jondabomb

I have a Chase Mileage plus select card with a high credit line that is my oldest CC. It costs $95/year to keep and I never use it.
It gets 3 miles per $ for united purchases and 2 miles per $ for a few other categories and 5,000 miles on my anniversary.
None of those benefits really matter to me, but its my oldest credit card and has a high spending limit.
Is it worth keeping the card just to keep that credit limit and history? Should I transition that card to a free product or is there something else about the Mileage Plus Select worth keeping? They dont offer it anymore.

Dr Jabadski

As with many questions like this the answer is “it all depends”. FWIW, I faced the same decision with the same (10 year old in my case) card for the same reasons 1-2 years ago. I changed to the no-fee version 2 years ago and then closed the account a year ago.

It depends on the age and number of other accounts, how compulsive you are, exactly how much the benefits matter and your personal tolerance for calls to get an annual fee equivalent credit. In my case I had 2 other cards each over 35 years old and a bunch of (churned) cards each 1-2 years old so closing one 10 year old account did not have much effect. (I am loath to close either of the 35 year old accounts.) So if you have a bunch of other accounts that are almost as old, closing that one should have little effect. On the other hand, if it’s WAY older than just a few other cards that you have, closing it might have deleterious effects.

I’m fairly compulsive, having an open account that served no purpose just bothered me. Only you can speak to that aspect of your decision.

Some would consider 5,000 UA miles to be worth $95, some would not. I used to spend a lot on UA purchases so the 3 miles per $ were significant, that changed a few years ago when I achieved lifetime status. Again, only you can speak to those aspects of your decision.

I would suggest at the least, discussing with Chase any possible retention offers (which might offset the AF) for the account. If you have other Chase personal credit cards, I’d also suggest reallocating the credit limit to those other cards, particularly if you decide to close the account.

Hope this helps some.

notquiteaff

It was my oldest card by far (other than Amex “Member Since 1993” ... not sure how that is counted), going back to the days of the United Platinum Visa. I downgraded it last year to the NAF MileagePlus visa, which is just about worthless. I should call and see if I can switch to the newer NAF Gateway card.

https://creditcards.chase.com/travel...united-gateway

Super Mario

In the vast majority of scenarios, keeping a card open that you are not using and paying $95 a year is going to cost you more than a few points of credit score would benefit you. Maybe someone can put together an extreme scenario for the sake of arguing my point. Length of credit history is only 15% of your FICO score. Closing your oldest account doesn't cause you to lose that 15% either.

jondabomb

Thanks for your thoughtful reply. This card is 10 years older than most others and has a large line of credit. They have no retention offer, but it may make sense to keep it since it has the longest history and most credit. Its $95 a year....Not worth losing sleep over.

Id love to know this too. - referring to the post re: "In the vast majority of scenarios, keeping a card open that you are not using and paying $95 a year is going to cost you more than a few points of credit score would benefit you. Maybe someone can put together an extreme scenario for the sake of arguing my point. Length of credit history is only 15% of your FICO score. Closing your oldest account doesn't cause you to lose that 15% either."

MDtR-Chicago

The myfico.com forums tends to be a good place to investigate these concerns in detail. Here is a particularly good thread: https://ficoforums.myfico.com/t5/Und...h/td-p/5326123

My reading is:

1. Remember that a closed account in good standing stays on your report for 10 years and continues to factor into most calculations.
2. The factor "Average Age of Accounts" (AAoA) is more important than the single oldest account on the report.
3. Therefore focus on AAoA, which includes closed accounts while they still report.
4. If you are obsessed with a perfect FICO score, the forum believes you need a minimum Oldest Account of 17 years.
5. Oldest Account, in particular, seems to have a relatively minor swing. (See the story of a person who had two cards, including a very old one, drop off unexpectedly, and in aggregate lost 10-20 points.)

Based on all of that, I think the advice is "avoid closing old accounts" is a good rule of thumb but paying an annual fee, especially if you otherwise have a thick/old credit file, is probably not worth it.

Personally, I keep several very old no-annual-fee cards I have accumulated over the years and make sure to charge something on them occasionally. That way, if one accidentally gets closed for whatever reason, there are always more cards aging past 17 years so I don't have a problem 10 years from now.

A Discover card is a particularly good option, as occasionally the quarterly 5% categories line up nicely. I've also kept my United Select card open over the years because most of the time I break even, between the 5k miles yearly bump and typically one solid targeted spending offer particular to that card each year.

Super Mario

According to Transunion, my FICO score is 850. My first credit card was a secured card 15 years ago, which was closed after a few years of building credit. My next oldest account was a Citi Dividend, also closed. I believe my 13ish year old Chase Freedom is my oldest.

FriscoHeavy

It's important to note that even if you close it, it will continue to 'age' and stay on your credit reports for 10 years. So, the initial closure will likely not impact you more than a few points, if at all (assuming you aren't carrying other credit card debt and it throws off your debt to available credit ratio, known as 'utilization'). If I were you and get 'no value' from it, close it.

With that said, I'd probably consider downgrading to a no-fee card or open up a new no-fee card (like Chase Freedom) and once open, reallocate nearly all of your existing credit line over to the new card, then close the old United Card.

Hope this helps.

mary mary

If you have other Chase cards you can call and move credit limit to a different card so cancelling won't impact you overall utilization. I personally wouldn't pay $95 a year year after year just to keep that card alive.

edealinfo12345

I closed a Chase credit card account with 10K credit limit, and voila, to my astonishment, Chase Credit Journey said it had a "positive" impact on my credit report. Go figure!

RNE

The only cards I keep long-term are those with no AF. Just saying.

Dr Jabadski

And those that PAY YOU (with minimal effort) each year. For example, Hilton Aspire, $450 AF with $500 low hanging fruit credits and a free night every year .

FriscoHeavy

Have you closed the card yet?

edealinfo12345

I agree with this 100%

uastarflyer

The MP Select annual 5k miles is minimum $50 and usually better. That plus periodic bonus offers, and “break glass in emergency” premier qualifying points option keep it in my active list 20 years and counting even with a $95AF.

My teenage daughter is now an authorized user too. I live dangerously...