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Question By
wcullen04

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cancelling a secured credit card
2 years ago I opened a secured credit card, since then I have been able to open 2 unsecured credit cards. my question is should I cancel my secured one. the bank that I have the secured one declines me for an unsecured one even after 2 years of perfect payments thank you

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Check what you lose if you cancel

Helpful to 15 out of 16 people

Having unsecured cards means you no longer need the 'secured' label on you. By all means you can cancel it. However, the only way this will affect you is 1. It will close your OLDEST CREDIT LINE, and thereby decrease your average credit history. Also, it will reduce your available credit. Here is the checklist I will ask myself before I cancel:

1. How 'old' are your new unsecured cards? were they opened within last 1 year? If yes, keep the secured. Because that has a 2 year history.  Keep the line open till the new ones build history.

2. What is the credit line on your new accounts and secured one? Like,if your secured has a limit of 300 and unsecured has 1500, then closing secured will not affect your 'available credit'.

If its too much dilemma, then see how much annual fee your secured card has. If it's not much, then keep it for a year or two (you don't have to use it). Ditch it when your new accounts age.

Reply by
robowilliams

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Helpful to 2 out of 2 people

I'm curious if you would be able to help me here, i have gotten a secured credit card (3 months ago), $1,000 availible credit line on it. I got it to establish credit history (Credit was never bad, just didn't have any). Now I was approoved for Paypal Credit (AKA BillMeLater). That was approoved for $801 credit line, should i see if I can get a credit increase before canceling secured? And should I also wait a year or 2 before canceling secured as long as I keep Paypal Credit. I just don't want it impacting my credit. My secured card on the other hand is a higher APR (19.99%) not knowing if I would want to keep it or not.

Thank you for any help!

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