Should I cancel this credit card?

kittycat0604 · #1 (**permalink**) 09-07-2006, 10:02 PM

I had a Fleet Boston reward credit card, it was my first credit card, I had it for 7 years. Now Fleet Boston became part of Bank of America, yesterday, I received a letter from Bank of America that they will replace my card with a Bank of America reward card. I already of a BOA credit card, with a better reward than the one they just offered to me. Even they said I could use both of them, I do not think it is a good idea.

I would like to cancel this "new" reward card that they are going to send to me, but I do not know if it will affect my credit score, since I had the original Fleet Boston card for long time. When the banks merges, will my old credit card "history" merges with the new card from the new bank?

I am so confused.

Please help!

autoxer · #2 (**permalink**) 09-08-2006, 05:22 AM

I wouldn't cancel it. The 'new' reward card still has 7 years of history reporting. My oldest tradeline has merged and changed names a few times, but still reports as opened in 1999. You can certainly cut it up & stop using it, but canceling it can only hurt your FICO score.

autoxer · #3 (**permalink**) 09-08-2006, 05:26 AM

Another thought: You can ask them to change the rewards program. I asked Discover to change my card to a gas card, but it's still the same account.

neatdesign · #4 (**permalink**) 09-09-2006, 10:08 PM

I wouldn't close it. Your account's history will stay intact. By closing it you're simply saying goodbye to 7 years of credit history you've built up with that card.

The only thing I would suggest is to make sure you're not being charged an annual fee. If you are, or will be after the merger, call them and ask to have it removed. That way, even if you choose not to continue charging to it, at least you don't have to pay any fees on it.

~ Jenney

Dr. Sach · #5 (**permalink**) 09-10-2006, 07:19 AM

Use the card that gives you more rewards. The only disadvantage you will be in with keeping two cards and not using one will be if in the near future you are looking to apply for more credit. Lenders will see in your credit history the credit you have across the two cards. Lenders will lend you less as you already have credit elsewhere and there will only be so much credit that they can give you on your personal circumstances.

If you need to use the maximum limits across both cards then you will have to keep both. Ask your credit card company if they will merge the limits in this case and close one of the accounts if possible.