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I have a old credit card about 3 years old its probably my oldest one. I pay a yearly fee on it. I have other ones that are not yearly fee costing, I would like to cancel the one that charges a fee. Would that affect y credit score badly since its my oldest one ?

4 Thoughts on Is it bad for credit score to cancel old credit cards?
  1. Reply
    Go with the flow
    December 24, 2012 at 8:55 pm

    It never makes sense to pay an annual fee on a card.
    ^ opinion.
    Cancel it.
    You are not even sure if it’s your oldest one.
    Check your reports once a year for free at
    annual credit
    No credit/debit card required. Leave it in your wallet.
    Review those reports line by line to check for accurary.
    Mistakes do happen.
    Do not be tempted to buy the score.
    Pretty useless 3 digit number that tells you nothing.
    As long as you are paying your other credit cards in full each month,
    you have excellent credit.
    If you are carrying balances, you know you have lower credit.

  2. Reply
    December 24, 2012 at 9:29 pm

    Canceling the credit card you’ll probably lose about 3/5 points which is no big deal since you have other cards that will boost your score between 5 to 10% per month providing you are paying on time.

  3. Reply
    December 24, 2012 at 9:44 pm

    If you have other cards, then it is OK to cancel this one. You need to have paid off your balance of course. It may impact your credit score slightly but not enough to pay $ 100 a year for an annual fee. Regularly using and paying off the ones you have are way more important.

  4. Reply
    December 24, 2012 at 10:42 pm

    You are digging around in your purse or wallet and find several old credit cards you don’t use anymore. Heck you can even be paying annual fees on some of those cards. Your first inclination is to cancel those old cards, but you don’t want it to lower your FICO score.

    You will want to be aware of a couple of key things before you decide which card to cut.

    1) Credit Utilization Rate Ratio

    This may sound scary, but it really isn’t. This looks at your total credit used compared to your available credit. The higher the ratio, the lower your FICO score. In essence by closing old, unused cards you will be lowering your available credit, thus raising your ratio.

    2) Length of Credit

    You will want to keep at least your oldest credit card. This helps for length of credit. For example if you have 3 credit cards and want to cancel one of them, it is recommended to cancel your newest one before cutting up the old ones.

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