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Question By
canesfan8193

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Want to open new credit card and close existing. Advice?
So, I currently have 2 credit cards.
-Credit card 1: 3 years old. Beginners credit card. Low limit.
-Credit card 2: 1 year old. Cash back card with reward limits. Higher limit.
I would like to open a unlimited cash back card to use as my primary credit card and close one of my existing credit cards (I don't want to deal with 3 credit cards). Which one would be better to close? Or is it recommended to not close any of them? Why?

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Top Contributor
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Don't close cards!!!

You apparently have not read the articles here  or you would not have asked that question.  Your credit score is based on the amount of credit you have been granted and the time you have had credit, among other things.  You close a card, you hurt your score.  Read the articles.  Teaching how credit works is what this site is about. I learned plenty here (and my score really improved!!) so you can, too.

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Closing your oldest account will definitely put a significant ding on your score (especially your Fico).  If you close your beginners card your credit history will now show your oldest line of credit to be 1 year instead of 3 years, making you less attractive to lenders.  In a few years after you've established a few more lines of credit and they've aged like a fine wine the hit for closing your oldest line won't hurt as bad.  My advice would be not to close your oldest card but rather leave the account open and simply not use it.  Closing the 1 year old card will do less harm than the 3 year old card but will subtract from your overall credit line, again negatively impacting your credit score in the short term.  The short of it is to leave both old accounts open and simply do not use them.

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