Will cancelling my first credit card hurt my credit score?

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jruel003
 
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Joined: Tue Feb 05, 2013 6:38 pm
Location: Pomona, CA

Will cancelling my first credit card hurt my credit score?

Postby jruel003 » Tue Feb 12, 2013 11:43 pm

Currently I am 23 years old and I got my first Credit Card at age 18 through a joint account with my father. It's a US Bank Platinum and at the time also got a 19,500 dollar car loan through them (never missed or had a late payment on either and the car loan is payed off). I was thinking of closing my Platinum joint account since I don't want to have a joint account with my father anymore. I currently have a 730 CS and have other credit cards listed below:

-Best buy CC
-US Bank Premier line
-Amex Premier Gold
-US Bank Platinum (same as joint but this one is on my own)

So my question is how can I find out how closing US Bank Platinum CC joint account (being the eldest account) will affect my Credit Score being that it was my first card and have the longest history?


Daniel
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Location: US

Postby Daniel » Wed Feb 13, 2013 5:54 pm

Explicitly, decreasing the average age of one's accounts, should have a negative influence on one's credit score. I would be willing to throw a bit of money down that closing that card will have a small downward influence on your credit. I am pretty sure that CreditKarma, Quizzle and the others have a simulator you could use here. It should have an option for "closing my oldest account" which is exactly what it sounds like you are doing.

From my own personal experience, my score dropped like less than 10 points when I closed my oldest tradeline (coincidentally it was a USBank Platinum as well). I had 13 tradelines at that time and my average age of accounts was 6 years old, the USBank card was 8.5 years old. Does anyone else have personal experience with this?

kcarter609
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Postby kcarter609 » Wed Feb 13, 2013 8:08 pm

The only thing it will do is affect your utilization percentage because that card's limit is no longer factored into your available credit. It stays on your report for 10 more years, so it will continue to age.

Active Cards:
Chase Freedom 10+10 Visa Signature ($9k Limit - 8/2012)
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)
AMEX Blue Cash Everyday ($20k Limit - 1/2013 - Backdate to 1/2010)


RewardHop
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Location: USA

Postby RewardHop » Wed Feb 13, 2013 11:03 pm

kcarter609 wrote:It stays on your report for 10 more years, so it will continue to age.


+1

In ten years, you should have sufficient age from your other cards to make up for that anyways.
[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]

Daniel
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Location: US

Postby Daniel » Thu Feb 14, 2013 10:40 am

kcarter609 wrote:The only thing it will do is affect your utilization percentage because that card's limit is no longer factored into your available credit. It stays on your report for 10 more years, so it will continue to age.


Isn't it average age of open accounts?

jruel003
 
Posts: 2
Joined: Tue Feb 05, 2013 6:38 pm
Location: Pomona, CA

Postby jruel003 » Thu Feb 14, 2013 6:14 pm

Thank you guys for all your information. I don't have a creditkarma account yet. I think I'm gonna make an account now after hearing about the simulation (I only have a mint.com account). So thank you guys for all this valuable information. My goal is to get over 800 CS. Do you guys have any tips on how I can increase my credit score? Do I need to have certain amount of credit cards or variety? (How many cards are good to have?)

- US Bank Platinum (joint account) CL-9.5k
-Best buy CC CL-750
-US Bank Premier line CL-13k
-Amex Premier Gold CL-NL
-US Bank Platinum (same as joint but this one is on my own) CL-5k

I also don't have any car loans right now but probably will soon. Thinking of purchasing a car soon.



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