Credit card I never use: close account?

[Anonymous]

I have this one account that I just never use anymore. I've had it a long time as a way to "build credit" and now mainly use the joint account and my debit card for rainy day/emergencies. Obviously, my credit was good enough to jointly own a house, etc. I don't even know the passwords or account information on this thing anymore. Do I close it, or keep it around, just in case I need it for something? TBH, it stresses me out to think about!

[Anonymous]

If this is your longest held card and you close the account, your credit score will definitely go down.

[Anonymous]

And even if its not the longest, your credit history takes into account both the oldest account and the average. I just cut mine up and leave them alone. I seriously have 10 plus credit cards I never use and my credit score is over 800 so I doesnt hurt anything to keep them open.

[Anonymous]

I would leave it open. Having more available credit will keep your score high.

[Anonymous]

It is good to keep a card in just your name too.

[Anonymous]

Anonymous wrote:And even if its not the longest, your credit history takes into account both the oldest account and the average. I just cut mine up and leave them alone. I seriously have 10 plus credit cards I never use and my credit score is over 800 so I doesnt hurt anything to keep them open.

This is not a good idea. It is a good idea to keep about 3-4 cards for that reason. After that, you are at high risk for identity theft. Yes, closing an account can lower your credit rating, but that is only a short-to-mid term effect. Long term, it will not hurt your credit rating. The advice to keep credit cards open is only if you expect to need to qualify for additional credit (CC's, refinance, new car loan, HELOC, etc) in the near term. If you don't expect to need those in the next 4-5 years, you should start to close accounts will good payment histories and no/low utilization rate.

Here's an article that gives a better idea of the risks:
http://www.bankrate.com/finance/credit/closing-credit-card-good-or-bad.aspx

[Anonymous]

I have one credit card I never use because they raised my rate after about 15 years of being a model customer. They told me it was nothing I had done wrong to get the increase, and they wouldn't lower it again. So they haven't gotten a penny of interest out of me in ten years- I just keep it for emergencies in case my other card gets compromised and I absolutely need a card.

[Anonymous]

I did a search and this thread popped up. I was going to cancel an American Airlines visa because of the annual fee. I've had this card for over ten years, have excellent credit and payment history, but can no longer justify the $100 fee. I used to justify the fee because I flew AA, used the card for everything, and accrued miles. Now I fly Southwest with my kids and have a SW visa (which also has a fee). I use the SW visa all the time and am accruing miles on that. Should I cancel the AA visa? I do use it, but don't really need it. I own my home and have no credit card debt. Thanks.

[Anonymous]

Anonymous wrote:I did a search and this thread popped up. I was going to cancel an American Airlines visa because of the annual fee. I've had this card for over ten years, have excellent credit and payment history, but can no longer justify the $100 fee. I used to justify the fee because I flew AA, used the card for everything, and accrued miles. Now I fly Southwest with my kids and have a SW visa (which also has a fee). I use the SW visa all the time and am accruing miles on that. Should I cancel the AA visa? I do use it, but don't really need it. I own my home and have no credit card debt. Thanks.

It's foolish to pay $100/year for a service that you no longer use. That's a really high fee considering most cards don't charge a fee at all. The drop in credit score because of a closed account is insignificant. It won't ever stop anyone from obtaining a loan or change the interest rate of your new mortgage. Your credit score is not like your GPA going into college where every tenth of a point makes a difference. The credit companies do use the score but they are not going to differentiate between 750 and 800. So, yes, you should cancel the cards you know you'll never use, especially if you're paying a fee.

[Anonymous]

Anonymous wrote:I did a search and this thread popped up. I was going to cancel an American Airlines visa because of the annual fee. I've had this card for over ten years, have excellent credit and payment history, but can no longer justify the $100 fee. I used to justify the fee because I flew AA, used the card for everything, and accrued miles. Now I fly Southwest with my kids and have a SW visa (which also has a fee). I use the SW visa all the time and am accruing miles on that. Should I cancel the AA visa? I do use it, but don't really need it. I own my home and have no credit card debt. Thanks.

I had the SW black card which has a $100 fee. I thought it was worth it because it was my only card with no intl fees and had lots of miles rewards. I recently called and said I wanted to cancel bc it wasn't worth it
To me anymore. They gave me a $100 statement credit on the spot to keep it open. Just thought I'd share in case it helps anyone else.

[Anonymous]

Anonymous wrote:I have one credit card I never use because they raised my rate after about 15 years of being a model customer. They told me it was nothing I had done wrong to get the increase, and they wouldn't lower it again. So they haven't gotten a penny of interest out of me in ten years- I just keep it for emergencies in case my other card gets compromised and I absolutely need a card.

Does it have any points or benefits? I have a card with a ridiculous APR, while the rest of mine are around 11-13%. It has great rewards though, so I use it like a debit card. It gets paid every 2 weeks when I get paid and I never pay interest.

[Anonymous]

I leave them open because, for me, I believe it helps my credit score. I also do it because, if I fall on hard times, I can charge them all up buying stuff before I file bankruptcy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I did a search and this thread popped up. I was going to cancel an American Airlines visa because of the annual fee. I've had this card for over ten years, have excellent credit and payment history, but can no longer justify the $100 fee. I used to justify the fee because I flew AA, used the card for everything, and accrued miles. Now I fly Southwest with my kids and have a SW visa (which also has a fee). I use the SW visa all the time and am accruing miles on that. Should I cancel the AA visa? I do use it, but don't really need it. I own my home and have no credit card debt. Thanks.

It's foolish to pay $100/year for a service that you no longer use. That's a really high fee considering most cards don't charge a fee at all. The drop in credit score because of a closed account is insignificant. It won't ever stop anyone from obtaining a loan or change the interest rate of your new mortgage. Your credit score is not like your GPA going into college where every tenth of a point makes a difference. The credit companies do use the score but they are not going to differentiate between 750 and 800. So, yes, you should cancel the cards you know you'll never use, especially if you're paying a fee.

Most airline cards charge a fee, don't think this is exclusive to AA.