What would happen if I canceled my only credit card account I’ve had for the past 10 years with good credit?

6 Comment(s)

1. I know this doesn’t answer your question, but you could opt to have them lower your limit to, say, $500.00 or something so you’d still have the credit card. It’s always good to have something there in case of emergency.

   I highly doubt this would negatively affect your credit score, but don’t mark my words.

   multitaskju@att.net | Sep 25, 2009 | Reply

2. If you close it, your credit score will drop, probably not dramatically, but it will drop. By closing a credit card, it tells the 3 credit bureaus that you cannot handle having credit because you’re afraid that you might overspend and cannot pay it back. If you can, keep it open even if you don’t have a balance on it. It’s awesome that you have had a credit card for 10 years. You probably get your limit increased every 6-12 months (if you have good credit) so keep it open because if you have a balance on your other credit cards, make sure you keep those balances at least 30% below your overall credit limit.

   Mai | Sep 26, 2009 | Reply

3. Do Not Do That:

   Your credit report would take an immediate hit because the only line of credit you have is now gone.
   The oldest credit card accounts give you the highest boost to your credit score because a 10 year “good” payment history is a real plus on a credit report. Cancel it and it will be gone and you have no history to show.

   Besides… if you have balances on that card then they come due for full payment the moment you cancel that card.

   Better solution. Only use the card every other month for a small charge to keep the account active if you have a Zero balance. It won’t hurt you and you don’t incure any interest charge when you pay off in full every month.

   If you have a balance… stop using the card and start making at least twice the min. payment until you get the balances back down to Zero.

   Reena | Sep 27, 2009 | Reply

4. Why cancel it? What purpose does that serve?

   bud68 | Sep 29, 2009 | Reply

5. You should never cancel a card you have had for a lengthy period of time especially with good history. Your longest standing line of credit gives your fica the biggest boost and it is what lenders look at first when deterning if you are worthy of recieving a loan. It will lower your fica if you do. If you are concerned that you will max it out then ask them to lower your limit or cut it up so you don’t use it but still keep the account open and make your monthly payment. When you are comfortable with having a credit card again have your bank reissue it. Always keep your balance owed at 30 percent or less than your limit.

   T F | Oct 1, 2009 | Reply

6. Do not close the card cause it lower you available credit line. You also can use this service to pre-estimate future scores for different scenarios of credit card payments. – creditreport.imess.net

   Peter C | Oct 3, 2009 | Reply

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