Closing Credit Cards - Advice on Oldest

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Topic Author
ddurrett896
Posts: 1436
Joined: Wed Nov 05, 2014 3:23 pm

Closing Credit Cards - Advice on Oldest

Post by ddurrett896 »

Currently have a 13 year old VISA and 11 year old AMEX that I rarely use. I keep them active because they are my longest cards but don't pay the best rewards since the programs are so old. Since, I've opened a better AMEX with double the points that's my go to when I'm not churning a card for the bonuses.

Will it hurt my credit score to cancel the 11 year old AMEX, as long as I keep the VISA which is my oldest? Thanks!
runner3081
Posts: 3821
Joined: Mon Aug 22, 2016 3:22 pm

Re: Closing Credit Cards - Advice on Oldest

Post by runner3081 »

Yes, a small negative impact for a lower available credit balance.
PFInterest
Posts: 2684
Joined: Sun Jan 08, 2017 12:25 pm

Re: Closing Credit Cards - Advice on Oldest

Post by PFInterest »

imo just close the ones you dont want. i dont care what it does to my score....it will be perfect no matter what not because of years open...but how i use them.
Afty
Posts: 1518
Joined: Sun Sep 07, 2014 5:31 pm

Re: Closing Credit Cards - Advice on Oldest

Post by Afty »

Do you expect to need credit in the near future? I.e. If you're planning to take a mortgage or finance a car soon, then you probably don't want to close those accounts. Otherwise I would close them. Your credit score will recover in not too long.
rec7
Posts: 2369
Joined: Tue Oct 28, 2008 7:22 pm

Re: Closing Credit Cards - Advice on Oldest

Post by rec7 »

I just closed my oldest card. Opened a new credit card and line of credit. I only lost about 10 points. A few months later I have most of that back.
Disclaimer: You might lose money doing anything I say. Although that was not my intent. | Favorite song: Sometimes He Whispers Jay Parrack
BeneIRA
Posts: 846
Joined: Sat Nov 29, 2014 8:43 pm

Re: Closing Credit Cards - Advice on Oldest

Post by BeneIRA »

ddurrett896 wrote:Currently have a 13 year old VISA and 11 year old AMEX that I rarely use. I keep them active because they are my longest cards but don't pay the best rewards since the programs are so old. Since, I've opened a better AMEX with double the points that's my go to when I'm not churning a card for the bonuses.

Will it hurt my credit score to cancel the 11 year old AMEX, as long as I keep the VISA which is my oldest? Thanks!
If you have churned your way through a the Amex's, since they are once per lifetime, you could just product change it to either a Blue Cash Everyday or an Everyday. No annual fees and the latter gives you a no annual fee Membership Rewards card to keep your stash alive.

For the Visa, I would have product changed to a Chase Freedom a long time ago, especially if you have a Sapphire Reserve or Preferred. You can have multiple Freedoms and when it is a good quarter, such as groceries, you can stock up on gift cards and transfer the Ultimate Rewards to the CSR.
User avatar
Dale_G
Posts: 3386
Joined: Tue Feb 20, 2007 5:43 pm
Location: Central Florida - on the grown up side of 83

Re: Closing Credit Cards - Advice on Oldest

Post by Dale_G »

Sometimes not much happens. A few years ago I closed an old AMEX Gold card and opened a AMEX Blue card as a replacement. I liked the 6% rebate for groceries (and drugs at the grocery store). Both TransUnion and Equifax show the Blue Card account as dating from October 1971 - the old Gold card start date.

Swapping cards within the same issuer may be a non-event.

Dale
Volatility is my friend
michaeljc70
Posts: 7383
Joined: Thu Oct 15, 2015 3:53 pm

Re: Closing Credit Cards - Advice on Oldest

Post by michaeljc70 »

I keep open a few older cards I really don't use due to the way credit scores are calculated. To be honest, I think it is completely unfair. It should be based on the length of your credit file and not how long certain accounts are open. I find it hard to believe you are a bigger credit risk if you had a card for five years, closed it and opened another for 5 year vs. 1 ten year old credit card.

Since I churn cards (maybe 3 a year), most of mine are new and the older ones balance that out somewhat.
Post Reply