When is the best time to close a card?

[FinStar]

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@FinStar wrote:

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@Anonymous wrote:

That's the thing, I think I'm on Amex's naughty list. I went to apply for the cash magnet and it said if I continued I wouldn't get a SUB. I didn't continue. If they are offering $200 for signing up I want that 🤣

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Which 2 cards were you planning on closing?

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My thoughts are that if you don't want to periodically check them, in the event of unauthorized charges (unless you have real-time fraud alerts), just close them -- out of sight, out of mind.  Reporting-wise, they would still be factored into your AAoA for up to ~10 years (give or take).

[Anonymous]

I check all of my accounts every week because I'm neurotic about things like this. IThe cards I may end up eventually closing don't have the same type of alerts as other cards, if they do then I haven't figured it out yet.  

I was just wondering if it would be more beneficial to show two or more years payment history vs 6 months when the account is closed. 

[GatorGuy]

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@Anonymous wrote:

I check all of my accounts every week because I'm neurotic about things like this. IThe cards I may end up eventually closing don't have the same type of alerts as other cards, if they do then I haven't figured it out yet.  

I was just wondering if it would be more beneficial to show two or more years payment history vs 6 months when the account is closed. 

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Pretty much every card allows you to go and set up a charge alert. I have it set up to text me any time one of my cards is used. Prevents me from having to check them all the time. Ironically Amex only allows you to be notified on charges more than $10. Kind of stupid since many times when a card info is stolen they test for small transactions.

[Anonymous]

The Mercury does, and have the alerts set up. The Mission Lane doesn't. There isn't a place on the web page or in the app. 

[SouthJamaica]

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@Anonymous wrote:

I have searched but haven't found any answers for my situation. 

When is the best time to close a card with zero annual fee. Is it after two years of reporting?

I have upgraded cards, and don't need 2 of my current cards. I'm not concerned with gaining higher credit lines for them and honestly doubt they would grow anyway. For the cards the current credit line more than meets their purpose. 

There aren't any annual fees, but the cards have/will get minimal use. I don't care if they stay in my wallet or not. I have zero issues with the lenders and it's not stressing me out. I just want to know how to make the cards serve a better purpose for my portfolio. Each report the dollar amount of payments made. So wondering when/if I do end up closing the accounts when would be the best time. I do know that they can report for up to 10 years after closing, but closing a relatively new account after opening may hinder growing to cards with better benefits and possible sign up bonuses if I look like a card churner, even though neither account had a SUB and I don't want that. 

--also hope this was posted to the right place. I have replied to posts, but haven't created any posts myself. 

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I don't think there's a best time.  Since they don't stress you out, and don't cost you anything, hold on to them in perpetuity, and use them once in a while just to keep them in the active column.

[SouthJamaica]

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@Anonymous wrote:

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@FinStar wrote:

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@Anonymous wrote:

That's the thing, I think I'm on Amex's naughty list. I went to apply for the cash magnet and it said if I continued I wouldn't get a SUB. I didn't continue. If they are offering $200 for signing up I want that 🤣

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Which 2 cards were you planning on closing?

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The Mission Lane, then the Mercury. 

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Well I don't see anything wrong with dumping those whenever you feel like it.  It won't affect your score.

[MarkintheHV]

I always look at the age of the card, and calculate what the impact will do to the average age of my cards.  A lot of times, closing that account will improve the average age of your cards.

[coldfusion]

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@MarkintheHV wrote:

I always look at the age of the card, and calculate what the impact will do to the average age of my cards.  A lot of times, closing that account will improve the average age of your cards.

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How is that?  FICO algorithms continue to score a closed card for AAoA purposes until it ages out off your report.

[Anonymous]

I'm not overly concerned with the age of the cards. Both are new accounts. I have 14 new accounts, yes you read that right. 14, thanks to impulse control issues with mailers. I don't have an understanding of how age is calculated or how it will be in 10 years if I did close the accounts, but every account was opened so if an account or two was closed (like if synchrony decided to ax me for whatever reason, I have read about that so was aware when applying, but I also applied for things I knew I'd have a strong chance to get given new accounts, and a thin file ) then I'd have enough padding to support losing the accounts. This was my logic as for if it would work idk.

With the Mission Lane they automatically give the Cashback after the statement cuts to the account. Which I like. The Mercury has sent two emails where they would issue a $25 statement credit with $250 spend. The first one I didn't capitalize on the last one I did and waiting for it to be credited (fine print says that it can take two statements to show up). If they continue to offer those I will keep it. The one and only annoyance I have with Mercury is that you have to have $10 to cash out the Cashback with them. Amex also has a $25 limit before cashing out with the BCE, where as others it doesn't matter. That's an annoyance and not a problem. 

[HeavenOhio]

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@GatorGuy wrote:

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@Anonymous wrote:

I check all of my accounts every week because I'm neurotic about things like this. IThe cards I may end up eventually closing don't have the same type of alerts as other cards, if they do then I haven't figured it out yet.  

I was just wondering if it would be more beneficial to show two or more years payment history vs 6 months when the account is closed. 

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Pretty much every card allows you to go and set up a charge alert. I have it set up to text me any time one of my cards is used. Prevents me from having to check them all the time. Ironically Amex only allows you to be notified on charges more than $10. Kind of stupid since many times when a card info is stolen they test for small transactions.

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@GatorGuy, my AMEX card notifies me of every transaction. I wonder why our experiences are different.

My LL Bean MasterCard from Citi doesn't offer notifications. That's something I'll definitely check on if I decide to apply for a new card. If I can't get notifications, I won't apply for the card.