Credit Card Programs - When to close a CC account?

Hello all ...

I drop by here every now and then and I recall -somewhat foggy - reading a while back that one shouldn't close a credit card in any less than 18 months?

Is that accurate? Did I remember correctly?

I have a Citibusiness Visa card that gave 75,000 AA miles last year. Besides the initial transactions that I needed to get the miles, I just don't use it much. Not really seeing a reason to keep it.

But by the same token, I don't want to cancel it too soon and have any kind of negative effect on my credit score (which is, otherwise, fine ... between the 3 scores, I'm in the 809-820 range).

Thanks!

for no annual fee cards... never. unless you want another card from the issuer and they won't approve you without closing out that account or for churning reasons

If theres a fee on the card, it's cool to close after 12mos ya?

If the card has an annual fee I wouldn't wait until AFTER 12 months to close it; I would close it before the 12 months prior to the annual fee hitting.

If the card has an annual fee I wouldn't wait until AFTER 12 months to close it; I would close it before the 12 months prior to the annual fee hitting.And if it's a Citi card and you want a downgrade, I'd get the ball rolling at about the 9 or 10 month mark. That's because the downgrade takes 45 days, and I'd rather not hassle with having the annual fee get posted, then need to get rolled back.

AA Citibusiness Visa has an annual fee. You might want call in at around the 9th or 10th month to close it. They usually will give you some bonus miles to hold on to the card longer. But you can always call in again to close it before the 12th month. :-)

And if it's a Citi card and you want a downgrade, I'd get the ball rolling at about the 9 or 10 month mark. That's because the downgrade takes 45 days, and I'd rather not hassle with having the annual fee get posted, then need to get rolled back.

Not always true. Waiting until last minute and annual fee due gives more reason for them to try and keep you as customer (waive fee or give points etc). More incentive as they have no time left as fee due now and you will have to cancel card now if they don't counteroffer.

You might close a credit card that suddenly raises your interest rate or introduces an annual fee. Your credit card issuer will probably close the credit card for you if you decide to reject these new credit card terms.

I'm somewhat new to the game, and am not sure when to close a card.

I used to think "6 months to 1 year"...as I figured this would give me some "legitimacy," but, ensure I wasn't getting hit with any annual fees on a "free for the first year" card.

But, now that I realize a lot of AMEX have the "can't get the bonus if you've had the card within the last year" policy, I figure I should close them within a month or so of getting the bonus, so I can start the clock running.

Does this make any sense?? If so, is there a "standard" right way to do things??

Any advice is appreciated....

I think it really depends on the bank. Citi? Cancel it after 60 days, who cares. They have a group of drunks running their computer system it appears (though maybe recently someone brought a big pot of coffee over with the death of the 2 browser method). I wouldn't hold onto an Amex or Chase card for <6 months myself, because I value my relationship with those banks a lot.

My personal rule is to keep until just before the AF is due and if they make me a good enough retention offer, and I like the card, I keep it. Maybe this has a slight slowing effect on churning but from a fico standpoint, and considering that retention offers aren't sweet enough in many cases, you are still able to "rotate" through cards.

There are more than one way to skin a cat but the one method I am totally against is the "get the card,get the bonus, and immediately burn the card" approach. I think it's bad on many levels.

I think based on what I have read here is that generally it is a bad idea to cancel the cards immediately after getting the bonus. One should keep the card open till at least the time AF hits, and then at time, move the CL and then cancel. That is what my understanding is, though I could be wrong.

Based on what I have read in plenty of travel as well as financial blogs, it is best to let it age a bit as your credit score is affected by the average age of your credit cards. The older the average age, the better it will be for you. I also agree with the previous responses about keeping a good relationship with the card company. You might get flagged if you take the sign up, grab the bonus, and shut down approach.

Thanks, all, for the input.

I didn't realize they'd "flag" you...but definitely don't want that.

I guess it's better to sit on it, and get the "turn" every 18 - 24 months...rather than get "flagged", and never get the "turn".

Thanks again

unless there is an annual fee that can't be offset by benefits or rewards, there is seldom a good reason to close a card.

I only close a card when the annual fee is do and the benefits don't out way the fee. Or when the card is keeping me from getting another card.Other wise what's the big deal about keeping it and letting it age?

unless there is an annual fee that can't be offset by benefits or rewards, there is seldom a good reason to close a card.

Here's what I'm thinking...let me know the error in my ways...

The AMEXs (ie--SPG, DELTA, GOLD, ETC) Say you "can't get the signup bonus if you've had the product within the last year"...

So, don't I need to close it to get the clock moving on the "1 year"?

Also, if an issuer only lets yu have a certain number of cards (ie--only 4 chase cards at one time--or whatever)...doesn't canceling cards free you up for more signup bonuses??

ALSO--Note I'm not concerned about my credit score...just interested in keeping the signup gravy train flowing...

Your beginning to sound greedy, don't forget if you start to look like a customer that is not profitable the banks will not continue awarding you CC. You don't care about your credit scores, just want to get all that you can. This is not sustainable, it will work for the short term however most of us look for a plan that will work in the long term.

I'm still a newbie particularly in regards to CCs. I just opened up a new CC, but was only given a $500 CL. I have other CCs with the bank (Chase). Should I call the rep and ask her to switch around the CLs of the other cards I am really not using or should I just close them (to open up available credit)? Also will it cause them to do another hard pull on my credit - so soon after I got one for opening a new CC? Thanks in advance.

IMHO, a $500 CL is a warning shot from the bank. Take it very easy.

I note that, IME, Chase hands out CLs in the $5K to $20K area very freely.

What kind of card brought you this tiny limit? Do you anticipate a bonus on the card?

If it were me, I'd use the card to approach the limit every month for a few months, paying in full and before the due date.

Good chance the bank will then raise your CL.

Or, perhaps, you are a student or very low income person and that creates the issue.

We need more details from you.

Say you have a card with an annual fee. The first year was waived, but you know you will be charged soon. Your options are to pay, ask them to waive it again, convert to a fee-free card or cancel. When do you call? Before the fee is charged? After it shows up? Does it depend on what your objective is?

I've read to do it a few months out. then every month up until the year mark.
if you're closer than that just call a month before and ask for a retention bonus. if they say no then you decide what to do

Here's what I'm thinking...let me know the error in my ways...

The AMEXs (ie--SPG, DELTA, GOLD, ETC) Say you "can't get the signup bonus if you've had the product within the last year"...

So, don't I need to close it to get the clock moving on the "1 year"?

Also, if an issuer only lets yu have a certain number of cards (ie--only 4 chase cards at one time--or whatever)...doesn't canceling cards free you up for more signup bonuses??

ALSO--Note I'm not concerned about my credit score...just interested in keeping the signup gravy train flowing...

I can understand where you are coming from. I like to take advantage of sign-up bonuses as often as possible.

That said, I am keeping my (high signup bonus) cards a minimum of 6 months UP to a year. Occasionaly I'll hold onto a fee card if I like it (Chase Sapphire Pref).

At the same time, I'll hold onto other (fee free) cards from the same issuing bank indefinitely (ie churn Amex Gold...hold Amex Blue).

Maybe I balance my good and bad karma that way? :cool:

Yes I have the same dilemma. My last AOR was in 6 cards in August 2012, and then another 4 in Feb 2013, should I cool it a bit? Or keep going till the banks keep approving me? I am getting greedy here I know but who knows when these offers may end?

What are the chances of getting shut down by the big boys - like Amex or Chase? I am all for letting the market decide and keep maxing out my apps till the banks start declining me regularly.