Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Cards
Profile Image

Question By
atul4bits

1 Contribution
0 People Helped
wish to close credit cards with annual fees, opened to collect points
Chase saphire card, Amex Delta Gold card and AA Platinum Advantage card both having annual fees.

all of them opened less than a year back

i opened few Credit lines to gain points but now wish to close some of them specially AA platinum card and Amex Delta gold card. They gave me good credit limits. my current credit karma score is excellent.

is there any other negative impact on my credit history other than credit score getting little low.

does it impact your application -vely to when u apply for home loan or auto loan.

any inputs will be really helpful

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-4 of 4Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
986 Contributions
544 People Helped
Most Helpful Response

Helpful to 1 out of 1 people

I am just reading between the lines here... 

-

However, I am fairly cretain when you applied for those cards, you have pretty good idea that you are going to close them before the year is up to avoid AF. You can't obtain those cards without having a solid credit profile and probably have good grasp on how credit/credit card works, not to mention have plenty of other cards in your wallet . So just in case you didn't know or haven't done it already? You can always ask them to wave the AF, if you have another AmEx, Citi cards? you can ask if they are willing move the limit to other card before you close them. I would keep the CSP even with AF.

-

Closing credit card accounts "shouldn't" less your chance for getting loan(s), under some limited circumstances? It might even be advised to do so to lower one's DTI ratios. Of course some credit card issuers don't like you open and close cards in short periods, they see it as you are "churning" for the sign up bonus, could be one of the reasons Chaes implemented the 5/24 rule to slow them down.

Reply by
atul4bits

1 Contribution
0 People Helped

thanks. And u read the between the lines pretty well :). Except i have lots of Credit cards in my wallet. I have 4 (one with out Fee and 3 with fee as mentioned above).

i will ask them to move these cards lines/limit to different products w.o. fee Lets see what they say.

Thanks.

Top Contributor
7344 Contributions
3805 People Helped

I suggest you try the credit simulator program on this site so you can get a clearer idea of exactly how much your credit score would be impacted by closing the cards because it won't be just a little bit.  Re-reading the articles on this site would be a good idea.  The only reason to get a card is because it is something you might want to use, not just because of points.

Top Contributor
784 Contributions
297 People Helped

I open cards for points and rewards.  If they cease to work for me, I close them out, but only after applying for another card so my available credit won't be impacted. You need to understand credit and be on top of your situation if you're going to play this game.

Top Contributor
5038 Contributions
1131 People Helped

Closing cards is usually a bad idea regarding your credit, doing so would drop your credit and that would affect your applications for credit for mortgage/auto in a negative way. My advice is DON'T DO IT and do some extensive reading about credit.

Results 1-4 of 4Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.