Affect on CS when closing a CC but opening a new 1 to replace it

[joeblow2]

If i have a CC with an annual fee open for 8 yrs anad i open a new 1 (with no annual fee) and close the old 1. What affect will that have on my CS and how long will i take to recoup those points ? No balances on any  CC

[Anonymous]

Hi joe,

First of all, give this a read:  

Closing Credit Cards  

 That will help you get a handle on the effect of closing credit cards.

Do you have any additional cards open? The impact of opening a new account depends on what's already on your credit report.

You will generate a new inquiry - most of the time that has a zero to minor impact.

You will have a new account - impact depends on your history.  How many other new accounts do you have?

You will change your AverageAge of Accounts.  It will be younger with a new account.  If you give your info on all accounts and open dates, we'll help you figure it out.  

IME:  No impact on closing fee accounts (sometimes a minor score bump, IME), and minor impact on opening a new account (sometimes a minor score bump, IME also).  

My knee jerk:  Definitely go for it - no  eason to keep an AF account open unless it's got some benefit you like.  Do make sure you open a new (or two) account before closing the old, if it's your only open cc.

[joeblow2]

I  have 8 CC total closing 3 with an annual fee and opening 3 to replace them (no annual fee). AAoA is 6 yrs. 0 balances on all CC and a Mortgage 2 yrs old

How many points will i lose approx? and how long to recoup those points

Thanks 

[smallfry]

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@joeblow2 wrote:

If i have a CC with an annual fee open for 8 yrs anad i open a new 1 (with no annual fee) and close the old 1. What affect will that have on my CS and how long will i take to recoup those points ? No balances on any  CC

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No one can know with any certainty about point loss or gain. You can easily find out your new average age. Check it out. I am sure it will now be under 6 years. The closed accounts will still help until they are dropped off hopefully in no less than 10 years.

[Anonymous]

Why do you feel the need to replace the three you're closing? 

Maybe give us a little more info on your current cards, and your thinking on what you'd like to open.

[joeblow2]

The 3 i am closing all have annnual fees I just dont want to pay annual fees anymore and I want to replace the CL with new ones so my total CL available does not drop or even increase it if possible

[smallfry]

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@joeblow2 wrote:

The 3 i am closing all have annnual fees I just dont want to pay annual fees anymore and I want to replace the CL with new ones so my total CL available does not drop or even increase it if possible

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I am going to assume the 3 you want to close are low limit cards right? Why not try to get a decent limit on ONE good credit union credit card instead of mutilating your average age and adding a  bunch of new accounts that is guaranteed to hurt your overall credit profile? What cards were you thinking about applying for anyway?

[joeblow2]

The 3 i am closing have a 5800, 2800, and 2500 limit. I was gong to apply for maybe a citi or another capital one with no fee

[MarineVietVet]

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@joeblow2 wrote:

The 3 i am closing have a 5800, 2800, and 2500 limit. I was gong to apply for maybe a citi or another capital one with no fee

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How much is the AF on that $5,800 CL? That's a pretty decent amount to be losing by closure. Have you considered asking the issuer if it's possible to change to a card with no AF? That might be worth trying.

From a BK years ago to:

9/09 EX pulled by lender 802
3/10 EQ- 800
4/10 TU -772

You can do the same thing with hard work

Credit Scoring 101
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[Anonymous]

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@MarineVietVet wrote:

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@joeblow2 wrote:

The 3 i am closing have a 5800, 2800, and 2500 limit. I was gong to apply for maybe a citi or another capital one with no fee

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How much is the AF on that $5,800 CL? That's a pretty decent amount to be losing by closure. Have you considered asking the issuer if it's possible to change to a card with no AF? That might be worth trying.

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Good point.  But, in addition, what are the CL's on the cards you're keeping open??

It would still be helpful if you told us what the cards were.  Something like:

card A    opened 3/1990    CL $548

card B    opened 3/2010    CL $24000

and so on!