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New Credit Card vs Old Credit Card Trap

av8or1
Visitor

New Credit Card vs Old Credit Card Trap

I have an older credit card from Credit One. In the beginning, it suited its purpose well, it allowed me to rebuild credit when my score was in the trash. Now it has become one of my older credit lines. With a more respectable FICO score in the low 700’s, I am wanting out of my relationship with Credit One, but can’t figure out how without hurting my credit. My problem is my Card has a monthly $8.25 users fee. But this card is one of my older lines of credit. How can I ditch this card after getting a new no fee card without hurting my score?

Message 1 of 7
6 REPLIES 6
pinkandgrey
Community Leader
Senior Contributor

Re: New Credit Card vs Old Credit Card Trap

Well there's really no way to get rid of it without ANY effect on your score. But it won't be a major hit by any means, and it will be very worth it. I closed my oldest card quite awhile back with no regrets and my score wasn't impacted much at all. 

As long as you have other, better CCs to back you up, you will be totally fine. Close away! 

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Message 2 of 7
calyx
Super Contributor

Re: New Credit Card vs Old Credit Card Trap

The only way it could have a significant impact on your credit score is if closing it means that your utilization gets high (if it has a high credit limit, which you "lose", causing your regular useage to report at a higher utilization - over one of the signficant threshholds of 9/29/49/69%).

 

The account won't disappear from your credit reports for a while (up to 10 years, and I have an account that closed in 15 years ago still on one of my reports!).   Any hit you take will be short lived, or even non-existent if you're good at managing your accounts.

Close it.  I closed my first account (other than that freak ancient one) at 10mos old, no problem.   It's still there holding down the proverbial fort.


RIP:

F8 EQ: 815 | EX: 801 | TU: 805 | Accounts: 1/6 3/12 6/24
Happy practitioner of AZE7or8or9or10 | Team Finances > FICO
Message 3 of 7
M_Smart007
Epic Contributor

Re: New Credit Card vs Old Credit Card Trap

You might list your cards along with the age of those cards?

So myFICO peep's could give you better advice.

 

Keep in mind, that closed account(s) can report positive for up to 10 years.

 

Just make sure if you close it, check the statement several times for a few months,

as I have read that Credit One likes to tack on fees after.

 

 

Good Luck!

Message 4 of 7
SouthJamaica
Super Contributor

Re: New Credit Card vs Old Credit Card Trap


@av8or1 wrote:

I have an older credit card from Credit One. In the beginning, it suited its purpose well, it allowed me to rebuild credit when my score was in the trash. Now it has become one of my older credit lines. With a more respectable FICO score in the low 700’s, I am wanting out of my relationship with Credit One, but can’t figure out how without hurting my credit. My problem is my Card has a monthly $8.25 users fee. But this card is one of my older lines of credit. How can I ditch this card after getting a new no fee card without hurting my score?


It won't hurt your scores. It will stay in your reports for a long time, most typically 10 years or so. So what you should do is call them up to cancel.  If they try to keep you from cancelling tell them they would have to remove any annual or monthly fees, otherwise you're cancelling. If they don't do it, good riddance.


Total revolving limits 653000 (575000 reporting) FICO 8: EQ 716 TU 747 EX 715

Message 5 of 7
Iusedtolurk
Established Contributor

Re: New Credit Card vs Old Credit Card Trap


@SouthJamaica wrote:

@av8or1 wrote:

I have an older credit card from Credit One. In the beginning, it suited its purpose well, it allowed me to rebuild credit when my score was in the trash. Now it has become one of my older credit lines. With a more respectable FICO score in the low 700’s, I am wanting out of my relationship with Credit One, but can’t figure out how without hurting my credit. My problem is my Card has a monthly $8.25 users fee. But this card is one of my older lines of credit. How can I ditch this card after getting a new no fee card without hurting my score?


It won't hurt your scores. It will stay in your reports for a long time, most typically 10 years or so. So what you should do is call them up to cancel.  If they try to keep you from cancelling tell them they would have to remove any annual or monthly fees, otherwise you're cancelling. If they don't do it, good riddance.


Started my rebuild about 2 years ago and the 2nd card I got was Creditone with 9.00 per month fee (108 dollars year) it just turned 2 years old this month.

 

Had to pay to play but looking forward down the line to close it to get rid of that fee. When I get ready to make that move I will definitely first see if they would agree to remove the monthly fee and if that's a negative I will thank them for allowing me the helping hand in my credit journey and close it.

Message 6 of 7
av8or1
Visitor

Re: New Credit Card vs Old Credit Card Trap

Thanks I have been wondering  about this problem...

Message 7 of 7
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