Author Topic: Advice needed on cancelling credit cards  (Read 3194 times)

EconDiva

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Advice needed on cancelling credit cards
« on: January 11, 2018, 12:37:43 PM »
So I would like to get a few more credit cards this year for the purposes of funding travel.

Up until 2015 I had like 2 credit cards....as I start to get a few more I don't like the feeling of having a lot of cards to keep up with (even if I'm not using them).  Since I don't really have any use for them after the bonus has been received, I'd like to consider cancelling a few of them.  (Also because I'm not trying to pay a bunch of annual fees for cards I'm not really using.) 

I listed below the three I want to cancel now...thoughts?:

1.  Chase United MileagePlus Explorer
Date Opened: 2/18/2016
Credit Limit: 8,000
APR: 17.24% variable
Annual fee: $95
Date next annual fee due: 3/1/2017
Other notes:  I do currently have 20,000 United miles in my MileagePlus account, FYI

2.  Chase Freedom Unlimited
Date Opened: 9/28/2016
Credit Limit: 10,000
APR: 24.24% variable
Annual fee: No annual
Date next annual fee due: N/A
Other notes:  Product switch from the CSR in October 2017

3.  Chase Sapphire Preferred
Date Opened: 8/15/2017
Credit Limit: 5,000
APR: 24.24% variable
Annual fee: $95
Date next annual fee due: 9/1/2018
Other notes: None



The below cards are the cards I currently have and am keeping:
-American Express Platinum Delta Skymiles-Just got approved for this card which is pending arrival
-Chase Southwest Rapid Rewards Premier-Just got this card last week
-Chase Southwest Rapid Rewards Plus- Just got this card October 2017
-Capital One Quicksilver-Oldest card, so donít want to cancel

I am thinking I may get as many as 3-5 new cards this year.  I am thinking a few hotel branded cards.  To be honest I just don't feel like keeping up with more than, say 10 cards at a time and that would be my absolute maximum.  Curious to know if anyone else feels the same way about cc's (not wanting over a certain number). 

I appreciate thoughts on:
1.  Cancelling the 3 above mentioned cards (should I cancel?  should I keep?  if so, why?  or should I simply wait a little longer before cancelling?)
2.  Any new card recommendations (I believe I started a thread about this last year [RE: hotel branded cards] and got a few recommendations.  I will look up that thread but will also welcome any new recommendations here-hotel branded or otherwise).  FYI, I'm at the Chase 5/24 limit now.

Rob_bob

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Re: Advice needed on cancelling credit cards
« Reply #1 on: January 11, 2018, 01:08:51 PM »
I would never have a card that charges a fee, I would never make it up with the cards perks so I vote for them to go.

Keep in mind that cancelling cards can reduce your credit rating if that is important to you.

ZiziPB

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Re: Advice needed on cancelling credit cards
« Reply #2 on: January 11, 2018, 01:33:52 PM »
I have the same feelings about credits cards that you do - joggling too many cards at once makes me anxious :-)  So I usually focus on one or two cards at a time and cancel any that have annual fees, unless the cancellation would cause the related award points to expire. 

I recently cancelled both Southwest cards I got in late 2016.  I got them in order to earn points for a specific trip - I used up all the points I got through them and cancelled once the annual fee got assessed (Chase waives the fee if you cancel before it's due).  If there was any impact on my credit score, it's negligible, because I didn't notice any significant difference.

Right now I'm waiting for the bonus points to hit on the United card I got 3 months ago.  I will definitely cancel the card when the annual fee is assessed later this year.  I may need to book my award travel before then because I think cancelling this particular card makes the points go away too.

I use a Fidelity Visa card with a 2% cash back (or a Capital One Visa with 1.25% cash back if I'm abroad, since Fidelity assesses a foreign transaction fee) as my primary card, unless I'm in the process of trying to meet a minimum spend for a bonus on a new card. 




Catbert

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Re: Advice needed on cancelling credit cards
« Reply #3 on: January 11, 2018, 01:42:36 PM »
Personally, I would cancel the United card, keep the Freedom Unlimited, downgrade the CSP to a Freedom.  Why:

-I don't fly on United enough to use the bennies of having the card (i.e., wouldn't offset the annual fee).

-Keep the Freedom Unlimited 1.5% back on everything without a fee.  Among your cards this would be a good every day send.  Also a good place to stash UR points assuming you think you or spouse will get another Sapphire card in the future.

-Downgrade CSP to the basic Freedom.  Rotating 5% categories each quarter.  Also a good place to stash UR points.




 

bacchi

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Re: Advice needed on cancelling credit cards
« Reply #4 on: January 11, 2018, 01:55:07 PM »
I'm always of the opinion that you shouldn't rub bonuses in their faces. To translate, you should keep the card until right before the annual fee is due and then call to cancel. In your case, wait to cancel the CSP until this summer.

However, you can have too many Chase cards and you're approaching that limit. If you cancel the United, you can get the Chase IHG or Hyatt, which ignore the 5/24.

GizmoTX

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Re: Advice needed on cancelling credit cards
« Reply #5 on: January 11, 2018, 01:58:32 PM »
Raise your credit limits on the cards you intend to keep before cancelling the ones you no longer want; reducing your current utilization ratio will hurt your credit score. Make sure you cash out any rewards points before you cancel.

EconDiva

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Re: Advice needed on cancelling credit cards
« Reply #6 on: January 13, 2018, 06:12:44 PM »
Personally, I would cancel the United card, keep the Freedom Unlimited, downgrade the CSP to a Freedom.  Why:

-I don't fly on United enough to use the bennies of having the card (i.e., wouldn't offset the annual fee).

-Keep the Freedom Unlimited 1.5% back on everything without a fee.  Among your cards this would be a good every day send.  Also a good place to stash UR points assuming you think you or spouse will get another Sapphire card in the future.

-Downgrade CSP to the basic Freedom.  Rotating 5% categories each quarter.  Also a good place to stash UR points.
 

I imagine that this year, I will only be using one card at a time.  For instance, now that my AmEx has arrived, I will put every single expense on this card so I meet the minimum spend for the bonus as quickly as possibly, but right before meeting I plan to get another card with another bonus.  Then rinse and repeat. 

With that said, since that's my strategy for now, do you still think it's worth keeping the Freedom Unlimited?  I think I'd rather cancel it and once under the 5/24 again get another CSR or perhaps a Chase business card...

EconDiva

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Re: Advice needed on cancelling credit cards
« Reply #7 on: January 13, 2018, 06:17:21 PM »
I'm always of the opinion that you shouldn't rub bonuses in their faces. To translate, you should keep the card until right before the annual fee is due and then call to cancel. In your case, wait to cancel the CSP until this summer.

However, you can have too many Chase cards and you're approaching that limit. If you cancel the United, you can get the Chase IHG or Hyatt, which ignore the 5/24.

So I've decided to cancel the Chase United for sure.  I still want to cancel the others as well.  But something you said raised a question for me, and this may be a silly question, but:

I thought the 5/24 rule didn't allow one to have received 5 cards within 24 months.  In other words, do I have to cancel the United card to be out of the 5/24 window?  I thought that once March 2018 passed, I'd be out of that window as I wouldn't have received a new Chase card within the past 24 months (so even if I still have the card, does that matter to them)? 

Basically, does the 5/24 rule mean I definitely have to cancel the card?

Thanks for mentioning the Chase IHG...I'm looking into that one.  I hear that the Ink one gives a higher bonus though....

monarda

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Re: Advice needed on cancelling credit cards
« Reply #8 on: January 13, 2018, 06:42:54 PM »
Never heard of this 5/24 rule. Please explain.

I opened 9 cards in 2017, using their 0% promotions and intend to use for tradelines after they are 2 years old.


bacchi

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Re: Advice needed on cancelling credit cards
« Reply #9 on: January 13, 2018, 07:31:49 PM »
I'm always of the opinion that you shouldn't rub bonuses in their faces. To translate, you should keep the card until right before the annual fee is due and then call to cancel. In your case, wait to cancel the CSP until this summer.

However, you can have too many Chase cards and you're approaching that limit. If you cancel the United, you can get the Chase IHG or Hyatt, which ignore the 5/24.

So I've decided to cancel the Chase United for sure.  I still want to cancel the others as well.  But something you said raised a question for me, and this may be a silly question, but:

I thought the 5/24 rule didn't allow one to have received 5 cards within 24 months.  In other words, do I have to cancel the United card to be out of the 5/24 window?  I thought that once March 2018 passed, I'd be out of that window as I wouldn't have received a new Chase card within the past 24 months (so even if I still have the card, does that matter to them)? 

Basically, does the 5/24 rule mean I definitely have to cancel the card?

Thanks for mentioning the Chase IHG...I'm looking into that one.  I hear that the Ink one gives a higher bonus though....

Apologies if you already know some of this...

First, the 5/24 rule applies (mainly) to the Chase branded cards. I.e., Ink, Freedom, Sapphire, etc. It also affects some co-branded cards like Marriott and United. It doesn't, however, apply to a few of the co-branded cards like Hyatt or IHG (probably because people hold on to them longer due to their anniversary benefits). The Amazon card is also not affected. NOTE: While you can get these cards, they do count towards the 5/24 for Ink, Freedom, etc.

Correct -- the 5/24 rule is based on new cards received. It's not just Chase issued cards, though. Chase looks at ALL credit cards received in the past 24 months from ALL banks. That's why this game is best played with a partner.

Anyway, there's a more ambiguous rule (that I mentioned in my initial post) about having too many Chase cards active, total. It's probably around 6-7 cards. In other words, even if you fit under the 5/24 rule, trying to get another Chase card with an active F, FU, CSP, CSR, United, and Hyatt, might be pushing it.


@monarda Chase won't issue you many of their cards if you've opened 5 new accounts over the past 24 months. Some, as explained above, will still work. Citi and AmEx have similar policies but they're more lenient.


EconDiva

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Re: Advice needed on cancelling credit cards
« Reply #10 on: January 13, 2018, 08:20:39 PM »
I'm always of the opinion that you shouldn't rub bonuses in their faces. To translate, you should keep the card until right before the annual fee is due and then call to cancel. In your case, wait to cancel the CSP until this summer.

However, you can have too many Chase cards and you're approaching that limit. If you cancel the United, you can get the Chase IHG or Hyatt, which ignore the 5/24.

So I've decided to cancel the Chase United for sure.  I still want to cancel the others as well.  But something you said raised a question for me, and this may be a silly question, but:

I thought the 5/24 rule didn't allow one to have received 5 cards within 24 months.  In other words, do I have to cancel the United card to be out of the 5/24 window?  I thought that once March 2018 passed, I'd be out of that window as I wouldn't have received a new Chase card within the past 24 months (so even if I still have the card, does that matter to them)? 

Basically, does the 5/24 rule mean I definitely have to cancel the card?

Thanks for mentioning the Chase IHG...I'm looking into that one.  I hear that the Ink one gives a higher bonus though....

Apologies if you already know some of this...

First, the 5/24 rule applies (mainly) to the Chase branded cards. I.e., Ink, Freedom, Sapphire, etc. It also affects some co-branded cards like Marriott and United. It doesn't, however, apply to a few of the co-branded cards like Hyatt or IHG (probably because people hold on to them longer due to their anniversary benefits). The Amazon card is also not affected. NOTE: While you can get these cards, they do count towards the 5/24 for Ink, Freedom, etc.

Correct -- the 5/24 rule is based on new cards received. It's not just Chase issued cards, though. Chase looks at ALL credit cards received in the past 24 months from ALL banks. That's why this game is best played with a partner.

Anyway, there's a more ambiguous rule (that I mentioned in my initial post) about having too many Chase cards active, total. It's probably around 6-7 cards. In other words, even if you fit under the 5/24 rule, trying to get another Chase card with an active F, FU, CSP, CSR, United, and Hyatt, might be pushing it.


@monarda Chase won't issue you many of their cards if you've opened 5 new accounts over the past 24 months. Some, as explained above, will still work. Citi and AmEx have similar policies but they're more lenient.

Thanks for the info...I don't know I didn't know the 5/24 rule applies to ALL banks....I thought this was just for Chase branded cards!

:(

monarda

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Re: Advice needed on cancelling credit cards
« Reply #11 on: January 13, 2018, 09:09:13 PM »
I'm always of the opinion that you shouldn't rub bonuses in their faces. To translate, you should keep the card until right before the annual fee is due and then call to cancel. In your case, wait to cancel the CSP until this summer.

However, you can have too many Chase cards and you're approaching that limit. If you cancel the United, you can get the Chase IHG or Hyatt, which ignore the 5/24.

So I've decided to cancel the Chase United for sure.  I still want to cancel the others as well.  But something you said raised a question for me, and this may be a silly question, but:

I thought the 5/24 rule didn't allow one to have received 5 cards within 24 months.  In other words, do I have to cancel the United card to be out of the 5/24 window?  I thought that once March 2018 passed, I'd be out of that window as I wouldn't have received a new Chase card within the past 24 months (so even if I still have the card, does that matter to them)? 

Basically, does the 5/24 rule mean I definitely have to cancel the card?

Thanks for mentioning the Chase IHG...I'm looking into that one.  I hear that the Ink one gives a higher bonus though....

Apologies if you already know some of this...

First, the 5/24 rule applies (mainly) to the Chase branded cards. I.e., Ink, Freedom, Sapphire, etc. It also affects some co-branded cards like Marriott and United. It doesn't, however, apply to a few of the co-branded cards like Hyatt or IHG (probably because people hold on to them longer due to their anniversary benefits). The Amazon card is also not affected. NOTE: While you can get these cards, they do count towards the 5/24 for Ink, Freedom, etc.

Correct -- the 5/24 rule is based on new cards received. It's not just Chase issued cards, though. Chase looks at ALL credit cards received in the past 24 months from ALL banks. That's why this game is best played with a partner.

Anyway, there's a more ambiguous rule (that I mentioned in my initial post) about having too many Chase cards active, total. It's probably around 6-7 cards. In other words, even if you fit under the 5/24 rule, trying to get another Chase card with an active F, FU, CSP, CSR, United, and Hyatt, might be pushing it.


@monarda Chase won't issue you many of their cards if you've opened 5 new accounts over the past 24 months. Some, as explained above, will still work. Citi and AmEx have similar policies but they're more lenient.

Thanks for the info...I don't know I didn't know the 5/24 rule applies to ALL banks....I thought this was just for Chase branded cards!

:(
Ah, no wonder I knew nothing about this.
I have no Chase cards. We got really mad at Chase a while back and closed all of our accounts with them. I guess I'm not eligible then. No problem.

I have 4 Citi cards, , 2 Bank of America, 2 Barclay's, and a Discover - all opened in 2017.  6 of these are at 0% for a couple of years

civil4life

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Re: Advice needed on cancelling credit cards
« Reply #12 on: January 14, 2018, 03:27:34 PM »
Not to hijack the OPs post, but I have a related question.  I have CC that I never use mostly from stores.  Some of these companies have closed up.  I have not cancelled them because the one area my credit report always says that is effecting my score is my length of credit history.  I have had my main cc since 2002.  Will it hurt to close some of these without impacting my credit score?

Rob_bob

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Re: Advice needed on cancelling credit cards
« Reply #13 on: January 14, 2018, 08:22:59 PM »
Are these like local store cards or are they actual Visa or MC? I have heard that closing store cards has little to no impact on your credit score.

Now I have a Sears card but it is a MC from Citi Bank and I would take a hit if I closed it.

Catbert

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Re: Advice needed on cancelling credit cards
« Reply #14 on: January 15, 2018, 03:03:52 PM »
Not to hijack the OPs post, but I have a related question.  I have CC that I never use mostly from stores.  Some of these companies have closed up.  I have not cancelled them because the one area my credit report always says that is effecting my score is my length of credit history.  I have had my main cc since 2002.  Will it hurt to close some of these without impacting my credit score?

I would probably s-l-o-w-l-y start cancelling them.  Cancel one, wait a couple of months to track impact on FICO.  Then cancel another one.  Rinse and repeat.  I would not cancel your oldest card.

ChpBstrd

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Re: Advice needed on cancelling credit cards
« Reply #15 on: January 16, 2018, 12:13:07 PM »
Not to hijack the OPs post, but I have a related question.  I have CC that I never use mostly from stores.  Some of these companies have closed up.  I have not cancelled them because the one area my credit report always says that is effecting my score is my length of credit history.  I have had my main cc since 2002.  Will it hurt to close some of these without impacting my credit score?

Yes it will hurt your credit score to close your oldest accounts. If they don't have an annual fee, keep them until expiration.

Great news: There's no work involved in maintaining a solid credit score that will reduce your insurance rates, etc!

JLee

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Re: Advice needed on cancelling credit cards
« Reply #16 on: January 16, 2018, 02:27:59 PM »
As I understand it, there is no benefit to canceling credit cards that don't have annual fees.  It will harm your credit and provide nothing of value (other than simply having fewer accounts open, which means nothing to me).

civil4life

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Re: Advice needed on cancelling credit cards
« Reply #17 on: January 17, 2018, 08:54:22 AM »
I definitely will not close the oldest.  It is actually the card I use the most.  It is a rewards card.  It does not have a revolving points category.  I always get 4% on gas, 3% groceries, 2% entertainment & Restaurants, and 1% everything else.  It is a PNC Rewards.  I believe when I first got it was with National City.  They have not offered that type of card in a long time.

I am talking primarily store cards.