Closing a CC Account

Discussion in 'Budget Board' started by OneThree, Sep 12, 2018.

  1. OneThree

    OneThree Mouseketeer

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    I recently got an email from Chase saying that they were going to close my Slate account due to inactivity if I did not begin using it again. I got the card for the balance transfer offer and it served its purpose and now I just don't have a need for it.

    Should I just let them close it? I am not worried about the utilization ratio because I have virtually no balances on other cards. I think I would take a ding on the average age of accounts but not sure how much of one.

    Anyone run in to this issue before?
     
    Last edited: Sep 12, 2018
  2. bubba

    bubba Mouseketeer

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    I'd be interested in the response to this as well. I have a couple cards I have had forever and I never use.
     
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  4. MrPTato

    MrPTato DIS Veteran

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    Do you have any other Chase accounts? You can move that limit over to your other Chase card. You AAoA won't be touched as the card, even when closed, will report for upwards of 10 years.
     
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  5. tvguy

    tvguy Question anything the facts don't support.

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    I don't know.
    People have posted that canceling a credit card will lower your credit score.
    I closed one of my 2 credit cards. My credit score didn't change one point.
    I bought a new car and took out a loan in June. I just got my updated credit report with the loan on it, but again, my credit score is exactly the same.
    The most credit I have had every at the same time in the last 40 years was 2 credit cards, a mortgage and an auto loan, so I may not be typical or at the very least a good example.
    Then there is my daughter who only has one credit card, and was looking to buy a house. Mortgage lenders had issue with her just having one credit card, even though she has a 9 year flawless credit history.
    So she bought a car and got a loan, and THAT was a challenge, didn't get the best auto loan rate despite having twice as much cash on hand as the car cost.
    Credit is a mystery to me.
     
  6. MrPTato

    MrPTato DIS Veteran

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    Lenders are more apt to give you credit when they see how you have utilized credit in the past. Typically for better scoring, you want 3 credit cards and a loan reporting.
     
  7. OneThree

    OneThree Mouseketeer

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    I have the Chase Disney Signature. That would be great if we can move the limit to that one as we do use the Disney.
     
  8. tvguy

    tvguy Question anything the facts don't support.

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    I've been an automatic accept at the lowest rate for every loan I've ever gotten, so it seems to be working.
     
  9. MrPTato

    MrPTato DIS Veteran

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    You also have 40 years vs your daughter at only 9. It does take time.
     
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  10. MrPTato

    MrPTato DIS Veteran

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    Send them a secure message and have them move the limit over. They may move everything or just move all but $500. If you haven't used it in (hence the notice) then they should be able to move it all over.
     
  11. Jimsig

    Jimsig DIS Veteran

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    Will they even let you keep it open? I had a Chase card and I got a letter like you and it stated that the account would close due to inactivity and there was nothing I could do to keep it open.

    When it did close I took either a 4pt hit on or no hit on my FICO score. I have 2 cards that allow me to see my FICO and one card showed a 4pt hit for a few months and the other showed no change at all.
     
  12. GPC0321

    GPC0321 DIS Veteran

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    Let them close it, but as another poster suggests, see if they'll transfer the credit line for that card to another Chase card (if you have one) first. I've closed four Chase cards (and still have four), always getting the credit lines transferred to other cards first. Never a problem.
     
  13. seasheller

    seasheller seasheller

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    I can't see that closing a seldom used card has ever lowered our credit score. I have done it several times. I don't usually carry a credit balance on any card so maybe that makes a difference - they are probably glad to get rid of me!!
     
  14. Eastern

    Eastern DIS Veteran

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    Close the card but have them transfer that credit limit to another card or spread it out among your remaining Chase cards.
     
  15. DizMe

    DizMe Here we gooooo...

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    I'm not really understanding why you would want them to transfer the credit limit?
     
  16. WIll C

    WIll C Earning My Ears

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    If there is no annual fee then don't close it. Cards stay on your account for 7 years so it's pointless to close it. Closing it lowers your average time of length for credit and also lowers your total credit limit if you don't transfer it off.
    Call them and product change it to a Freedom or Freedom Unlimited if you can so you can earn cash back. While it may not lower your credit score much, depending on what else you have, it might affect it. Not as much as a high balance or delinquent accounts though.
     

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