Cancel account or not?

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Riptide
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Cancel account or not?

Postby Riptide » Wed Mar 04, 2015 9:57 am

I have three cards. Two mastercards and a VISA.

One mastercard is a low APR card that I have through my bank. I hardly ever use it. It's an account I've had for 10+ years now. I don't want to cancel this one.

The second mastercard is a CITI double cash which I just started to use and is the cat's meow. Also not going to cancel this bad boy.

The card I am considering cancelling is a capital one quicksilver. I've had it for a couple years and had used it a lot until I got the CITI. The CITI is a better deal.

Is there any good reason to keep the capital one VISA at this point? I hardly ever use it now. Will it harm my score by closing that account?


thom02099
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Postby thom02099 » Wed Mar 04, 2015 2:23 pm

If there's no annual fee, just sock drawer it and take it out for a spin every few months or so. No harm in keeping it.
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JonE
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Postby JonE » Wed Mar 04, 2015 7:03 pm

It depends on where your score is and how strong your credit profile is. As said before if it doesn't have an AF then just put it aside and use it sparingly. But if you truly don't see a need for it, don't be afraid to close it. I'm not one of those who believes in keeping cards you don't find useful, especially since it stays on credit for 10 years after it's closed. It will affect utilization, but if your limits are already high enough it should be a wash.
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CarefulBuilder14
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Postby CarefulBuilder14 » Wed Mar 04, 2015 8:05 pm

I say keep it. You might find a merchant that takes Visa but not MC.

Or you might have fraudulent activity on the DC and need a new card number. The QS presumably has better rewards and would be a better backup card than the really old card?

Or you might travel internationally and use the QS to avoid foreign transaction fees. I don't know if your old card would save you from those, but DC certainly charges them.
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Riptide
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Postby Riptide » Thu Mar 05, 2015 8:11 am

Are there really merchants that take VISA but not MC? I haven't run into one that I can recall. Not that they don't exist.

The old MC with the low 9% APR has a 10K limit on it. I work for the bank that issues it which is why I've had it for so long.

The CITI DC has a 6K limit. The Capital One VISA has a 5K limit on it.

My score is somewhere in the 770-790 range. As far as utilization goes I never carry a balance on any of my cards. Pretty much ever.

I definitely don't have any real need for the Capital One which is why I've been thinking about dumping it. It's been open for about two years now. I just don't want to see my score take a nosedive.

Brad Bishop
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Postby Brad Bishop » Thu Mar 05, 2015 10:18 am

CarefulBuilder14 wrote:I say keep it. You might find a merchant that takes Visa but not MC.


Normally I'd say to just close what you're not using and not worry about it. That being said, you may need to pay one day and that merchant may take Visa but not MC. It's a slim possibility but I've seen it a few times in my adult life (like 3 times in 25 years).

If you keep it for that reason then it's important to keep it in your wallet. It doesn't do you any good to keep it for being a Visa if it's at home in a drawer.

takeshi
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Postby takeshi » Thu Mar 05, 2015 11:00 am

Your call to close or keep it open. People will suggest what they would do but you need to consider your own preferences and priorities as well as credit/scoring considerations. I think I recall reading a thread that there was a scoring benefit to having less than 50% of your cards reporting a balance but you'd need to confirm that.

Closing will immediately impact utilization. You can do the math before and after to see the impact to help you decide. AAoA is not immediately impacted.

If you can't or won't continue to actively monitor the card for fraud then don't SD it.

JonE wrote:It will affect utilization, but if your limits are already high enough it should be a wash.

It's not just a matter of limits but balances as well. Anyone making such a decision should just do the math. It's not difficult: balance(s) / limit(s)

Riptide
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Postby Riptide » Thu Mar 05, 2015 11:52 am

OK.

What I am tempted to do is put in for a CLI on the Citi DC first. Then when I cancel the Capital One my overall limit won't suffer. Nor will my utilization figures. The score might temporarily drop 5-10 points but I can't think of any other negative outcome other than the fact I won't have a VISA and will be MC only at that point.

Incidentally I have a Kaiku VISA but it's a debit not a CC. Still I think I'd be covered if I find a merchant that takes only VISA and not MC. The Kaiku is also good for international use.



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