Author Topic: Advice on Credit Card Cancellation  (Read 1257 times)

multi-vitamin

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Advice on Credit Card Cancellation
« on: December 06, 2016, 09:29:23 PM »
Hi all,

I am wanting to cancel my three credit cards that I have and open up a different cash back one. I have read that cancelling cards will negatively impact your credit. I do not plan on making any major purchases for at least year -- maybe I will move to another apartment closer to work. Anyway, will my credit be hurt? Will it recover in a year or so? 

Can I close these cards out?

Syonyk

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Re: Advice on Credit Card Cancellation
« Reply #1 on: December 06, 2016, 10:10:05 PM »
Do they have annual fees that aren't worth it to you?  Cancel them.

If they're zero-fee cards, keep them around.  Having more long lasting lines of credit is good for your credit score, as is having a low overall utilization.

multi-vitamin

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Re: Advice on Credit Card Cancellation
« Reply #2 on: December 06, 2016, 11:31:37 PM »
Thanks for the information. They are zero fee cards...guess I'll just shove them in a drawer!


bryan995

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Re: Advice on Credit Card Cancellation
« Reply #3 on: December 07, 2016, 12:27:31 AM »
Keep at least one for the long haul.
I use chase freedom for this.

Then open 1-2 each year for the sign up bonuses. CANCEL when you are done.
Rinse and repeat.

Sign up bonuses will always be better than any standard cash back offer.

FLBiker

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Re: Advice on Credit Card Cancellation
« Reply #4 on: December 07, 2016, 05:00:09 AM »
I'd do a combination of the above advice.  Since they are no annual fee, I'd definitely keep them all open, in a drawer.  And I'd put a reminder on my calendar to use each one once a year, so that they didn't get closed.  And I (personally) apply for a new card every 3-4 months, rotating sign up bonuses.  This is worth way more than 1-2% cash back.  And I'd leave these new cards open indefinitely, unless they had an annual fee, in which case I'd close them before it kicked in.  With the exception of SouthWest cards, I never open cards that don't waive the annual fee for the first year.  For SW, I did it to get a companion pass (totally worth it).