Cancelling oldest credit card?

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Vattené
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Postby Vattené » Sat Apr 18, 2015 8:55 am

I say dump it. Normally I'd recommend keeping a card open when you're building if it's not costing you anything and you don't mind monitoring its activity for fraud. Closing an account does come down to personal preferences, but to me it's not worth paying for a horrible credit card just for scoring purposes.

It sounds like you don't anticipate any immediate credit needs. If you're not planning on financing a car or getting a mortgage soon, then you don't need to scrape for every FICO point you can get in the short term but can instead focus on positioning yourself well in the long term. Takeshi pointed out there will be a hit to your score because of utilization (closing this card will reduce your overall credit limit, so the ratio of outstanding credit card balances to the total limit will increase), but a closed account and its positive payment history will stay on your credit report for years. To improve your credit score in the long term, open a new account or two now so they can start aging and reflecting good payment histories.

Others have posted on the forum in the past about that weird credit line hold. It is something only the lowest quality lenders do. Reputable lenders won't hold your credit line after the payment has processed; Amex, by contrast, releases it the second you hit the "submit payment" button.

If your credit is decent (no derogatory marks or at least very few late payments showing), then there are a ton of credit card options out there that won't play games with you and won't cost anything (or will have an annual fee that is compensated by perks/rewards, if you're interested in that). Since it's costing you money and you have no use for it, get rid of First Premier and don't look back!
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now


whit
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Postby whit » Sat Apr 18, 2015 9:37 am

xoxoyazyxoxo wrote:OH DUH. Yes. The annual fee was added with the rest of the statement.



First Progress. It happened twice so I started paying closer to the due date and never had any problems. So right now I'm holding off the payment until after next week. Hm it bugs me though that I'm going to have to keep it though. When would it be okay to cancel the card? Never? 3,5,10 years from now? Paying an annual fee for something I don't use sounds like a pain.


If there wasn't an annual fee i would keep it for a few more years just because, and I would have it on autopay with something small like 7.99 Netflix membership on it.

However since there is an af and you've already have it for two year; and you're saying it generated good credit for you--I would apply for another card. A nice one like discover it or chase freedom or boa 321 or amex everyday

Once approved I would talk with first progress and cancel the card and ask to be refunded the for unused months.

Your credit will take a hit but as long as you don't plan on going on an app spree in near future you should be fine

amex007
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Postby amex007 » Sat Apr 18, 2015 9:41 am

I agree with Vattene. I have 2 cards that I have no use for and low CLs but I keep them for the history length and also because they have NO AF. If either of them had an AF, i would dump them so fast.
Get a card to replace it but dont keep open a card you dont like when it has an AF.
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amex007
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Postby amex007 » Sat Apr 18, 2015 9:45 am

whit wrote:If there wasn't an annual fee i would keep it for a few more years just because, and I would have it on autopay with something small like 7.99 Netflix membership on it.


Lol thats what i do with my GM card.
Amex Gold NPSL | Amex ED 28500 | Barclaycard Arrival 17500 | Hyatt visa signature 5000
sockdrawer-- GM 4000 | Unionplus 2200
EX 795 EQ 786 TU 790

flan
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Postby flan » Sat Apr 18, 2015 1:00 pm

JamesMS wrote:I've heard of them but never had any dealings with them. That sounds kind of shady to me. I mean, you would think that they want their card holders to pay but who knows.


They're a rebuilder/builder/subprime card. Not as shady and scummy as, oh, Credit one or First Premier. I'd see if you can get them to waive the annual fee (just call 'em up, and ask). If you can't, close the account. In six months or so, get another card from a big issuer (Chase, amex, discover, BoA, Capital one, citi...) that you don't already do business with.

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InCreditWeTrust
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Postby InCreditWeTrust » Tue Apr 21, 2015 6:50 pm

If you do decide to cancel the credit card, one member here told me the account history of the cancelled credit card remains on your credit history for several years, so the average age of your credit history will not be immediately impacted if the former is correct.

xoxoyazyxoxo
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Re:

Postby xoxoyazyxoxo » Tue Apr 28, 2015 5:23 pm

Vattené wrote:I say dump it. Normally I'd recommend keeping a card open when you're building if it's not costing you anything and you don't mind monitoring its activity for fraud. Closing an account does come down to personal preferences, but to me it's not worth paying for a horrible credit card just for scoring purposes.

It sounds like you don't anticipate any immediate credit needs. If you're not planning on financing a car or getting a mortgage soon, then you don't need to scrape for every FICO point you can get in the short term but can instead focus on positioning yourself well in the long term. Takeshi pointed out there will be a hit to your score because of utilization (closing this card will reduce your overall credit limit, so the ratio of outstanding credit card balances to the total limit will increase), but a closed account and its positive payment history will stay on your credit report for years. To improve your credit score in the long term, open a new account or two now so they can start aging and reflecting good payment histories.

Others have posted on the forum in the past about that weird credit line hold. It is something only the lowest quality lenders do. Reputable lenders won't hold your credit line after the payment has processed; Amex, by contrast, releases it the second you hit the "submit payment" button.

If your credit is decent (no derogatory marks or at least very few late payments showing), then there are a ton of credit card options out there that won't play games with you and won't cost anything (or will have an annual fee that is compensated by perks/rewards, if you're interested in that). Since it's costing you money and you have no use for it, get rid of First Premier and don't look back!


Well.... I am graduating from college next year so I may or may not be getting a lease on a car or something like that.

I just got a credit card with my bank, I have no derogratory marks, just a very short average length of credit. It's weird because it also says I only have 1 credit card account, when I should have 2 now?

Nixon
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Re: Cancelling oldest credit card?

Postby Nixon » Tue Apr 28, 2015 9:47 pm

Probably wouldn't hurt to close.
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Vattené
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Re: Cancelling oldest credit card?

Postby Vattené » Tue Apr 28, 2015 9:51 pm

The number of accounts reporting isn't a big concern. You say you just got it, so it probably just hasn't shown up yet. It will soon.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now



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