You can close them whenever you feel ready to. There's no one size fits all answer. That said, it's usually prudent to close subprime/starter cards once you obtain "prime" cards, such as Discover, a Chase card, Amex, etc
Closed accounts in good standing will remain on your reports up to 10 years, and closing them shouldn't hurt your scores any unless losing their credit lines will take you past a known revolving utilization scoring threshold. In your case, if you have other cards with higher limits and low balances on your cards, that $1.5k in credit you'd lose between the FP and Cap One shouldn't really affect you.
@Anonymous wrote:I have a Cap1 QS1 with a wonderful $500 limit that I've had for almost 2 years and a First Premier $1k that is just a year old. I'd like to close these cards as they provide no value and for the First Premier, negative value with their monthly and annual fees.
My question is when should I close these and how will closing them affect my scores.
1. IMHO anything with an annual fee should be dumped at this point. So goodbye First Premier.
2. If they don't affect your utilization, then closing them won't impact your score at all in the near future.
3. As to the QS1, it's a matter of personal preference, doesn't really matter either way. You could just hold on to it, and buy a pack of gum once every couple of months. Or close it, if you just don't want to think about it any more.
The important part is that you know if it will affect you or not in a negative way. As others have said, closed acct will stay in your report for 10yrs(+7 is excellent), you have a variety of cards and can easily add a better one if you each time you close one. Now, it's up to you to judge, less vs +better cards. Your decision.
@HeavenOhio wrote:@SouthJamaica, the QS1 has an annual fee. @Anonymous, I'd close both cards.
I didn't know. Well, if the QS1 also has an annual fee, I too would recommend closing both cards.
I'd close them both. Annual fees when you don't get anything like anniversary points or free nights at a hotel are a waste. If you've moved past the point where you need "starter" cards to build your credit, then dump those annual fee ones. The loss of $1500 isn't going to affect your credit.
Starting Score: 667