Author Topic: Cancelling an old credit card--should I do it?  (Read 2767 times)

MandalayVA

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Cancelling an old credit card--should I do it?
« on: February 26, 2015, 09:08:06 AM »
As of right now, I have four credit cards:

Fidelity Investment Rewards Amex
Costco Amex
LL Bean Visa
Bank of America MasterCard

I'm trying to get the number down to two--I'm keeping the Fidelity Amex for obvious reasons.  The Costco Amex is going to be a waste now that Amex and Costco broke up so that's gone.  My dilemma lies with the Visa and MasterCard.  I get some small rewards with the Visa, none with the MasterCard, but I've had the MC for by far the longest (2005).  I've heard it said that it's a good idea to keep an old card even if you don't use it for credit history purposes, but I don't like the idea of having that many cards.  It makes sense to keep the Visa and ditch the MC because of the rewards and to have on hand if I go someplace that doesn't take Amex, but I don't want to inadvertently screw things up down the road.  Thoughts?

slugline

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Re: Cancelling an old credit card--should I do it?
« Reply #1 on: February 26, 2015, 09:16:38 AM »
No annual fees on any of these, right? I don't really see the downside of holding that Mastercard and not using it.

RunHappy

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Re: Cancelling an old credit card--should I do it?
« Reply #2 on: February 26, 2015, 09:21:21 AM »
If there are no fees on them and you don't use them then there is no harm in keeping them around.   When you close a card you are shortening the length of your credit card history and debt to income ratio. If you are planning to get a loan at anytime in the future, then do not close these. 

johnny847

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Re: Cancelling an old credit card--should I do it?
« Reply #3 on: February 26, 2015, 09:22:25 AM »
No annual fees on any of these, right? I don't really see the downside of holding that Mastercard and not using it.
Exactly. Average age of accounts is one of the factors in your credit score. In the absence of annual fees, you should keep old cards open to keep increasing your average age of account.

MandalayVA

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Re: Cancelling an old credit card--should I do it?
« Reply #4 on: February 26, 2015, 09:48:02 AM »
No, none have fees.  I have the MC hidden away and haven't used it in about two years.  I guess I'll just leave well enough alone then!

iamadummy

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Re: Cancelling an old credit card--should I do it?
« Reply #5 on: February 26, 2015, 09:59:41 AM »
I cancel mine all the time and it doesn't seem to effect my score (high 700s).  Once I get the bonus reward it's closed.

rocksinmyhead

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Re: Cancelling an old credit card--should I do it?
« Reply #6 on: February 26, 2015, 10:10:49 AM »
No annual fees on any of these, right? I don't really see the downside of holding that Mastercard and not using it.

+1

I have a Wells Fargo visa with no rewards (and no annual fee) that I keep and use only very occasionally (mostly at places that don't take Amex, which is my main card) because it's by FAR the oldest thing on my credit report. If it's not that much older than the next oldest, maybe it wouldn't make that much of a difference for you, but I'm pretty sure it would for me!

fetzer85

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Re: Cancelling an old credit card--should I do it?
« Reply #7 on: February 26, 2015, 10:18:00 AM »
I cancel mine all the time and it doesn't seem to effect my score (high 700s).  Once I get the bonus reward it's closed.
So you're frequently canceling new lines of credit? If that's the case then maybe it's not effecting your score much because it's not changing your long-term history.