When to close a CC account?
Aug 1, 2012 | 1:52 pm
#1
Original Poster
Join Date: May 2009
Posts: 3
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!
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!
Aug 1, 2012 | 9:37 pm
#5
Join Date: Apr 2012
Programs: AA, UA, Hilton, Choice, Wyndham
Posts: 423
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.
Aug 2, 2012 | 2:16 pm
#6
Join Date: Oct 2007
Programs: Marriott, Radisson, AA, UA
Posts: 365
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. :-)
Aug 2, 2012 | 2:27 pm
#7
Join Date: Aug 2006
Posts: 756
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.
Mar 14, 2013 | 1:45 pm
#9
Join Date: Mar 2013
Posts: 179
When to close a card ???
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 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....
Mar 14, 2013 | 2:17 pm
#10
Join Date: Jan 2013
Posts: 502
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.
Mar 14, 2013 | 2:22 pm
#11
Join Date: Feb 2013
Location: Scottsdale, Az.
Programs: US Gold & AA Lifetime Gold
Posts: 216
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.
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.
Mar 14, 2013 | 2:22 pm
#12
Join Date: Sep 2011
Posts: 217
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.
Mar 14, 2013 | 2:31 pm
#13
Join Date: Jan 2013
Location: Brooklyn, NY
Posts: 17
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.
Mar 14, 2013 | 2:33 pm
#14
Join Date: Mar 2013
Posts: 179
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
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