When is it ok to cancel?

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spy23714
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When is it ok to cancel?

Postby spy23714 » Sat May 31, 2014 11:25 pm

I have 5 credit cards at the moment. One I use everyday, two I use occasionally, one seldomly, and one I never use. I'm considering slimming down my portfolio, but I'm not sure when it's best to hold em and when it's ok to fold em. The cards I have currently are:

B.of.A Cash Rewards: CL $1,000
CapOne Platiunum: CL $2,750
Best Buy Store Card: CL $2,000
Valero Gas Card: CL $450
Helzberg Diamonds: CL $2,500

The Valero card was once higher, but was lowered due to not using it very much. The B.of.A card is fairly new to me, and I like the rewards. Due to that, I'll likely cancel the CapOne card once the balance is paid off. I've only had the CapOne about a year and a half. The one I'm looking at likely canceling is the Helzberg Card. I got it to take advantage of a promotional offer they had during my anniversary and haven't used it since. I've had in about 9 months.

I just turned 27, so my credit history isn't real elaborate. I'm considering canceling the Helzberg card because I don't intend to use it again, and I think it will help my score as far as the AAoA is concerned. I guess my question is is the hit my score will take due to canceling it worth the bump in AAoA?

Is there any other changes you guys might recommend? Thanks in advance!


Robrus1
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Postby Robrus1 » Mon Jun 02, 2014 7:57 am

Closed accounts that are paid as agreed stay on your credit profile for 10 years after they have been closed, so your AAoA will not suffer. Cancel when ready.
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thom02099
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Postby thom02099 » Mon Jun 02, 2014 9:29 am

Robrus1 wrote:Closed accounts that are paid as agreed stay on your credit profile for 10 years after they have been closed, so your AAoA will not suffer. Cancel when ready.


+1. The impact of closing is on utilization, not AAofA.

If I were in your shoes, I would close the Helzberg since it's not likely to be used again. I would not close the Cap One, unless it has an AF; if not, just charge something occasionally on it. Depending on when you got the BofA card, at the 6 month milestone, ask for a CLI. If you could get an increase to $2500, then the impact of losing one card, but adding a higher limit on another, wouldn't be as adverse an effect on your utilization. I wouldn't close any other cards until/unless you had something to replace the loss of CL with, either another card or a higher CL on one of your keeper cards.
Retired, and in the process of retiring cards!
EQ = 846 EX=828 TU = 836 as of 02/2016

spy23714
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Location: Fort Worth, Texas

Postby spy23714 » Mon Jun 02, 2014 5:38 pm

Should I just hang on to the Helzberg card for utilization purposes and just let them close it when they may? Is there a ballpark time in which they'll usually close a card due to inactivity?

I see a lot of talk here about AF. Typically, from what I've seen, AF are between $19 and $79, but a lot of fuss is made about them. Is it the fact that you're paying the fee for a card you're not using and that is just a wasted $79, or is there something I'm missing? It seems like $79 over the course of a year isn't that big of a deal if it's helping in other areas like utilization or AAoA.

thom02099
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Postby thom02099 » Mon Jun 02, 2014 9:15 pm

spy23714 wrote:Should I just hang on to the Helzberg card for utilization purposes and just let them close it when they may? Is there a ballpark time in which they'll usually close a card due to inactivity?

I see a lot of talk here about AF. Typically, from what I've seen, AF are between $19 and $79, but a lot of fuss is made about them. Is it the fact that you're paying the fee for a card you're not using and that is just a wasted $79, or is there something I'm missing? It seems like $79 over the course of a year isn't that big of a deal if it's helping in other areas like utilization or AAoA.


Hanging on to the Helzburg is up to you. In that situation, I WAS in your shoes. I had a specialty card, Lumber Liquidators with a $3600 CL that I closed after I made a purchase and paid it off. I knew I'd never use it again, and at the time I'd just gotten another card with a $5K CL, so I didn't really lose anything with utilization.

AF is a judgment call. It's up to you (or anyone for that matter) to determine the worth. There are folks that do the math to the nth degree to determine if it's worth it. There are others that ballpark the value of an AF. There are a lot of AF that are a lot higher than $79 ($95 to $495). Again, "worth" is an individual value. If it's worth it to you, then it's worth it. Doesn't really matter what others think.
Retired, and in the process of retiring cards!
EQ = 846 EX=828 TU = 836 as of 02/2016



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