Cancel or keep?

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SumTingWongFoo
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Cancel or keep?

Postby SumTingWongFoo » Tue Mar 29, 2016 5:46 pm

Greetings!

I am hoping I could get some insight if i cancel a few cards and if any major impact it will have. I am wanting to close the Captial One QS1 and Captial One PC.

Here is my current assets.

Capital One Quicksilver One - 06/2015 - 1300
Captial One Platnium Card - 07/2015 - 2000
Citi Double Cash Back Card - 08/ 2015 - 2700
Chase Freedom Card - 02/2016 - 3000
Discover IT Card - 03/2016 - 4500

TU 669
Equifax 741


I don't really use the QS1 considering it has a 39 annual fee and there are no rewards with the PC. I took these cards to help build my credit back up and it has worked out big time but I honestly use the Citi and my main everyday card and Discover seeing it's double cash back after the first year plus bonus categories just as the freedom.

Any advice on this would be great. Thank you!!
CapitalOne Platinum - Capitalone QuickSilverOne - Discover it - Chase Freedom - Citi Double Cash - American Express Blue Cash Preferred


Elijahmex
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Re: Cancel or keep?

Postby Elijahmex » Tue Mar 29, 2016 6:40 pm

If it were me I would keep them for the time being. Those accounts are still pretty new and if you cancel you will hurt your AAoA which could have a negative impact on your CS. I also have the QS1 although mine does not have an annual fee. Cap1 has been very generous with the CLI and I like their customer service.
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Tubpbs
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Re: Cancel or keep?

Postby Tubpbs » Tue Mar 29, 2016 7:33 pm

Elijahmex wrote:If it were me I would keep them for the time being. Those accounts are still pretty new and if you cancel you will hurt your AAoA which could have a negative impact on your CS. I also have the QS1 although mine does not have an annual fee. Cap1 has been very generous with the CLI and I like their customer service.



I agree with this. I'm not sure if you have other accounts etc etc but it seems like it's worth the $39 and the energy and time required to keep the two accounts open for now. If you're rebuilding, all the positive information you can produce the better. Every month that each of those cards report "paid as agreed" or whatever equivelant, that is improving and augmenting your overall credit profile.

For the time being, I would hold on to your accounts unless you're not going to be able to keep track of them all.
Amex - BCP, Platinum, Business Gold
BoA - BankAmericard Cash Rewards
Chase - Freedom, CSP, RC, Ink Plus
Citi - DC, Prestige
Discover - It

SumTingWongFoo
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Re: Cancel or keep?

Postby SumTingWongFoo » Tue Mar 29, 2016 8:32 pm

Thank you both of you!

I will keep them open and continue to build my AAoA and credit. Thank you for the advice. I really appreciate it!
CapitalOne Platinum - Capitalone QuickSilverOne - Discover it - Chase Freedom - Citi Double Cash - American Express Blue Cash Preferred

DogDadNY518
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Re: Cancel or keep?

Postby DogDadNY518 » Wed Mar 30, 2016 2:30 pm

Question. I have seen this alot on the board - I am new hear and learning, but what does AAoA mean? The OP here just referenced it, and I see it mentioned all the time here. I looked around the forum and couldn't find any sort of glossary or commonly referred to terms.

Thanks everyone!
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kcm7
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Re: Cancel or keep?

Postby kcm7 » Wed Mar 30, 2016 2:58 pm

DogDadNY518 wrote:Question. I have seen this alot on the board - I am new hear and learning, but what does AAoA mean? The OP here just referenced it, and I see it mentioned all the time here. I looked around the forum and couldn't find any sort of glossary or commonly referred to terms.

Thanks everyone!


Average age of accounts. I'm not super sure on how important that is or how exactly it factors in, so hopefully someone can explain in more detail, but that's what it stands for, if you are eager to start Googling it.
Cards:

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

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kcm7
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Re: Cancel or keep?

Postby kcm7 » Wed Mar 30, 2016 3:27 pm

I don't really use the QS1 considering it has a 39 annual fee and there are no rewards with the PC. I took these cards to help build my credit back up and it has worked out big time but I honestly use the Citi and my main everyday card and Discover seeing it's double cash back after the first year plus bonus categories just as the freedom.


I may be going against the grain a bit, but are you trying to build your credit ASAP for something specific in the VERY near future? Like a mortgage or car loan?

Personally, if I had a card that had an annual fee and a small limit that I don't use, I'd just get rid of it and continue to build my credit with the cards I actually do use. UNLESS I was about to apply for a mortgage (in which case you need to keep things pretty steady credit-wise).

My understanding is that AAOA shouldn't be a huge concern because FICO keeps a card as part of your history for 10 years. Honestly, I didn't realize AAOA was a "thing" until coming to these forums. I'd never taken it into account. I've never kept a card around if it had an annual fee and I didn't use it.

The thing you'd potentially need to worry about is your utilization. If your balances on your other cards are high, then eliminating a card with a $1,300 card can hurt you. But honestly? You have some decent limits on your other cards, so $1,300 is probably not a big deal.

Again, I don't credit-build for credit-building's sake, and I only keep around cards that are useful to me. And I've been fine.
Cards:

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

SumTingWongFoo
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Re: Cancel or keep?

Postby SumTingWongFoo » Wed Mar 30, 2016 4:27 pm

kcm7 wrote:
I don't really use the QS1 considering it has a 39 annual fee and there are no rewards with the PC. I took these cards to help build my credit back up and it has worked out big time but I honestly use the Citi and my main everyday card and Discover seeing it's double cash back after the first year plus bonus categories just as the freedom.


I may be going against the grain a bit, but are you trying to build your credit ASAP for something specific in the VERY near future? Like a mortgage or car loan?

Personally, if I had a card that had an annual fee and a small limit that I don't use, I'd just get rid of it and continue to build my credit with the cards I actually do use. UNLESS I was about to apply for a mortgage (in which case you need to keep things pretty steady credit-wise).

My understanding is that AAOA shouldn't be a huge concern because FICO keeps a card as part of your history for 10 years. Honestly, I didn't realize AAOA was a "thing" until coming to these forums. I'd never taken it into account. I've never kept a card around if it had an annual fee and I didn't use it.

The thing you'd potentially need to worry about is your utilization. If your balances on your other cards are high, then eliminating a card with a $1,300 card can hurt you. But honestly? You have some decent limits on your other cards, so $1,300 is probably not a big deal.

Again, I don't credit-build for credit-building's sake, and I only keep around cards that are useful to me. And I've been fine.



Hoping to be in a good position here in about 2-3 years for a home mortgage. This is what I am building towards right now. What I am worried about is... cancelling the QS1 and PC or just the QS1 where my currently creditors like Chase, or Citi might cancel or reduce my CLI. Is that possible or does that even happen?

If not, I might consider it more, but then again I might wait a year or so before considering again.
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 » Wed Mar 30, 2016 5:57 pm

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.

Also, to your question at the end, it is very unlikely that any of the banks you mentioned would take hat action for closing those other accounts without you also doing something else they don't like. That being said, anything is possible, we have no way of knowing at any of them will do.
Amex - BCP, Platinum, Business Gold
BoA - BankAmericard Cash Rewards
Chase - Freedom, CSP, RC, Ink Plus
Citi - DC, Prestige
Discover - It

thom02099
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Re: Cancel or keep?

Postby thom02099 » Wed Mar 30, 2016 6:57 pm

My understanding is that AAOA shouldn't be a huge concern because FICO keeps a card as part of your history for 10 years.


^^^ This.

AAoA (Average Age of Accounts) and AAoOA (Average Age of Open Accounts) are terms you'll find all over the creditcardosphere. The 2nd one is used frequently in conjunction with CreditKarma, which factors open accounts, but not closed accounts.

Of more importance is the affect it will have on your utilisation and the available credit you'll have, if you close those 2 cards you suggested closing. If you can take the $3300 hit reduction in available credit, then do it. If not, don't. Really that simple. As the others have suggested, if it were me, I'd keep them open for the time being. The fee card you can think about closing when the annual renewal date comes around.
Retired, and in the process of retiring cards!
EQ = 846 EX=828 TU = 836 as of 02/2016



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