cancel
Showing results for 
Search instead for 
Did you mean: 

When to close starter cards

freshcredit2
Contributor

When to close starter cards

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.


4 REPLIES 4
OmarGB9
Community Leader
Super Contributor

Re: When to close starter cards

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.


Last App: 04/05/2021
Penfed Signature Loan

Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:




Current FICO 8 scores:


Message 2 of 5
SouthJamaica
Super Contributor

Re: When to close starter cards


@freshcredit2 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.

 

 


Total revolving limits 663000 (585000 reporting) FICO 8: EQ 716 TU 742 EX 713

Message 3 of 5
REDBOYYY56
Valued Member

Re: When to close starter cards

What are your scores, sir? Where are you in the building process?

Message 4 of 5
calyx
Super Contributor

Re: When to close starter cards

You would definitely want to get rid of any (unnecessary) AF cards - so toss First Premier.
As for the others, it's preference.    I would just lock them (if possible) and keep them in a sock drawer until they died (were closed by the lender) due to non-use.

RIP:

F8 EQ: 809 | EX: 802 | TU: 805 | Accounts: 0/6 3/12 5/24
Happy practitioner of AZE7or8or9or10 | Team Finances > FICO
Message 5 of 5
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.