I just cancelled a credit card I have not used in 3 years- how will it affect me?

Question

I just opened a new Disney Rewards card from Chase and transferred my balance from Citi- about $2500. I realized when I went to sign up online that I had another card from Chase that has not been used in about 3 years. I called and after much pleading from the Chase person closed my account. I have an excellent credit score- but is this going to make my credit score go down? I still have the Citi card should I keep that open or cancel that?

Answer 1

Some of the posters have made good points about whether closing that card has affected your score, but here's my take on it.

When you close an account 2 factors affect your score, the available credit and the length of time the card was opened which can affect the average age of accounts. Based on what your question, if you didn't use that Chase card for 3 years, then that tells me that you had to have had that card for far longer than that in order to get the Citi card that you transferred the balance to, so that would have meant that card was one of the oldest cards that you had. In this case it could affect your score. I know that hindsight's 20/20, but what you could've done was instead of opening another account, try to change the card you did have to the Disney one that you just opened. Now, that's not to say that Chase would do it, I don't work for them (I work for one of their competitors), so I wouldn't know if it's completely possible. It's too late to re-open the account to recover the history that you once had, but at least now you have an idea.

I just read the post from your other question, and yes a card with a $9,500 limit that has been opened for well over 5 years could have a serious affect on your score.

Answer 2

Well, it depends on how high the credit limit was. Let's say you have three CCs and combining the three limits, you have $15K available. Out of the three CCs, you have only charged a total of $5K between two cards. Let's say you close the card that you're not using and it had an $8K limit. Now all of the sudden, you look like more of a risk b/c your debt ratio is larger. Instead of owing $5,000 versus a $15,000 limit, you now owe $5,000 versus a $7,000 limit.
So you are affecting your debt ratio - which makes up 30% of your score.
The credit score will also take into account the length of history. Since the card is only three years old, that might not hurt too much. The older the account, the more impact it will have on your score. Just know that length of history makes up 15% of your total score.
Taking an educated guess, your score might suffer a big, but nothing too bad.

Answer 3

Closing an account that has been open for 3 years will have a minor negative effect on your credit score as length of account history is taken into account when the score is calculated.

Answer 4

The ideal situation is to open 2 or 3 cards and stick with them. The longer they are open the better your score gets. But, if you're going to open a new card and already have a few open, I'd close the one that has been opened the shortest amount of time..

Answer 5

little will effect your score. If you are thinking of purchasing a home you only need three active trade lines. These being a car, credit card, and even a store credit card. It is not necessary to have a lot of cards especially if you are not using them. Banks or other lending institutions are paying more attention to your pay history and how long you have had the account and the amount on the account that is left to be paid.

Answer 6

confident, it could negatively impact your credit. The open line of credit represents debt to ability lenders by way of fact of their innovations, you ought to circulate max out the cardboard at any time. consequently, you ought to cancel it or it will be factored into your debt to benefit ratio in case you prepare for credit.