cancel credit card?

Discussion in 'Credit Talk' started by cherie3600, Jun 16, 2015.

  1. cherie3600

    cherie3600 Member

    Over the past few years, I have been working on improving my credit. Thankfully with the help of this website, I went from a 550 to a 700! Now that I am on the right track, I am wondering what my next step is. I just recently opened my first unsecured credit card with a $4500 limit. I have 2 other credit cards (secured) that I opened to improve my credit a few years ago. 1 is a $600 thru my bank and 1 is a $300 with First Progress. I was wanting to cancel the First Progress since I never use it and don't want too much open credit. Is that a good or bad idea? Will canceling that card hurt my credit since it is showing credit history?
     
  2. jam237

    jam237 Well-Known Member

    Typically, the recommendation is to keep the accounts open (show a little activity now and then (just to make sure that THEY don't close it).

    The problem with closing the account is that kills all future reporting; there is no more history, and in 7 years, the account will more than likely fade into nothingness.
     
  3. Bbiendayer

    Bbiendayer Member

    Don't cancel it, keep it but carefully
     
  4. MrDario

    MrDario Member

    Many will tell you to keep it open. In my opinion I would close it (along with all your other cards, but that is a discussion for another day).
    You should only keep open the cards you absolutely need, and it looks like your card with 4500 is it.

    I understand your score is based on a number of factors. One of those factors is average length of credit. So by closing out any accounts you are effectively shortening the average length of your credit accounts which can and most likely will result in a lower score. Bear in mind your score will rebound as the card with 4500 begins to age.

    Another factor is available credit. Since the other cards have fairly low limits it should not be a problem and since you went from 550 to 700 you know how to responsibly use credit so I know you won't go over that magical 29.9% utilization. So that said you should be fine closing your card and not feel the negative effects of credit utilization.

    Disclaimer-

    The original poster asked advice on closing a card. I offered my advice based on my experience with credit and view towards it. I also know my views and advice counters the advice that will no doubt be offered by 99% of the people on this board. There is no point in name calling or ganging up on the "new guy" for having a different opinion. We are here to offer our opinions so let's be respectful present our advice and let the original poster decide which is the best route to take.
     
  5. Vettecor

    Vettecor Active Member

    Everybody is entitled to their opinion. However, you are giving this person BAD advice. Its obvious you know you are giving BAD advice due to your disclaimer.

    I don't know why you are giving bad advice maybe because your own credit score is low or possibly your a collector, or maybe just a troll.

    Its NOT a good idea to close a credit card especially one that you have had for a long period of time.

    If you don't have a sizeable fee associated with your secured cards, I would keep them open. As far as utilization the lower the better.

    Let your unsecure new credit card age for at least a couple of years then close the secured cards.
     
  6. jam237

    jam237 Well-Known Member

    Especially when the advice says, yes, your score will probably go down, but it may rebound.

    It takes a lot more time for the score to rebound than it does for it to tank. Best advice is to not recommend something that will make the score tank in the first place.
     
  7. cherie3600

    cherie3600 Member

    Thanks everyone for the feedback. It is always appreciated! MrDario, Just for a little more information-I am still on a mission to raise my score even higher, so that is why I was questioning if I should close it. I do not need any credit cards as I like to pay cash for everything. I only got the $4500 since it is a 1%-5% cash back card (Chase Freedom). I now use it for everything, but every week I move the money from my checking account to pay off the card. My credit score has never been bad because I wasn't good at managing money, but I made bad choices of who I trusted with my credit.... That mistake won't happen again :). Jam237.. thanks again for giving your opinion. You have given me good advise on here and that has a lot to do with how I was able to raise my credit score.
     
  8. JoshuaHeckathorn

    JoshuaHeckathorn Administrator

    Congrats Cherie3600 on the improvement you've made with your credit scores. So what did you decide to do? Did you end up leaving your secured credit cards open for a bit longer while you continue to build positive payment with the new Chase Freedom card? And if so, how have you credit scores done over the past 6 months?
     

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