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Missmassa

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Keep a credit card open or close it?
I've had a CC through Capital One for over 5 years. It's been a very good card to help me build my credit, but I'm tired of the annual fee. I was told by a Cap1 representative that I could apply for a new card (without an annual fee) and merge the accounts, then close the old one, so I wouldn't have an annual fee anymore - all while preserving my credit score. I set up the new CC, which increased my credit score substantially, but then found out that closing the old CC might hurt my credit score because my length of credit might decrease.

Now I'm thinking I don't need the new CC, and I'm not sure whether or not I should keep it. Is it worse to open and close a CC in a short amount of time, or to keep the CC open and never use it?

Thanks for all your help!

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Top Contributor
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You are making things way too complicated for yourself. You said the new card helped your credit, but now you are thinking about canceling it. WHY?

Yes, closing the other account won't be good for your credit, but if you really want it closed, then close it and take the ding.

While Vantage systems don't factor in closed accounts to average age of accounts, FICO models do factor in closed accounts to the average age of accounts.

Most lenders use FICO scores, so they are more important.

Understand that building and maintaining good credit requires short-term damage. That is the way that it is.

What you should do: Spend some time reading about all of this. Stop obsessing over this stuff. Keep the new card. Your credit should work for you, you should not be a slave to it. Dings here and there while building accounts are normal and necessary.

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