When To Cancel?

Discuss the Visa & MasterCard payment networks as well as cards that operate through them.
5 posts
kcarter609
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Location: VA

When To Cancel?

Postby kcarter609 » Thu Aug 23, 2012 6:26 pm

Hi,
If anyone read my previous post, you already know this, but I'll give a quick run-down anyway.

I have a PNC Points Visa card I got as my first card at 18. It has a $500 limit. Age of account = 3 years, 2 months.
I have a Capital One Platinum Mastercard I got at 18 also, it has a $750 limit. Age of account = 2 years, 11 months. (Maybe 2 years, 10 months - I forgot).
I have an AMEX Gold, 2 years, 8 months old.
I have a car loan from Chase, 2 years, 3 months old.
I just got approved 2 weeks ago for a Chase Freedom with a $5k limit.

Current AAoA with all above listed accounts = ~2 years, 2 months

My plan is to get a BCP in January, so that will be 1 more card that has a 3 year age since I got my Amex Gold in 2010.

If I cancel the PNC Points and Capital One cards, my AAoA (In January after getting BCP) will be ~1 year, 10 months.

The PNC Points and Capital One cards are absolutely useless to me now. I don't want them any more. I know cancelling them will affect my average account age, but all of my accounts are so young I can't see it making much difference. 4 months shouldn't affect much, right?

I don't plan on applying for any more cards except the CSP, but I'm going to wait probably 2 years from now at least to do it, since I don't see a reason to spend $2,500 on random stuff.

What do you guys think?

Thanks,
Kevin

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)


CC Deville
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Postby CC Deville » Thu Aug 23, 2012 8:10 pm

Cancelling the cards will not hurt your AAoA. They will remain on your credit bureau (hopefully) for 10 years after the date of closure. Their open dates will still be factored into your AAoA until they are deleted from your bureau. The only thing that will change is that their credit lines will no longer be factored into your debt to credit ratio. But that shouldn't be a problem with their toy credit lines compared to your new $5K Chase card.

What will affect your AAoA is any new credit card accounts that you open.

I'd keep the PNC card just for kicks. I still have my first credit card and now that I am in my early 30s it is kind of s exy to see a nearly 15 year old open credit card on my bureau. But if you have no use for the card, then by all means close it. You are on the right track to building a solid credit profile.

kcarter609
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Location: VA

Postby kcarter609 » Thu Aug 23, 2012 10:27 pm

CC Deville wrote:I'd keep the PNC card just for kicks. I still have my first credit card and now that I am in my early 30s it is kind of s exy to see a nearly 15 year old open credit card on my bureau. But if you have no use for the card, then by all means close it. You are on the right track to building a solid credit profile.

I'll still have my Amex Gold open since January 2010. And the Chase Freedom from 8/12. I don't so much care about the cool factor. I want the best options for me with the least cards possible.


Also, what is a better option? Cancel them now, or wait until January after I get the BCP?

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)

CC Deville
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Posts: 1067
Joined: Thu Aug 04, 2011 7:07 pm
Location: Phoenix

Postby CC Deville » Fri Aug 24, 2012 3:52 pm

kcarter609 wrote:I'll still have my Amex Gold open since January 2010. And the Chase Freedom from 8/12. I don't so much care about the cool factor. I want the best options for me with the least cards possible.


Also, what is a better option? Cancel them now, or wait until January after I get the BCP?


Thats fine. Just giving you my opinion. I'd wait until you have the new card before cancelling.

kcarter609
Centurion Member
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Posts: 423
Joined: Thu Aug 09, 2012 7:54 am
Location: VA

Postby kcarter609 » Fri Aug 24, 2012 7:53 pm

Yeah I figured as much. I'll do that and hopefully get $2k limit or better on the BCP.

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)



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