Best way to cancel a credit card?

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Ronisonce
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Best way to cancel a credit card?

Postby Ronisonce » Fri Jan 04, 2013 6:44 pm

I have a couple of cards that I haven't used for quite a while because I have the Bank of America Rewards Card as well as the Discover Card. What is the best way to close out cards that I haven't used for over a year, some longer? I assume closing the accounts all at once would hurt my credit score negatively.

All suggestions welcome. I currently have 3 cards I'm not using, 1. Best Buy 2. Bank of America Student Visa 3. Barclay iTunes Visa.


Money card
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Postby Money card » Sun Jan 06, 2013 12:57 am

I would just call the back of the card and speak to an account mgr tell him/her that you want to cancel your card.

RewardHop
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Postby RewardHop » Sun Jan 06, 2013 2:24 am

Money card wrote:I would just call the back of the card and speak to an account mgr tell him/her that you want to cancel your card.


That.

I highly recommend you do not close your oldest cards, thats what hurts your credit score. If your average age of accounts drops significantly as a result of closing a card, your score will probably drop. Just keep it in a drawer provided theres no annual fees. Theres nothing wrong with having 3-5 credit cards total, thats average.
[size=60]
Amex BCE: 3% grocery, 2% gas
Bank of America Better Balance Rewards MC: $25/quarter bonus
Barclaycard Rewards Visa Signature: 2% gas, groceries, utilities
Capital One Quicksilver Visa Signature: 1.5% everything
Chase Freedom Visa Signature: 5% rotating
Citi Forward Visa: 5% restaurants/fastfood, movie theaters, amazon.com
Discover It: 5% rotating
SallieMae MC: 5% Groceries, Gas, Amazon
US Bank Cash+ Visa Signature: 5% electronic stores, restaurants
Sock Drawered: Chase Sapphire, Chase Amazon[/size]

MemberSince99
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Postby MemberSince99 » Sun Jan 06, 2013 7:08 am

Money Card hit it right on the head - it's really just that simple.

Some of them will try to talk you into keeping it (one of the few good things about Crap One is they WON'T - they seemed THRILLED every time I called to cancel) but just tell them you've made up your mind and don't use the card and never will again and don't want or need it and please cancel it. End of story.

Ronisonce
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Postby Ronisonce » Sun Jan 06, 2013 2:54 pm

haha, I'm obviously not THAT dumb. I know I can just call the number. I just didn't know what the better option was with respect to just holding onto cards I've had for a long time or just closing them. I was unaware that closing cards that I've had the longest hurts your credit score. I should have clarified my question. I'll just buy something on my older cards, pay them off and then throw them in a drawer in my office. Then rinse and repeat next year.

jrv
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Postby jrv » Sun Jan 06, 2013 3:53 pm

Your best bet is to leave the accounts open and cut them up or put them in a sock drawer. Closing them may hurt your score & your credit utilization ratio.
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MemberSince99
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Postby MemberSince99 » Sun Jan 06, 2013 3:57 pm

It depends. If they are of the Credit One or First Premiere variety with hideous annual fees, once you get better cards, GET RID OF THEM and take the hit on your score. It will come back and then some if you take care of your good cards.

Otherwise if they have no annual fee and aren't eating you alive, doesn't hurt to leave them open and use them once every 6 months. If any of them close it for lack of use, oh well you won't be heartbroken.

kcarter609
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Postby kcarter609 » Sun Jan 06, 2013 5:39 pm

Ok, someone clear this up. I'm seeing conflicting answers everywhere. I know it affects utilization, I understand that part. Does it affect AAoA though? People say they stay on your report for 10 years. If it does, HOW?

Active Cards:
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Chase Sapphire Preferred ($10k Limit - 2/2013)
Chase Ink Plus ($7k Limit - 2/2013)
Discover IT ($9.5k Limit - 10/2012)
AMEX Zync (No Pre-set Limit - 1/2010)
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MemberSince99
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Postby MemberSince99 » Sun Jan 06, 2013 8:13 pm

Yes it affects AAoA. Say you have one account you've had for 4 years, and 2 others you've had for 1 year. You have 3 accounts with a total age of 6 years so your average age of account is 2 years. Close the one that's 4 years, and then you have 2 accounts with 2 years total so your AAoA is now 1 year. Will it affect your score? Probably a little. Would it hurt more if your closed account was a lot older? Sure it would.

As far as staying on your report 10 years that is true - accounts that are closed and not delinquent report on your credit for 10 years. (Delinquent accounts report for 7).

Money card
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Postby Money card » Sun Jan 06, 2013 8:16 pm

I would agree with everybody here that Ronisonce should keep his/her oldest card open , but looking at the cards the poster has.
a Best buy card, a student Bank of america card and a Barclays Itune visa credit card, there's no sense keeping these cards open.

if the poster said they had there union credit card a best buy mastercard and a chase slate then I would understand them keeping the cards open.
but not the ones he/she has.



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