Should I close my oldest credit card account?

Discussion in 'General Discussion | Credit Cards' started by chichiliano, Mar 13, 2013.  |  Print Topic

  1. chichiliano

    chichiliano Active Member

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    My oldest CC (a Wells Fargo Visa, nothing special) is one that I rarely use (have had it since 2006), but have been told by others to keep because it looks good on credit report.

    That said, I recently did a churn and now have about 7 credit accounts. My second oldest account is three years old.

    Should I keep this account, or am I doing harm by closing it?
     
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  2. misterbwong

    misterbwong Silver Member

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    I'd vote to keep it open because:

    a. It's Wells Fargo, so it's not like you're going to be after a lot of credit from them. They don't really play the miles/points game
    b. It's your oldest card, increasing avg age of accounts and helping your credit
    c. I'm assuming it's a no annual fee card so it's not costing you anything except maybe the occasional use to keep it open.

    Doesn't sound like it's doing any harm keeping it open but it will harm your credit (slightly) if you close it.
     
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  3. oneeyejack

    oneeyejack Gold Member

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    Just keep it open and put it away. It won't hurt you to keep it open.
     
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  4. infamousdx

    infamousdx Silver Member

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    With your oldest account only being 7 years old, I don't think it'll hurt as much as others say.

    First of all, the account won't even fall off your credit report until 7 years after the closing date.

    Second, let's do some rough number crunching with the facts - 7 cards, oldest is 7yo, next oldest is 3yo.

    When this WF card falls off your account in 7 years (if you closed it today), you'd be going from about 9.1 years average age to 8.3 years. Not an entirely big deal.

    **I'm really just thinking out loud regarding everyone's big hangup on average age of accounts.
     
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  5. edekba

    edekba Gold Member

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    and use it once/twice a year :)
     
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  6. infamousdx

    infamousdx Silver Member

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    Oh I forgot to add my opinion. Even through my little math problem finding, still just keep it open if it has zero annual fee! :D
     
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  7. paladin87
    Original Member

    paladin87 Silver Member

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    My oldest card just sits in a drawer. I never use it and have had it for 10+ years. No reason to close cards pretty much ever unless you have a fee.
     
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  8. wrxmom

    wrxmom Gold Member

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    You didn't mention how high the line of credit is on your WF card. You'll want to take that into account as well because if you close the card it reduces your total available credit and could change your debt to credit ratio.
     
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  9. Sweet Willie
    Original Member

    Sweet Willie Gold Member

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    Positive credit info will generally remain on credit report for well after 7 years, whether closed account or not. Most negative (but not all) gets dropped after 7 years.
    prob best reason to keep it open if OP is younger!
     
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  10. Mrlasssen

    Mrlasssen Silver Member

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    This to me is a no brainier, keep it if it's free. How many of you out there would think of canceling their JC Penny's, Macy's or Home Dopot card just because it was old? Use them ony to keep them open.
     
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  11. servo

    servo Silver Member

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    I learned this lesson the hard way. I wish I knew then what I know now, because I closed all kinds of NAF cards when I was younger, and while I have 17 active ones now, my oldest card isn't all that old. That's what is keeping my score from being in the high 700's or low 800's, I think.
     
  12. chichiliano

    chichiliano Active Member

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    Thanks all for the responses! The card limit is $7,500. I will keep it open, and use it occasionally.
     
  13. tim0thy

    tim0thy Active Member

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    I just want to echo the comments here: keep it open!

    Someone mentioned that it takes 7 years to fall of your credit report and while that is true, FICO only factors OPEN ACCOUNTS into the average length of credit cards. That said, if you close your card it will probably adversely affect your credit score by lowering your average account age (for open cards).
     

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