Thinking About Closing Accounts - Credit Impact?

[driftless]

I would close them, I am in the simpler is better camp. After we closed on our house my wife combined, closed, her oldest Cap One card and it had no effect on her score. FWIW - I don't carry more than 2 - 3 cards. The OP has two nice Amex cards and one nice Visa.

[ramblin_wreck08]

Thanks for all the great replies. To sum up the responses:

1. Closing the accounts will have a minimal impact on my score
2. Views are mixed on whether I should SD or close, based on:
   
   • The potential benefits of a relationship with Citi in the future (ex. balance transfer offer)
   • Having just 1 card that is not an Amex

As it stands, I am also an AU on my wife's Wells Fargo Cash Wise card, so I will be carrying 2 separate Visa's with different institutions even without the Citi relationship.We also have a good relationship with a local CU should we run into issues with Penfed/WF and need a new Visa.

As it relates to the balance transfer offer, PenFed seems to have a constant offer for a 3% balance transfer rate and 0% APR for 12 months.

I am personally in the camp of the more simple, the better, and SD'ing these cards over the past couple months has not made me feel "free" of the accounts. Since it will have a minimal impact on my credit score, I will be closing the Citi accounts. Thanks again.

[Anonymous]

OP, good question.

I've been having this internal debate with myself on closing my BOFA cash rewards card but am hesitating because it's my oldest account.

[Anonymous]

I would take the hard pull to combine them instead of closing them.  Just my opinion, though you must do what's best for you in your scenario.

[JustcallmeTM]

I have closed my oldest card 2x already, in November I combined my oldest CapOne card into my 2nd oldest account another CapOne card with better terms at the time. I just recently was pre-approved for all 3 CapOne card that was NOT mastercard and decided to jump on it after staring at it for 2 months. Once I got the card within the week I was able to combine my oldest tradeline into my newest CapOne card. 

I can let you know the outcome on that but the first time I lost maybe 3-5 points overall and the age difference between the 1st and 2nd oldest account was a year. I decided to look at my overall profile and noticed that my student loans are roughly the same age of my CapOne card I just recently combined. I don't expect to see any major hit this time also as my student loans are now my oldest active accounts open going forward.

[driftless]

Also it is important remember that there will be a difference between FAKO, which shows only open accounts, and FICO which includes closed accounts for 10 years.

[smallfry]

Unless you are OCD about things like this there is no benefit to closing the Citi cards. They still are cnsidered one of the most prestigious lenders for credit cards. There is a link out there to increase those Citi cards with no pull at all. Keep the cards and within a few years the limits on each of those cards will be upwards of 15K each if you behave. Again there is zero benefit from closing the cards. You have a young thin file why on earth anyone would tell you to close two of the olderst tradelines in beyond me.Bad idea.

[SouthJamaica]

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@ramblin_wreck08 wrote:

I have been a Citi CC holder since receiving the Citi MTVU card back in college. Today I hold a Citi Forward VS and a Citi Dividend WEM as my two oldest accounts. These accounts have seen no use for the past several months after Citi cut the Forward from the old 5x Restaurant/Bookstore rewards to the new 2x structure (it was a good run while it lasted). I'm not a fan of Citi CS, ThankYou rewards, or their rotating categories and would like to close these accounts, but am concerned about the potential credit score impact. More than the lack of use, I'm trying to reduce the overall number of financial accounts I have to manage.

How hard would this hit my credit score? I'm currently in the 775-800 range FICO. I don't plan on applying for anything in the next year - already have the big ticket items covered. I rarely let a statement cut with more than $1k, so utilization is not an issue.

Open accounts: CL - age

Amex BCP: $20k - 4.5 years

PenFed Platinum Rewards VS: $16.5k - 3.5 years

Amex HHonors: $10k - 9 months

Citi Forward VS: $7.5k - 6.5 years

Citi Dividend WEM: $7k - 4.5 years

Auto Loan - 2 years

Student Loan (cosigner for wife) - 2 years

Mortgage - 1.5 years

Student Loan (refi for myself) - 7 months

I also have an auto loan that is closed - PIF - that was 3.5 years old, as well as a few other student loan transfers and closed CC accounts in the 3-6 year range. As of September, I will be down to 2 hard inquiries.

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1. I don't think it would affect your scores much, but if you're cancelling both you might want to do one at a time, and space it out a little.

2. Have you tried PC'g them into the Double Cash card? That would probably be more up your alley, and you'd keep the age of one of the accounts.

[JustcallmeTM]

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@smallfry wrote:

Unless you are OCD about things like this there is no benefit to closing the Citi cards. They still are cnsidered one of the most prestigious lenders for credit cards. There is a link out there to increase those Citi cards with no pull at all. Keep the cards and within a few years the limits on each of those cards will be upwards of 15K each if you behave. Again there is zero benefit from closing the cards. You have a young thin file why on earth anyone would tell you to close two of the olderst tradelines in beyond me.Bad idea.

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I have tried almost everyone theories in here on my own profile, its all hit and miss, the person stated they have there house and car, so why keep dead weight and keep checking in on the account. 

Prestigous has zero factor anymore they are a piece of plastic in which they extend you money for you to use, I treat it as such. Citi, Barclays, Chase has been handing out cards like candy and taking on more portfolios, in return they are charging lower swipe fees. If thats the case those specific banks expect you to have a heavy swipe and PIF mentality. In short these specific bank are losing money if people aint using the card heavy all the time and will start eye balling your profile. 

MY DW has been sitting idle on Citi, Chase and Barclays and only Citi has nagged her about using it, waiting on Barclays and Chase gave her a 1K auto-CLI. Every bank is different and every profile is different. 

AAoA is only important to my belief is when your going to refinance/buy a home outside of that I havent seen any major impact in score over closing old tradelines.

[Anonymous]

Sounds like you want to be rid of the cards completely. I just closed my oldest account, no regrets. Then again, I have a lot more available credit. If you don't wish to combine them or PC them I really don't see the point in keeping them.