Cancel or keep?

For just about anything you want to get off your chest about credit cards.
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kcm7
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Re: Cancel or keep?

Postby kcm7 » Thu Mar 31, 2016 10:50 am

Tubpbs wrote:I think the advice given by KCM is poor. It ignores the positive impact of positive reporting from accounts in good standing etc etc. Every time you pay an account as agree (whether it's $4 or $3,200), the lender reports that you paid your bill on time that month. This is valuable data for someone trying to strengthen their credit profile. If you are trying to rebuild or build a strong credit profile, at this point in your process, I think it would be wise to keep the accounts open. I would certainly try to change the product with an annual fee to another without one, but otherwise I'd personally keep them both open.


Respectfully agree to disagree, then.

The crux of the matter is whether the OP wants to buy a sweater or a pack of gum on the $39 AF card every month (or put a utility bill on it) in order to get the "payment history" points. Otherwise, it's just a dormant AF card that would do as much for OP's credit dead or alive (assuming OP's utilization is low enough).

With several other cards in good standing (and being used regularly), that should be enough to build credit quite rapidly. If OP only had one or two other cards, I'd say keep the $39 AF card and buy the gum. But, if the OP cancels the QS1, that's still four cards to charge on every month and get all the payment-history love from FICO. I'd be hesitant to say to anyone with certainty that having regular payments on 5 cards would be significantly better than 4.

Also, as OP's cards are all roughly the same age, one factor weighing down his/her score is probably length of credit history -- which won't be affected by saving $39 a year and cancelling the card.

Personally, I've been pretty merciless about cancelling my low-limit credit-building cards as soon as I was able to do better. At the time, I didn't really know much about credit building. I just figured "I don't want this card. I'm going to cancel. And I'm going to get better cards to replace the cancelled ones, use them, and pay them off on time." My credit profile was even thinner than the OP's in 2014 (and still is!). My score is now above 800.

In the end, I don't think the OP would torpedo their credit by following either of our advice. My point was simply that he wouldn't anger the FICO gods too much by saving $39 a year.
Cards:

-Capital One Quicksilver
-Barclaycard Arrival (no AF)
- US Bank (no rewards)
-IHG


SumTingWongFoo
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Re: Cancel or keep?

Postby SumTingWongFoo » Thu Mar 31, 2016 11:43 am

Thank you all!

All very good points, and sticking with the Cards for now is probably best solution. I think down the road, once we get into further AAoA it will make more sense at that point if I decide to cancel. Right now, to keep them to help the overall UTIL makes sense. Really good insight, and advice from all points and aspects! I appreciate it!



Thank you!!
CapitalOne Platinum - Capitalone QuickSilverOne - Discover it - Chase Freedom - Citi Double Cash - American Express Blue Cash Preferred

Tubpbs
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Re: Cancel or keep?

Postby Tubpbs » Thu Mar 31, 2016 4:33 pm

kcm7 wrote:
Tubpbs wrote:I think the advice given by KCM is poor. It ignores the positive impact of positive reporting from accounts in good standing etc etc. Every time you pay an account as agree (whether it's $4 or $3,200), the lender reports that you paid your bill on time that month. This is valuable data for someone trying to strengthen their credit profile. If you are trying to rebuild or build a strong credit profile, at this point in your process, I think it would be wise to keep the accounts open. I would certainly try to change the product with an annual fee to another without one, but otherwise I'd personally keep them both open.


Respectfully agree to disagree, then.

The crux of the matter is whether the OP wants to buy a sweater or a pack of gum on the $39 AF card every month (or put a utility bill on it) in order to get the "payment history" points. Otherwise, it's just a dormant AF card that would do as much for OP's credit dead or alive (assuming OP's utilization is low enough).

With several other cards in good standing (and being used regularly), that should be enough to build credit quite rapidly. If OP only had one or two other cards, I'd say keep the $39 AF card and buy the gum. But, if the OP cancels the QS1, that's still four cards to charge on every month and get all the payment-history love from FICO. I'd be hesitant to say to anyone with certainty that having regular payments on 5 cards would be significantly better than 4.

Also, as OP's cards are all roughly the same age, one factor weighing down his/her score is probably length of credit history -- which won't be affected by saving $39 a year and cancelling the card.

Personally, I've been pretty merciless about cancelling my low-limit credit-building cards as soon as I was able to do better. At the time, I didn't really know much about credit building. I just figured "I don't want this card. I'm going to cancel. And I'm going to get better cards to replace the cancelled ones, use them, and pay them off on time." My credit profile was even thinner than the OP's in 2014 (and still is!). My score is now above 800.

In the end, I don't think the OP would torpedo their credit by following either of our advice. My point was simply that he wouldn't anger the FICO gods too much by saving $39 a year.



I can agree to disagree on this.

I certainly understand your points. I would make a big distinction between building and rebuilding in this scenario.

Only question I'd leave you with: what would your position be if neither card had any annual fee?
Amex - BCP, Platinum, Business Gold
BoA - BankAmericard Cash Rewards
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Citi - DC, Prestige
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kcm7
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Re: Cancel or keep?

Postby kcm7 » Thu Mar 31, 2016 4:57 pm

Tubpbs wrote:
Only question I'd leave you with: what would your position be if neither card had any annual fee?


It would depend on the limit. If it were decent (and the APR low), I might keep it around for emergencies. Hence my old U.S. bank card I still have.

If not, I'd cancel. I just don't like having open cards I don't use often, because it's another account that could get hacked. Just another thing to keep track of.

I'm actually probably going to cancel my Quicksilver soon. I got it for a very specific project, and that's been paid off. I am about to pull the trigger and apply for a new card, so, if I get that and the limit is to my liking, I'll probably get rid of my QS.

I do agree that OP needs to chill and build for a while. Perhaps no new cards until the credit history has lengthened a bit.
Cards:

-Capital One Quicksilver
-Barclaycard Arrival (no AF)
- US Bank (no rewards)
-IHG

Tubpbs
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Re: Cancel or keep?

Postby Tubpbs » Thu Mar 31, 2016 5:11 pm

kcm7 wrote:
Tubpbs wrote:
Only question I'd leave you with: what would your position be if neither card had any annual fee?


It would depend on the limit. If it were decent (and the APR low), I might keep it around for emergencies. Hence my old U.S. bank card I still have.

If not, I'd cancel. I just don't like having open cards I don't use often, because it's another account that could get hacked. Just another thing to keep track of.

I'm actually probably going to cancel my Quicksilver soon. I got it for a very specific project, and that's been paid off. I am about to pull the trigger and apply for a new card, so, if I get that and the limit is to my liking, I'll probably get rid of my QS.

I do agree that OP needs to chill and build for a while. Perhaps no new cards until the credit history has lengthened a bit.


Word. Agreed.
Amex - BCP, Platinum, Business Gold
BoA - BankAmericard Cash Rewards
Chase - Freedom, CSP, RC, Ink Plus
Citi - DC, Prestige
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Vattené
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Re: Cancel or keep?

Postby Vattené » Thu Mar 31, 2016 9:19 pm

OP have you considered trying to PC from QS1 to QS (the regular no AF version of QuickSilver)? The QS1 is meant more for builders/rebuilders and your credit is still pretty new, so I don't want to get your hopes up too much that Cap One will let you, but it is worth a shot IMO. If they won't let you it's still something to keep in mind down the road once your credit is more established if you would still like to keep the account open.
-Vattené
FICO-8: EX - 827 (5/17) | TU - 824 (5/17)
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SumTingWongFoo
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Re: Cancel or keep?

Postby SumTingWongFoo » Thu Mar 31, 2016 10:48 pm

I do agree that OP needs to chill and build for a while. Perhaps no new cards until the credit history has lengthened a bit.


Word. Agreed.



Yes... Agreed on both! Thank you.
Last edited by SumTingWongFoo on Thu Mar 31, 2016 10:53 pm, edited 1 time in total.
CapitalOne Platinum - Capitalone QuickSilverOne - Discover it - Chase Freedom - Citi Double Cash - American Express Blue Cash Preferred

SumTingWongFoo
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Re: Cancel or keep?

Postby SumTingWongFoo » Thu Mar 31, 2016 10:51 pm

Vattené wrote:OP have you considered trying to PC from QS1 to QS (the regular no AF version of QuickSilver)? The QS1 is meant more for builders/rebuilders and your credit is still pretty new, so I don't want to get your hopes up too much that Cap One will let you, but it is worth a shot IMO. If they won't let you it's still something to keep in mind down the road once your credit is more established if you would still like to keep the account open.


You know... I did think about that but wasn't sure if it was possible. It won't hurt to keep them open and especially to get the AF removed for a regular QS card. I'll give them a call and see what they say.
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Elijahmex
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Re: Cancel or keep?

Postby Elijahmex » Fri Apr 01, 2016 7:17 am

Vattené wrote:OP have you considered trying to PC from QS1 to QS (the regular no AF version of QuickSilver)? The QS1 is meant more for builders/rebuilders and your credit is still pretty new, so I don't want to get your hopes up too much that Cap One will let you, but it is worth a shot IMO. If they won't let you it's still something to keep in mind down the road once your credit is more established if you would still like to keep the account open.


The QS1 is the very first credit card I received when I moved back to the US last year in Feb and mine has no AF. It certainly did help me build my credit though...

There were 2 or 3 times I called them to cancel the card ( I was playing mind games with the CSRs ) and they did everything in their power to keep me as a customer.

Maybe the OP can simply ask to have the AF waived if he cannot PC
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