Cancel Credit Card (2 Questions)

[Anonymous]

I was in a tough spot and was unable to obtain a credit card. I recieved one from Indigo ($300 limit and no increases). When can I close this card without it affecting my credit limit? It is less than 6 months old. I was thinking about closing it at 6 months? Any experience or tips?

Whats the longest you can go on average, without  using a card and the issuer not closing it. I wanted to hold off for 3 months? Will they close my account? Should I just spend $25 and spay off to keep active? Thank you for all responses.

[Remedios]

Hi and welcome to the forums

If you're wondering about scoring impact, that would depend on utilization on other cards. If it's not affected, there wont be one.

Closing a card has no immediate effect on scoring from AAoA standpoint, so you're good there

How long you can go without using a card is really issuer dependent. Store cards can typically go unused longer than credit cards, but some lenders have been known to close after 6 months. That short of time span is really not all that common.
I would say, use them once every 3-6 months to be on a safe side

[Anonymous]

You wouldn't want to close that card if it is your oldest account, if it isn't though and you want to close it you can. Personally I would just use it once a month or something for small $25 amounts and PIF monthly to keep it active. At least until you get approved for better credit cards, what I done anyhow and am getting ready to close one of two sub-prime cards I have but neither are my oldest account. The only way it will effect your credit is if that is the oldest account and your utilization but being so low it shouldn't have much of an impact if at all. 

[Anonymous]

Thank you for the replies. It is not my oldest account. It was a great starter card to help me get better cards. It is about 3 months old, thinking about closest it when my current card is increased by $300.

[BallBounces]

---

@Anonymous wrote:

Thank you for the replies. It is not my oldest account. It was a great starter card to help me get better cards. It is about 3 months old, thinking about closest it when my current card is increased by $300.

---

What is the fee structure?  Annual?  Monthly? 

[Anonymous]

There is a Annual fee of $75 for first year and $99 after. I plan to cancel before my next payment but it has helped me alot.

[BallBounces]

---

@Anonymous wrote:

There is a Annual fee of $75 for first year and $99 after. I plan to cancel before my next payment but it has helped me alot.

---

Conventional wisdom is to cancel just before the AF.

The BallBounces wisdom says to cancel now.      

$75 is a sunk cost.  If the card is not providing tangible value, you are not serving any purpose by keeping it open despite the up front fee you already paid.