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Question By
uday029

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Cancel card or change to a no fee card?
Last year I got a travel card (with annual fee of less than $100) as I was expected to travel a bit for work. This year I applied for a travel card with better benefits (annual fee of more than $400) as my job requires me to travel a lot more for next one or two years. Since I will be using my new card for all of my travel related purchases, I am not sure what to do with the old card. Since I have not lived in USA for my entire life, I noticed that one of the main impacts of applying for new cards is that my "age of credit history" has come down to less than 4 years now (from 8+ years). Now my question is, what is the best option for my old travel card? Cancel my old card to increase my age of credit history OR change it to a no fee card to retain history associated with old card?

Any help is appreciated. Thank you.

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Close or Transfer Doesn't Affect Age

Helpful to 2 out of 2 people

Regardless of what you decide, the age of your credit will not be affected.  Most credit bureaus use both open and closed accounts to calculate the age of your credit.

You have to decide whether or not you want your credit score to take a downward hit.  If you are planning major purchases in the next few months where yur credit score must be at its best (home, car, etc), I would transfer to a no fee card.  If you do this, be sure to use it a few times during the year to prevent the bank from closing it due to non-use.

If you don't mind the temporary score drop, close the account.  Your score will increase as you pay your accounts on time and the new card starts to age.

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If I was in your shoes, I'd close the card I do not plan to use.  Yes, your credit score may decrease because of the average age of open tradelines, but it will soon recover as you make timely payments on all other accounts and keep your balances low.  The driving factor for me would be paying an annual fee to keep a credit card that I have not intentions on using.  I'd rather find more entertaining ways to throw money out the window.

Reply by
uday029

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I also have an option of converting the old card to a "no fee" card and retain the credit line and history associated with it. That way I don't have to pay the annual fee.

Top Contributor
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PC the card

PC the card to a no annual fee card and use it at least once a year to maintain overall low utilization, available credit, average age of open accounts and a stronger relationship with the bank.

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