Which credit cards should I close?

[ryanrnnr]

I'm very close to finally paying off all of my credit card debt. Over the years, I've accumulated a total of 7 credit cards. Now that all but one of them have a $0 balance, my feeling is that some of them need to go--primarily because credit card companies are beginning to access an annual fee, which seems silly to pay if the card is not being used. Any advice on which ones should go? Thanks! Ryan

1. 1st Financial Bank USA, opened 9/2001, credit limit $17,000
2. Bank of America, opened 10/2003, credit limit $6,000
3. Capital One, opened 7/2001, credit limit $1,500
4. Citi, opened 5/2011, credit limit $4,800
5. Citizen's Bank, opened 2010, credit limit $4,300
6. Gap, opened 11/2010, credit limit $2,000
7. Wells Fargo, opened 11/2007, credit limit $10,000

[JoshuaHeckathorn]

Which ones are assessing an annual fee?

If a card has no annual fee, I would leave it open. If it does have an annual fee and you won't be using the card, then it probably makes sense to just close it. Expect both your credit utilization ratio and length of credit history to take a bit of a hit when closing cards.

If you can find a way to leave some of your oldest credit cards with the largest limit open, like the 1st Financial Bank card, that would be ideal.

[ryanrnnr]

Thanks. At the moment, none of the cards are assessing a fee, but 1st Financial Bank recently notified me that it will assess a fee for next year. I really don't want that fee, but I know that if I close that card, it would hurt my credit score. Also, I'm worried that one of the cards will just slap with a fee if I don't keep on top of them. Once I pay of my last card, I'd like to not have to think about them anymore. It's a pain.

[snafu]

Most CC grantors have a fee and no fee card. If you wish to retain a First Financial CC, ask if they have a no fee card, it's credit limit, interest rate, and billing cycle. Do you see your credit score affecting your day-to-day activities? Any reduction in FICO score is only significant if you're planning to buy something major like a house or car.

[JoshuaHeckathorn]

Originally Posted by ryanrnnr

Thanks. At the moment, none of the cards are assessing a fee, but 1st Financial Bank recently notified me that it will assess a fee for next year. I really don't want that fee, but I know that if I close that card, it would hurt my credit score. Also, I'm worried that one of the cards will just slap with a fee if I don't keep on top of them. Once I pay of my last card, I'd like to not have to think about them anymore. It's a pain.

If you know you're not going to be relying on your credit scores in the near future, I wouldn't worry too much about the hit you'll take when you close a couple of cards. Like I said, it's generally not worth paying an annual fee if you won't be using the card often, so go ahead an do it. If you have a reason to keep your scores in tip top shape, then the situation is different.

Also, if a card does add an annual fee in the future, you should receive ample notice before the fee is charged. You could always try to switch to their no annual fee version of the card or apply for a new card with no annual fee before closing the old account. Although it's tempting, you don't want to just close all your credit cards now that you've paid off your balances. Retain as much available credit and history that you can, pay your balances in full each month, and your FICO scores should only get better.

[greenskeeper]

I would close all but one, which has no fees and gives you the most back for using the card. Then pay in full each month.

[naomibatac]

I agree with @greenskeepe, this is a good credit card advice. It is difficult too many credit cards. Sometimes card are source of your stress.

[graceful]

Originally Posted by ryanrnnr

I'm very close to finally paying off all of my credit card debt. Over the years, I've accumulated a total of 7 credit cards. Now that all but one of them have a $0 balance, my feeling is that some of them need to go--primarily because credit card companies are beginning to access an annual fee, which seems silly to pay if the card is not being used. Any advice on which ones should go? Thanks! Ryan

1. 1st Financial Bank USA, opened 9/2001, credit limit $17,000
2. Bank of America, opened 10/2003, credit limit $6,000
3. Capital One, opened 7/2001, credit limit $1,500
4. Citi, opened 5/2011, credit limit $4,800
5. Citizen's Bank, opened 2010, credit limit $4,300
6. Gap, opened 11/2010, credit limit $2,000
7. Wells Fargo, opened 11/2007, credit limit $10,000

If 1st Financial is assessing a fee, and I wasn't looking at maintaining a higher credit score (i.e. it was high enough already or just finished re-financing, etc.) or I didn't need a high credit limit, I would close that card. First I would ask the bank, as someone suggested, if they had a no fee option.

If you are looking to cut down the number of cards you have, I would:
1) Try to keep 1st Financial and one other card open (pick the best rate/terms/creditline)and close the rest.
2) If 1st Fin is going to charge a fee, close it, Gap, Citizen and Citi and keep WF, BofA and maybe Cap One for the for the higher limits and the longer credit history.

Good luck. I usually leave ALL my cards open unless they start charging a fee. I just don't use them.

[orenwach]

I like having different cards for different types of purchases. Some cards have great rewards but only for specific categories. I would get rid of any card that has an annual fee or will be having one soon. I wouldn't get rid of non annual fee cards. Put in your drawer where you won't use it. You never know, it could be that your other cards will not be as good later and you don't want to have to go through the hassle of getting a new card. You also won't take the credit score hit if you don't close the account.