How much would it hurt our credit to close my husband's oldest credit card?

[fifthdimensiondweller]

Hi everyone!

My husband and I are reworking our credit and are looking into using only cards that offer beneficial perks for us, like cash back, travel rewards, etc. My husband has an older card from when he was in college. He never uses it, and it only has a very small limit, I think around 500. He doesn't really get any significant rewards or perks for having the card, so we would like to close it and open something with airline rewards in his name (I don't like leaving as open card around we aren't using), but since it's his oldest line of credit, I'm worried it will negatively impact his credit. He got the card in around 2012 or 2013, and he only has one other card in his name, that he opened last year. He also has an auto loan and school loans in his name. I've heard that your age of credit is very important, so I don't want to tank his credit by closing the card, but if we can get rid of it I'd like to. Should we do it?

Thanks!

 

[Jen and Ashwin]

Hi everyone!

My husband and I are reworking our credit and are looking into using only cards that offer beneficial perks for us, like cash back, travel rewards, etc. My husband has an older card from when he was in college. He never uses it, and it only has a very small limit, I think around 500. He doesn't really get any significant rewards or perks for having the card, so we would like to close it and open something with airline rewards in his name (I don't like leaving as open card around we aren't using), but since it's his oldest line of credit, I'm worried it will negatively impact his credit. He got the card in around 2012 or 2013, and he only has one other card in his name, that he opened last year. He also has an auto loan and school loans in his name. I've heard that your age of credit is very important, so I don't want to tank his credit by closing the card, but if we can get rid of it I'd like to. Should we do it?

Thanks!

I would generally say, just leave the card open, but since the card was opened just 3-4 years ago, in the long run it probably won't affect your credit too much and for too long since it is based on an average age of credit. But in the short term, that average age will dip down significantly, so if you are planning any big loans in the next few years, like home or auto, you might just want to keep this card open.

I have a card that I opened when I was 19 and I don't use it anymore (just one transaction each month to keep it active) because the perks on it are pretty terrible. But I won't close it because it is my oldest card (13 years) and if I cancelled it, my age of credit would drop a ton.

 

[fifthdimensiondweller]

That makes sense! Thanks!

 

[AmyAnne]

The other thing to consider is that closing the account could increase your utilization percent, which could adversely affect your credit score.

 

[fifthdimensiondweller]

that average age will dip down significantly, so if you are planning any big loans in the next few years, like home or auto, you might just want to keep this card open.

On that note- does my husband's auto loan help out his age of credit at all? he got the auto loan in 2014.

 

[fifthdimensiondweller]

The other thing to consider is that closing the account could increase your utilization percent, which could adversely affect your credit score.

Good point. If we plan on opening a new card in his name (that will probably have a higher limit) how long do you think it will take to reflect on our credit score?

 

[Mickeypooh99]

We had my husbands oldest credit card closed on us due to inactivity. No warning at all. The bank just sent us a letter and said it was going to be closed in 30 days. He had had it probably 20 years. It was also our highest limit. We never used it because it wasn't a rewards card. He even called and asked for them not to close it, but they said there was nothing we could do. It never made any noticeable difference in our credit score.

 

[MomToOne]

I open and close cards all the time for the reward bonuses - I think the average age of my accounts is only about 3 years. But I have a low utilization percentage, and lots of open accounts, and so my score is very, very strong.

If all you have ever had is this one card, you might take a bigger hit if you close it, even if you replace it with another one with the same credit limit. But if it is one of many cards, and you have a good score to start with, your score shouldn't take as big a hit.

 

[AquaDame]

If he only has one other card I'd have him get another one in his name first and take the hit.. a couple of years is nothing in the credit world. My accounts are older and I'm still getting dinged for their age even now so I doubt his is helping. That said, who cares if its a card you aren't using..? Put it in a safe or cut it up and just don't use it. Half of my cards haven't been touched in a couple years... I wonder when/if the bank will close them...

 

[tvguy]

I closed one of my 2 credit cards, one I had 8 years and had seldom used. My credit score didn't budge.

 

[dreamin_disney]

We had my husbands oldest credit card closed on us due to inactivity. No warning at all. The bank just sent us a letter and said it was going to be closed in 30 days. He had had it probably 20 years. It was also our highest limit. We never used it because it wasn't a rewards card. He even called and asked for them not to close it, but they said there was nothing we could do. It never made any noticeable difference in our credit score.

Good to know . Same thing happened to me. I got a letter in the mail saying they closed my account due to inactivity :/ I only use my cash rewards credit cards. I have 3-4 cards that I need to start using atleast once a month so those don't get closed too

 

[Blackadder337]

I'm not sure if it works differently in different countries, but in Canada, I recently just cancelled all my oldest cards because they don't offer any perks or rewards that benefit me. So I now have two different credit cards (both less than 2 years old) and my credit rating didn't change much at all... maybe a few points but when I asked, I was assured that "a few points" doesn't change your rating much. Unless you've previously had bad credit, then every point can make a difference.