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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: KidneyMD on November 30, 2014, 07:31:19 PM

Title: When is the right time to cancel or consolidate credit cards?
Post by: KidneyMD on November 30, 2014, 07:31:19 PM
I currently have a credit card through a bank (initially Sovereign, now Santander) that I first obtained in my teenage years. I very infrequently use it, and when I have I made all payments on time. It has no cash rewards or any perks with it, and I have wanted to cancel it for awhile since I use a different credit card much more frequently (has a lower APR and credit line). Will this affect my credit score much?
Title: Re: When is the right time to cancel or consolidate credit cards?
Post by: Will on November 30, 2014, 07:51:41 PM
Is there a fee for having the card?  If not, I would just keep it, as canceling it will shorten the age of your credit history, which has a medium affect on your credit score.  If there is a fee, it might be a good idea to call the issuer and see if they will waive the fee, or give you credit for the fee, or if neither of those, maybe transfer your credit to a no-fee card. 
Title: Re: When is the right time to cancel or consolidate credit cards?
Post by: chucklesmcgee on November 30, 2014, 07:54:41 PM
Is there a fee for having the card?  If not, I would just keep it, as canceling it will shorten the age of your credit history, which has a medium affect on your credit score.  If there is a fee, it might be a good idea to call the issuer and see if they will waive the fee, or give you credit for the fee, or if neither of those, maybe transfer your credit to a no-fee card.

Additionally, closing a card will reduce your available credit and increase your percent credit utilization, which will also hurt your score. Downgrading your card to a no-fee card is probably your best bet. Never a reason for most people to close a card with no annual fee.