Do you cancel old credit cards?

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deltaneutral83
Posts: 1810
Joined: Tue Mar 07, 2017 4:25 pm

Re: Do you cancel old credit cards?

Post by deltaneutral83 »

Average age of history isn't all that important once you get to two years. I have over 800 beacon and am at 26 months average account age. Going from an 840 with a 15 year history to an 815 with a two year history isn't making a difference. You wouldn't want to cancel cards that lower your overall credit to the point of high utilization (overall credit limit say $50k, cancel cards and now and you're at $20k limit and you spend $10k a month giving you a 50% util, get dinged). You also wouldn't want to go over say 40% on an individual util either (spending over say $4k a month on a card with $10k limit, that can and will ding you as well temporarily until the next month when you get util back down. Can we also get mods to clean up posts about archaic comments about annual fee cards. There have been cards on the market that easily outpace their annual fee 10x fold in benefits for nearly two decades, the comments to the contrary are simply irrelevant.
sd323232
Posts: 896
Joined: Thu Jun 21, 2018 4:45 pm

Re: Do you cancel old credit cards?

Post by sd323232 »

I have two credit cards and closed all other ones. I hope to hit 1.5mil-2mil networth, so credit score will be useless to me.
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JaneyLH
Posts: 539
Joined: Wed Oct 16, 2013 7:16 pm

Re: Do you cancel old credit cards?

Post by JaneyLH »

TravelforFun wrote: Sun Jun 17, 2018 1:56 pm
dknightd wrote: Sun Jun 17, 2018 11:55 am I would never open an account that charged me a fee. so I see no need to cancel an old one.
If you fly frequently, you probably wouldn't mind paying a fee to get the 50,000 bonus miles and Priority Lounge Pass.

TravelforFun
I got my Chase Sapphire Reserve card when they were still offering 100,000 miles... and hubby got one too. We cancelled his after the first year and use mine for the majority of our expenses. We enjoy the Priority Lounge Pass perk tremendously and rely on the card’s trip insurance benefits. We keep our old no-fee cards forever.
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archbish99
Posts: 1646
Joined: Fri Jun 10, 2011 6:02 pm

Re: Do you cancel old credit cards?

Post by archbish99 »

SurfCityBill wrote: Wed Jun 27, 2018 1:14 pm Problem was my father was in no condition to do so himself. Amazing how well I can imitate a gravelly voiced cantankerous old guy on the phone. :twisted:
For a number of years, my father was still coherent enough to answer "Yes" when a customer service person asked him if they were authorized to discuss the account with / accept instructions from me. Only once did I have a transaction reversed: they called the following day and asked him by himself whether he'd meant to make that change, and he didn't understand what they were talking about.
I'm not a financial advisor, I just play one on the Internet.
Quickfoot
Posts: 1166
Joined: Fri Jan 11, 2013 1:03 pm

Re: Do you cancel old credit cards?

Post by Quickfoot »

From a credit score perspective there's really no reason to close them and no practical reason unless they have annual fees. If you aren't using the card the card number / information is extremely unlikely to be stolen. A lot of credit companies will let you combine cards where they transfer the credit limit from one card to another and close the other card. This keeps your available credit the same but lets you get rid of an account you don't need.

I've combined multiple cards at Chase and at Capital One, Capital One will let you do it online where at Chase you have to call. Citi I'm told does not transfer limits between cards which is a shame.

I don't chase bonuses but I have signed up for several cards because of long term benefits of having cards, I have Marriott, Hyatt, Costco, Alaska Air, Southwest Air, Amazon, Barnes and Noble, Citi Double Cash, Sapphire among other cards. I would NOT signup for a card solely because of a bonus with the intent of closing it once I got the bonus because the credit score cost isn't worth it to me.
Quickfoot
Posts: 1166
Joined: Fri Jan 11, 2013 1:03 pm

Re: Do you cancel old credit cards?

Post by Quickfoot »

Average age of history isn't all that important once you get to two years.
Not true, inquiries fall off after 2 years but even 5 years average credit age is considered low and negatively impacts credit score. The more cards you open the lower your average age becomes and the more credit checks you have which both lower credit score. Chasing credit card bonuses lowers your score, for some people it may be worth it but it does come at a noticeable credit score cost. It's better to have a 10+ year average account age and even that can be considered low by some lenders.

You do not want to roll into a major loan application with a 2 year average credit history, that indicates a lot of credit seeking behavior which is likely to cause them to consider you higher risk.
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