How much will it hurt my credit score to cancel a high limit credit card?

[Noland]

I have a card from a bank that I do not want to do business with any longer.

I want to cancel it, but I have read that canceling a card with a high limit could actually lower my credit score.

The limit on this card is 25k, which is more than the combined limits of the other two cards that I have.

I don't care about the credit card but will I take a ding on my credit score if I drop it?

I care about my score because I do occasionally borrow for a vehicle and I want to get the lowest rates when I do.

 

[trnsplntfrmohio]

it will bring your avail credit down which will in turn show you may have less of a credit history and obviously avail credit. My advice is too keep it, and use it to buy a pack of gum every 6 months (to avoid inactivity fees) and then pay it off the moment you get home.

 

[rambone]

Another thing I have heard is that you should keep your oldest line of credit open, so your credit history appears longer.

 

[Kick]

I have a stack of cards in my safe. I pay them all on-line or by phone. I pay them COMPLETELY OFF every time I use them and rotate one in/out of my wallet every month. Keeps the history "active".

 

[jsharmon7]

Good advice so far, definitely keep the card active and use it periodically to keep it in good standing. A credit score is based on many things. How much you owe vs. how much credit you have available is one of those things. That 25k that you have free offsets any other debts that you owe. For example: you have a balance of $1,000 on another card with a $5,000 limit. Keeping your current card active shows that you owe $1,000 but have $29,000 free. If you cancel the card, it shows you owe $1,000 and have only $4,000 free.

Rambone is also correct about length of credit history. If you've had the card a while, more of a reason to keep it active. I can't believe how often I've agreed with rambone in the past couple of days, I need a vacation.

 

[Noland]

I am done doing any other business with this bank, but I think I will reluctantly keep the card. I have had it for 19 years, which makes it my longest term open account by far.

Thanks fellas.

 

[Noland]

Dreaded double-tap.

 

[38special]

Meh. Who cares?

I closed all my cards after I paid them off. Pay cash for everything and then your FICO doesn't matter.

 

[ocsdor]

Food for thought: For every credit card account you have, that is one more you have to keep an eye on for any fraudulent activities.

What is more important is to pay off your bills on time, and pay the full balance of the credit card bill each month.

 

[theweakerbrother]

Call Dave Ramsey and ask him.

 

[Clay]

Call Dave Ramsey and ask him.

lol!!!!!!! best answer!!!!!!!!!!!!!!!!!

 

[lyric911]

Meh. Who cares?

I closed all my cards after I paid them off. Pay cash for everything and then your FICO doesn't matter.

Respectfully disagree. Credit checks are becoming more and more common as part of the hiring process.

 

[1946]

I've got to respectfully disagree.
I paid off and then closed out a high end c. card a few years back, it didn't affect my rating at all.

 

[IncendiaryGunner]

Negotiate and see if you can get them to give you no annual / inactivity fees.

If they say no, ask to speak with whatever department can cancel the card.

Then, negotiate with them for the same no annual / inactivity fees / whatever else you want.

If you have had the card for awhile, the billing department will have sway to "retain" you. Even if they do not, you still do not have to cancel.

 

[lyric911]

More on topic I guess - depending on how much other debt you have, your debt to available credit ratio can skyrocket (bad) when closing a high limit account.

 

[cburnworth]

I haven't had a credit card in about 10 years. I pay cash for everything, including medical. I get killer cash discounts. I have a credit score that I don't care about. I will never buy a new car again. The cars I buy are a few years old & again I pay cash.

 

[DRob]

If you can't pay cash

I like the concept of cash only but many of us simply can't do that. Nothing short of a big lottery hit will ever put me in that position. So, credit scores seem to be important to the majority. Experience tells me the only thing worse than bad credit is no credit! "Cash is king" but in today's world, credit is the Ace!

 

[T-rav]

Odd Ive canceled 4 or 5 cards over the past seven years and my credit score has always went up. I get quarterly updates on my credit and so far so good!

When your looking to get a loan through a bank for a house or car they are more concerned with your debt to income ratio more than anything.

 

[patience0830]

I love debt score

Good advice so far, definitely keep the card active and use it periodically to keep it in good standing. A credit score is based on many things. How much you owe vs. how much credit you have available is one of those things. That 25k that you have free offsets any other debts that you owe. For example: you have a balance of $1,000 on another card with a $5,000 limit. Keeping your current card active shows that you owe $1,000 but have $29,000 free. If you cancel the card, it shows you owe $1,000 and have only $4,000 free.

Rambone is also correct about length of credit history. If you've had the card a while, more of a reason to keep it active. I can't believe how often I've agreed with rambone in the past couple of days, I need a vacation.

Y'all should listen to the Dave Ramsey show a few times. I say dump the cards, live inside your means. Keep an emergency fund to keep Murphy at bay. Live like nobody else so later you can live like nobody else. If you have cash you don't need a credit score. If you don't have a car payment you can save for a car and shop for a good deal with CAAASH, BABY!

 

[patience0830]

WOOHOO

I haven't had a credit card in about 10 years. I pay cash for everything, including medical. I get killer cash discounts. I have a credit score that I don't care about. I will never buy a new car again. The cars I buy are a few years old & again I pay cash.

YEAH,BABY!UR my Hero! I'm not there yet but I"m workin on it.