atomarchio

A few years ago, I opened a Chase credit card to get reward miles on United. Then we started using Southwest so I opened another chase account to get Southwest miles.

Then I received a letter today saying from Chase saying they are close to my United card within 60 days because I haven't been using it. Also, using the card won't help either as they will still close the account.

I am fine with them closing the account but wondering if this will hard my credit score in a significant way. Is there anything I can do there to minimize that?

Please let me know. Thanks.

CodeAdam10

If you want to keep the account open, see if you can convert the card into a fee-free card like the Freedom Unlimited, and then use it once every six months.

Merlinrnr

Another option to minimize the effect on your credit score is to request them to transfer the credit line from the United Card to the Soiuthwest Card before closing the United.

Kacee

The only reason it would substantially impact credit score is if loss of the unused credit limit would substantially increase your credit utilization (percentage of available credit you're using), particularly if it takes utilization over 30%.

If that is a problem, you can counter it by transferring the credit to another card (as suggested above), getting a new card with a similar credit limit, or paying down your balances to reduce utilization.

garykung

No.

No.

Critterlynn

So how long has it been since you have used it?

Etp

atomarchio

I forgot to mention that when I switched from the United to Southwest card, I did call chase and asked them to remove the annual fee for that card. So I have already done that.

It's probably been 18 months or longer since I've used the card. The letter states using the card now will not keep it open.

These are the only two credit cards I own so this would take me down a single credit card. I don't necessarily mind that but want to avoid the hit on my credit.

The United has 20K limit and the southwest has 30K. These cards both have a zero balance and I have no debt at all.

Does it make sense to call chase and have the 20K limited on the United card moved to the southwest card?

flyershmlyer

You're a classic definition of a person that worries too much (prolly from reading here and elsewhere) when they shouldn't.

People worry about their credit and the hits they take when they're actively applying for cards. You aren't.

They make concerted decisions which cards to close and which to apply/open. You haven't opened/closed in a while, and only reacting because your ccard contacted you.

You have no problem getting 20K and 30K limits, when you want credit. so I wouldn't worry about how your credit looks - it looks just fine.

Moreover, you don't need additional credit now, so don't worry about how your credit looks now, or whatever hit it might take now.

You can move the credit over or not, but at the end of the day it won't matter much for you. Your credit is/will be fine either way.

Kacee

Closing the United card will have no meaningful impact on your credit score. Don't worry about it.

There are lots of great card offers out there if you're interested in getting a new card and earning sign up bonuses.

atomarchio

I am going to move the credit limit from my United to Southwest card.

It's good to know that closing the United card will not hurt my credit score in a significant way.

Thanks to everyone for their input.

sleuth

Oreto

I was wondering the same thing myself. If it has an annual fee, Chase has no incentive to close it down as they are probably not doling out bennies in excess of what the annual fee would cost the OP. However, that all changes if it is a fee-free card.

atomarchio

My united card did not have a fee as I was not going to pay the $99 for both cards. I was surprised to get the letter from chase saying they are closing my united card even if start using the card. You would think the letter which would've had me using the card at least a few times would benefit them.

They were easy to deal with on the phone and happy to move the united credit line to the southwest card.

if my score does decrease by doing this, I will post that here so others are aware.

pallhedge

The fact that you will only have one remaining credit card open after Chase closes the United card will impact your score. I don't think significant would be the right word, but it will certainly be measurable. Since this was your oldest open card, your age of accounts might also take a small hit. If the United card isn't much older than your Southwest card, then this is a non-issue.