Should I close/cancel USAA credit card account?

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UPS Gregg
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Should I close/cancel USAA credit card account?

Postby UPS Gregg » Mon Jan 02, 2012 8:50 pm

I am new to the forum and just a couple years ago (2010) got back into the credit game. I am an avid listener of Dave Ramsey and am on his baby step program (currently on step three) so borrowing money for anything other than a mortgage is pretty taboo for me.

However, once I discovered that I can actually make a little spare cash by using a credit card or charge card I couldn't resist. I figured I'd go with an Amex card and chose Zync for it's low annual fee and since the balance has to be paid in full each month.

I recently came to the conclusion that it's silly for me to pay an annual fee for ANY card so I now have a non-annual fee Amex Rewards credit card through USAA that I will treat as a charge card and pay off the balance as soon as it shows up on the account.

The dilemma I am having is what to do with the Zync card and what impact, if any, will closing the account have on my credit scores (currently all above 730). In addition to the USAA Rewards Amex I also have a mortgage that is over three years old and have another USAA credit card account (Mastercard) since 2006 that has had a zero balance since 2007. I have plenty of paid off accounts on my credit report but they are all closed now.

The questions are.......Should I keep the USAA Mastercard that is never used to maintain an older account and cancel the Zync? Can I get away with closing both account?
Current FICO: 805 (Equifax)

Current Cards:

*USAA Platinum MasterCard CL-$1,000.00
*USAA Signature Visa Card CL-$15,000.00
*USAA Rewards Amex CL-$15,000.00
*HSBC Best Buy Card CL-$3,300.00
*Amex Macy's CL-$8,000.00
*JPMorgan Chase Marriott Rewards Premier Visa Signature CL-$20,000.00


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PlatinumAMEX94
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Postby PlatinumAMEX94 » Fri Jan 27, 2012 3:52 pm

You have your mortgage already so I say cut up the Zync. Why pay for a low end AmEx card you don't want? Keep the USAA. You need to have at least 1 account with a lengthy credit history. Someone who has been using credit responsibly for 20 years is less likely to be a risk, vs. someone who is relatively new, less than 7 years.
American Express Platinum Personal, Member since 94
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Citibank ThankYou Premier World MasterCard - Card Member since 91, 25k
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Nbirnbaum2
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Postby Nbirnbaum2 » Fri Jan 27, 2012 6:31 pm

PlatinumAMEX94 wrote:You have your mortgage already so I say cut up the Zync. Why pay for a low end AmEx card you don't want? Keep the USAA. You need to have at least 1 account with a lengthy credit history. Someone who has been using credit responsibly for 20 years is less likely to be a risk, vs. someone who is relatively new, less than 7 years.


keep it amex has best dispute dept...good for online purchases if issues arise......trust me

Deighton
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Postby Deighton » Sat Jan 28, 2012 12:39 pm

I would never leave USAA. The best bank out there.

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PlatinumAMEX94
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Postby PlatinumAMEX94 » Sat Jan 28, 2012 1:56 pm

Nbirnbaum2 wrote:keep it amex has best dispute dept...good for online purchases if issues arise......trust me


His USAA IS an AmEx! An AmEx with no annual fee.
American Express Platinum Personal, Member since 94
Chase United Explorer - Visa Signature
Chase Sapphire Preferred
American Express Business Simply Cash

American Express Costco Business, American Express Platinum Business
Bank of America 10k, Capital One Venture World MasterCard 7.5k, Fidelity Visa Signature 10k
Citibank ThankYou Premier World MasterCard - Card Member since 91, 25k
Discover 10k Member since 91, Wells Fargo Personal & Business Visa Signature
USAA World MasterCard 12k, Chase Slate Exclusives Visa 5k

Lifelock member, USAA credit monitoring, Security Freezes E/E/TU, 800+

UPS Gregg
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Location: Tennessee

Postby UPS Gregg » Sat Jan 28, 2012 7:54 pm

Thanks for the replies. I did decide to use my USAA Amex but starting next year right before the annual fees on my current cards kicks in. I will hold on to the MasterCard though until my primary cards have aged a little more.

I need another card for purchases that can't be made with Amex. I'm thinking maybe another USAA and probably a VISA. The MasterCard only has a $1000 limit. Due to credit card laws I can only raise it once every six months. Or something like that. And they can only double it.

I need more to keep my utilization low. Hence the need for another card. I'm pretty sure I can get a much higher limit with a new card. My USAA Amex limit is $15,000.
Current FICO: 805 (Equifax)

Current Cards:

*USAA Platinum MasterCard CL-$1,000.00
*USAA Signature Visa Card CL-$15,000.00
*USAA Rewards Amex CL-$15,000.00
*HSBC Best Buy Card CL-$3,300.00
*Amex Macy's CL-$8,000.00
*JPMorgan Chase Marriott Rewards Premier Visa Signature CL-$20,000.00



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