a $95 AF, but you know what goes along with that? Yeah, all sorts of great benefits! In other words an AF is not an AF is not an AF.....

 

As others have noted, your good payment history will stay on your reports for awhile, so that's not really an issue. Plus your credit is still very new (as credit goes), so I don't think closing them will hurt you at all.

 

Maybe close all but one, hold on to that one card until you're nicely settled with at least one good card, then close it, too.

Amazon Prime Store CardAmerican Express Blue Cash Preferred CardAmerican Express Everyday CardBank of America Customized Cash VisaCapitalOne Quicksilver MastercardCapitalOne Quicksilver VisaCapitalOne Walmart Rewards MastercardChevron Texaco CardCiti Double Cash MastercardDiscover More CardJCPenney Gold MastercardOverstock.com CardSportsmans Guide Rewards VisaSynchrony Home Card
Message 5 of 14
SouthJamaica
Mega Contributor

Re: Should I close credit cards?


@MileHigh96 wrote:

From what I have read here on the forums, closed accounts that were in good standing will still count towards your AAoA, so it won't affect your scores in that regard (if I'm wrong in that regard, hopefully someone will correct me on that).  Plus, getting rid of all those fees will be a good thing IMHO.  So personally, I would close all those and you won't lose anything other than having to pay those stupid fees.


Yes. Dump them and don't think twice about it.

 

They will continue to be factored into your aaoa and aooa for many years 

 

By the time they drop out your other accounts will be plenty old enough 


Total revolving limits 569520 (505320 reporting) FICO 8: EQ 696 TU 689 EX 676




Message 6 of 14
SUPERSQUID
Valued Contributor

Re: Should I close credit cards?


@Anonymous wrote:

Hello,

 

A few years back, I began the process of rebuilding my credit.  I acquried 3 cards (First Premier, Capital One, and Credit One) all within about a week of one another.  Shortly thereafter, I obtained an Indigo card.  My limit with Indigo ($300) cannot be increased and they charge an annual fee of $99.  First Premier has an annual feel plus a monthly maiantance fee, and an outrageous percentage rate of 36%.  I did get a second First Premier (mistake!) and a card called Destiny from the same lender as Indigo.  The same applies with them: annual fees, a maintance fee.  So, that's 4 cards total I want to close.  Problem is, First Premier is my oldest account on my credit history, Indigo follows a couple of months behind.  The second First Premier is 1 year, 9 months old, and the Destiny card is about 1 year, 2 months old.  I am tired of all the fees.  First Premier is paid off, but I was charged a monthly maintanence fee of $6.25.  Indigo is paid off as well.  The second First Premier has about $120 balance and Destiny's balance is $50. 

 

I was recently approved for a couple of rewards cards ($2,000 & $2,500).  The $2000 limit on one is more than all four of the aforementioned cards combined.  I have worked on my credit a lot and have seen great improvements.  I just don't want to have my scores drop because of closing this number of accounts with two being the oldest.  Any advice?

 

Thank you in advance


 I am in the same boat as you, over the last 3 months i closed 3 cards that had annual fees plus monthly fees starting this month. reflex 1050 cl, applied bank, 300 cl and first digital 300 cl .

Lately i have been getting cards with higher starting limits and rewards like Discover and Mercury.

I still have 3 cards that have an af but no monthly fees, Legacy 1500 cl {49 af}, first savings bank cc 1500 cl {49 af}, and mission lane 1050 cl {59 af}. 

I really didnt see much of a difference in my score for closing the first 3. i started rebuilding in sept 2020.

 

PS- pay them to zero before you close them

{ BK7 DC 12/2019 } target 2800/ kohls Visa 7000/ discover IT cb 5800 / 2nd discover IT cb 6000/mercury 4100 /legacy 3500 /HUE cc 3500/ cap1 QS 5000/ cap 1 savor one 3100 /Bread rewards Amex 4650, Penfed PCR signature visa 10k/ penfed gold 5600 /NFCU signature visa cash rewards 21700/bread cashback amex 8000

>/ nfcu platinum 15k, BABY NEEDS NEW SHOES !!!!!
closed-- reflex, applied bank, first digital, mission lane, ikea, fingerhut, big lots, valero gasoline, ollo, more to come
Rebuilding since September 2020
who i burned - chase, cap 1, TD bank, Sync, were the biggies
Income 40k
Total utilization above 50 pct.
Ficos ,most are slightly above 700, the 9's slightly higher than the 8's

TCL - about 110k
Retired since 2017
Message 7 of 14
Aim_High
Super Contributor

Re: Should I close credit cards?

Those cards are like leeches on your finances, @Anonymous!  But you're smart to think twice before just closing them.  For a rebuilder, even as ugly as they are, they can serve a purpose.  By the grace of God, I've never to resort to cards like that since I never had to rebuild, but those types of predatory cards need to go when your profile has improved. 

 

To clarify, there is no guarantee those cards will continue to report to the CRBs for ten years.  The cards may drop off tomorrow, report for five years, ten years, or even longer.  I've had cards do any of those.  That said, in most cases they do continue to report for around ten years, but there is no universal standard.  Be prepared for either outcome even though you will normally not take an instant hit on AAoA by closing.    However, in the grand scheme of things, we're talking about cards that are less than two years old.  You aren't closing a ten year old card, so it's a small and temporary bump-in-the-road at the worst case. 

 

You mentioned fees on the First Premier and Indigo/Destiny.   Do you pay any fees on the Capital One or Credit One cards?  If so, have you contacted them to see if they would waive the fee or convert those cards?    If any of those cards has or can be converted to a product that doesn't cost you anything, I definitely would keep one of them open for the medium term.  Put some small charges on it to keep it active and let it help your AAoAs until your prime cards age and you add a few more. Then, in five or ten years, close the last one.   But if all of them are costing you fees, close them all immediately.  Echoing the above, finances above FICO. 


Business Cards


Length of Credit > 40 years; Total Credit Limits >$936K
Top Lender TCL - Chase 156.4 - BofA 99.9 - CITI 96.5 - AMEX 95.0 - NFCU 80.0 - SYCH - 65.0
AoOA > 31 years (Jun 1993); AoYA (Oct 2024)
* Hover cursor over cards to see name & CL, or press & hold on mobile app.
Message 8 of 14
Anonymous
Not applicable

Re: Should I close credit cards?

I'm too in the same boat. I have First Premier,Milestone,Indigo and Credit One. With exception of Credit One I'm gonna close Milestone and Indigo. Then eventually FP.  I have Discover,Cap One 

Message 9 of 14
Gollum
Established Contributor

Re: Should I close credit cards?


@Anonymous wrote:

Hello,

 

A few years back, I began the process of rebuilding my credit.  I acquried 3 cards (First Premier, Capital One, and Credit One) all within about a week of one another.  Shortly thereafter, I obtained an Indigo card.  My limit with Indigo ($300) cannot be increased and they charge an annual fee of $99.  First Premier has an annual feel plus a monthly maiantance fee, and an outrageous percentage rate of 36%.  I did get a second First Premier (mistake!) and a card called Destiny from the same lender as Indigo.  The same applies with them: annual fees, a maintance fee.  So, that's 4 cards total I want to close.  Problem is,   The secFirst Premier is my oldest account on my credit history, Indigo follows a couple of months behind.ond First Premier is 1 year, 9 months old, and the Destiny card is about 1 year, 2 months old.  I am tired of all the fees.  First Premier is paid off, but I was charged a monthly maintanence fee of $6.25.  Indigo is paid off as well.  The second First Premier has about $120 balance and Destiny's balance is $50. 

 

I was recently approved for a couple of rewards cards ($2,000 & $2,500).  The $2000 limit on one is more than all four of the aforementioned cards combined.  I have worked on my credit a lot and have seen great improvements.  I just don't want to have my scores drop because of closing this number of accounts with two being the oldest.  Any advice?

 

Thank you in advance


Your unwanted credit cards are all essentially the same age, and they are all relatively new, as are your recent rewards cards. Credit cards are supposed to report to the big three credit bureaus (Experian, TransUnion, and Equifax) for ten years after they are closed, so your closed, unwanted credit cards should continue to help your FICO scores for ten years.

 

My advice is to (properly) close all your unwanted credit cards. Pay them off to a zero balance first.

Credit Scores: (FICO 8) 850 Experian March 2025, 846 TransUnion February 2025
Credit Cards (newest to oldest): NFCU Visa Platinum $25,000 | BECU Cash Back Visa $10,000 | American Express BCE $9000 | Simmons Bank Visa $7500 | Capital One Quicksilver Visa Platinum (PC/upgrade from No Hassle Miles Rewards Visa Platinum) $1800
Message 10 of 14
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