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stevegoodrichmusic

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Cancelling a credit card
I have a capital one credit card I've had the longest it only has a $200 limit. I also have a credit one card I got a year later with a $400 limit. I rarely use either of them and I want to cancel one of them. Will that impact my credit score negatively. If not which one should I cancel? Please help

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Do your homework

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Both are 1 year apart, so it really shouldn't be a big issue, however, as a rule of thumb, try to hold onto your old cards,unless they are costing you a fortune. Also, they are 1 year spaced, but how long how you got them both (like 4-5 years back)? that's important.

IMO, first, check if you really need to cancel them. You don't use them and they don't harm you, so why kiil any one? Still, if you cancel, here is a hypothetical projection of it's impact:

CANCEL THE NEWER: Available credit goes down. Credit score takes a hit. But if you don't have outstanding debt, don't worry about it. Also, if you have a lot of other available credit, then it's fine.

CANCEL THE OLDER: This will change your 'average credit history'. Again, score takes a hit. If you have opened few accouts recently, canceling an older account can be deadly, as the 'avg history' will change significantly. Generally, leave your older accts open as they strenghthen your 'credit age'. Also, builiding 'credit age' is one of the slowest area for improvement. You simply have to wait and let them 'age'. So, do your homework.

Both 'credit age' and 'available credit' are prime factors in credit score, so think before you cancel. Do some score simulations online, check your report and see how much it can hurt you. Then decide. I would still suggest leave them both alive.

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I got them 4 years back. I also have 2 newer credit cards with a total of $5000 limit. My older cards only $200 limits. 

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4 Year old cards? Don't cancel. period.

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Though they have a mediocre credit limit, they have a valuable 4 YEARS of history. Don't cancel them. As someone else said, use them once in a while (even for a charge as small as $5) and pay off, just to make sure they don't get closed due to 'inactivity'. That history counts man! and it is really slow to build up to it.

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