Some1 explain this re: closing cards

[Anonymous]

Why is it so bad to close a cc?
Am I wrong that the only ill effect it can have is making your Util go up-IF you have any utilization?
So I don't get why people struggle with decisions on if or when to close.
If I get an approval of let's say, $5000-and I want to close Card 2 with a limit of $1500. I would still gain. There is no bad if I understand this right.
It's always confused me as to why some act like it is such a bad thing to do.
Not trying to do anything here but figure out if I am not understanding something.

Thanks

[Anonymous]

You are right in that aspect. However also computed is the average time the account has been open. So if its a 6 year old account it might have a negative impact.

[rmduhon]

A lot of people think that closing a card means it'll be removed from the average age of accounts/oldest account. Which is incorrect as you said. Sometimes it's just sentimental.

[EAJuggalo]

However that account will still stay on your report for the next ten years.  If it's your oldest account and you don't have another close in age it could give a ding on the score but it wouldn't be that much unless it's a very large discrepency.  As long as you have at least three open revolving tradelines and the card doesn't make sense for you anymore there isn't a real good reason not to close it.

[Anonymous]

I closed my Credit One (oldest card) last month along with Capital One and Chase. All 3 were close in age. Made 0 points difference the next month. If you think the account is useless, then get rid of it. Felt good to tell those 3 to take a hike! Lol

[Anonymous]

Good to know the info.

[SouthJamaica]

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@Anonymous wrote:
Why is it so bad to close a cc?
Am I wrong that the only ill effect it can have is making your Util go up-IF you have any utilization?
So I don't get why people struggle with decisions on if or when to close.
If I get an approval of let's say, $5000-and I want to close Card 2 with a limit of $1500. I would still gain. There is no bad if I understand this right.
It's always confused me as to why some act like it is such a bad thing to do.
Not trying to do anything here but figure out if I am not understanding something.

Thanks

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I haven't seen anybody say it's bad to close cards you don't need if it doesn't affect your utilization.

[Anonymous]

I hear it all the time on here and every other Credit site. It's like a no no for some reason. Read all the posts about "I'm worried to close my card" etc...

Thx all. That's what I thought.

[Anonymous]

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@EAJuggalo wrote:

However that account will still stay on your report for the next ten years.  If it's your oldest account and you don't have another close in age it could give a ding on the score but it wouldn't be that much unless it's a very large discrepency.  As long as you have at least three open revolving tradelines and the card doesn't make sense for you anymore there isn't a real good reason not to close it.

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That was a nice caveat and a valuable contribution to the conversation. 

If all of the following are true then IMO it makes sense to keep it open:

     * The card is your oldest open credit card.

     * It is older by a margin of several years

     * There is no annual fee and it is not otherwise a pain to keep open

If you close such a card, then in ten years (when the closed account falls off your report) your "age of oldest account" will drop by several years, and that won't be good.

[Anonymous]

@creditguyindixie.. that is a good point. That is exactly what I was trying to figure out. Thx.