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Question By
Thansgiving

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Should I just close my secured card?
Hi!

I'm hoping to get some advice. So I opened a secured card about four years ago (my first credit card), and just the beginning of this year, I opened my a Chase Freedom card, my first real adult credit card. I don't have any balances at all, but I'm considering closing my secured card for the following reasons:

- It only has a 300 limit; and I don't use it at all.
- I have about five late payments report on it--really, because I forgot about it and didn't have my notifications in place. I tried to dispute them, but it looks like they'll just have to roll off on their own.
- It has an annual fee of around 20 bucks.

The only reason I'm not sure if I should consider keeping it open is because it is my oldest card right now, and I'm nervous that my score will change drastically. My average Credit Karma scores are at 715. My Freedom card has a 2k limit, and I've been really good about keeping the utilization rate at or less than 20% a month, and pay the balance in full as soon as the statement is generated. I also plan on applying for a new card soon. I would've kept it if the secured card folks were willing to make an adjustment to my late reports, but now, I don't really see the point. I don't really need the card, and paying 20 a year for something I don't really need doesn't seem to be worth it. Unless the folks here are wiser about this matter and suggest that I keep it open, not using it or using it for stuff like a water bottle at a gas station. Any suggestions would be appreciated!

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You can ask the company for them to "graduate" your card from secured to unsecured. I know there's only a few companies that do that but you never know.

Also, the only reason I would keep it is if your overall credit limit amount would be affected greatly. Just remember anytime you close an account it will affect your credit score. 

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