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  1. #1
    Registered User New Member
    Posts
    4

    Closing Cards After Opening

    Hello,

    So I have an odd situation.



    I got a pre-qual offer from a bank for a card, and so I took it since I am currently working to get rid of old cards I got when my credit was damaged. Plus they gave a sign up bonus. I have had it about 3 months. Shortly after that, I saw they upgraded another type of card I have been wanting, so I applied and got that one too.

    Now the bank is willing to combine my credit limits of both into one card, but it would cancel the other one out as closed by my request.

    I know that your length of history weighs about 10% or so on the factoring, and I know the drop in my score now is due to recently opened accounts and will go up steadily, but what I am wondering is whether cancelling that one card after combining the limits would be a good idea or not.

  2. Closing Cards After Opening
  3. #2
    Registered User Senior Member
    Posts
    242
    Does the card have an annual fee? If so, I would drop it. Your score will take a hit, but it will recover. But not worth paying money for that.

    One caveat: if you know you are taking out a loan in the near future, you might want to keep it until the fee comes due again.

  4. #3
    Registered User New Member
    Posts
    4
    No the card has no fees to it thankfully, though an older card I have does and that one I am thinking of closing out despite the hit. I am not planning on any loans for at least a year if not more. I just felt it seems silly to keep it when I know I wont be using it much at all.

  5. #4
    Registered User Semi Pro Member
    Posts
    271
    I undertsand your thinking. It does seem wasteful to keep a card that just sits unused. But sometimes you have to game the system. It may be you need a new line of credit when you least anticipate it.

    Definitely close out that card with the fee, though.

    And good luck, Twililght.

  6. #5
    Registered User New Member
    Posts
    4
    Hm okay. I have no balance on that card now, so would dropping the limit down to the minimum, and moving the extra to the card I want hurt my credit at all?

  7. #6
    Registered User Semi Pro Member
    Posts
    271
    I wouldn't change the credit limit for the old card. That could adversely impact your credit utilization (which is just the ratio of current debt to total credit available). Instead, I'd just forget about the card entirely. I know that seems silly. But that is how these credit bureaus want you to play the game.

  8. #7
    Registered User New Member
    Posts
    4
    Oh well my total credit line amount will remain the same, as I would be transferring the line amount to the new card. I am just wondering if dropping a credit line on a card on its own would be damaging or not.

  9. #8
    Registered User Semi Pro Member
    Posts
    271
    I think even dropping the max available credit on that card will have a short to medium term hit on your credit.

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