Closing a Chase/SWA rewards credit card

[leebee]

I am about to close one of my Chase cards, but a friend suggested I keep it open until the next annual fee is posted. She said I'd get my 6000 rapid rewards bonus when the bill was posted, but I could then request to waive the annual fee (for next year) and close the account- and I'd still get the 6000 rewards points. She claims the 6000 rewards are a "thank-you" for having used the card for a year, not for keeping it for another year. Does anyone know if this is true? Have you done this?

 

[rnorwo1]

I'm interested in hearing the responses, but I always assumed that it's tied to just paying the fee.

 

[AquamarineSteph]

I haven't heard one way or the other, but I have read that closing a credit card account 'may' adversely impact your credit score.

 

[Ranger111]

I haven't heard one way or the other, but I have read that closing a credit card account 'may' adversely impact your credit score.

If you close it, just make sure that you check your credit reports later and that it says "closed by consumer." If not, make them put it on there. Generally that will not affect your ratings. Read the link below for more details.

A free, legitimate way to check your credit report on a regular basis is to sign-up for creditkarma. CreditKarma will give you free reports from two of the three major players. You can also get your "one free report a year through the federal government, or however it works now, but that is only one report every 12 months (there are reasons you can get more, but I don't feel like getting into it.).

http://finance.zacks.com/account-closed-consumer-negative-credit-report-1657.html

https://en.wikipedia.org/wiki/Credit_Karma

 

[Fat01]

Closing the card will most likely hurt your credit score. Most advisors would recommend you do not close it. Suggest you contact Chase and ask them for another alternative. Chase may be able to lets call it roll back that card to a non annual fee type. Also, in regard to getting credit reporting agencies to report "closed by consumer." The idea is nice but does not always happen. Again, explore keeping the card, talk to Chase.

 

[MrPTato]

Closing a credit card will only hurt your score if it effects the overall utilization across your profile. A closed account will still age for 10 years. Never close a card that still has a balance on it. Wait until it gets to $0.

 

[Fat01]

Closing a credit card will only hurt your score if it effects the overall utilization across your profile. A closed account will still age for 10 years. Never close a card that still has a balance on it. Wait until it gets to $0.

Agree to a point but it can be a crap shoot of sorts... Op would be wise to speak with Chase as I mentioned in my earlier post.

 

[elgerber]

I am about to close one of my Chase cards, but a friend suggested I keep it open until the next annual fee is posted. She said I'd get my 6000 rapid rewards bonus when the bill was posted, but I could then request to waive the annual fee (for next year) and close the account- and I'd still get the 6000 rewards points. She claims the 6000 rewards are a "thank-you" for having used the card for a year, not for keeping it for another year. Does anyone know if this is true? Have you done this?

This is not true. I forgot to close one of mine before the fee hit, so I closed it as soon as it did. They refunded the fee, but they also took back the 6000 points. I was fine with this, as I had meant to close it before I got them anyway.

 

[LSchrow]

since you pay the annual fee & receive RR points upon opening the card, the points are not a "thank you" for the previous year, but rather an incentive to keep the card (& continuing the annual fee/points cycle).
Simply, if the annual fee is not paid (or waived), the points associated with that fee will no longer be available to the consumer.

 

[brittanidp]

I know nothing about waiving the fee but I have the card and got the 6000 points at my anniversary

 

[Ranger111]

Closing a credit card will only hurt your score if it effects the overall utilization across your profile. A closed account will still age for 10 years. Never close a card that still has a balance on it. Wait until it gets to $0.

At least some people understand how it all works......

 

[Ranger111]

Also, in regard to getting credit reporting agencies to report "closed by consumer." The idea is nice but does not always happen. Again, explore keeping the card, talk to Chase.

It does not always happen, which is why I said to double-check that it DID happen. If it DID NOT, then you MAKE IT HAPPEN. Takes a minor effort, but not that much of a pain. Better than hanging onto a credit card that is not being used and has no discernible purpose in your portfolio.

 

[Friendlyadvice2]

I am about to close one of my Chase cards, but a friend suggested I keep it open until the next annual fee is posted. She said I'd get my 6000 rapid rewards bonus when the bill was posted, but I could then request to waive the annual fee (for next year) and close the account- and I'd still get the 6000 rewards points. She claims the 6000 rewards are a "thank-you" for having used the card for a year, not for keeping it for another year. Does anyone know if this is true? Have you done this?

Your friend is mostly right and you should follow his/her advice assuming it is not detrimental to your credit situation (which only you will know). I can't however agree with all of the advice provided in the replies to this thread. The 6,000 bonus points are part of the card agreement/program and are awarded every 12 month period (from enrollment) that you have the card open. They are NOT, I repeat, NOT tied in any way to paying the annual fee nor are they "thank you" points for anything. They are simply awarded at your 12 month anniversary date as part of the card agreement and you are entitled to them no matter what you do with the card after receiving them. The Plus card offers 3,000 points in the same fashion. For anyone who responded that their points were clawed back after closing the card, then they were reversed in error and I'd simply cite the card agreement. You can go online and pull it up as I type this.

Pursuant to the card agreement, once the points are received on your anniversary and applied to your RR account, they are yours. I've personally closed in my quick estimation 6-10 of these cards over the years (I churn 2 cards every 2 years for spouse and I) and provide advice to many others in possession of these cards and each was closed after receiving the anniversary points on year 2 and a full refund of any annual fee was subsequently made or just not paid depending on the timing. I just recently closed my latest Premier card a few months back and the process was the same, with the rep on the phone even stating that the anniversary points are yours to keep (thanks, I already knew that though).

I always hesitate to provide specific credit advice because everyone's situation is different and I don't have all the facts, but regarding your credit score, in general, if you have other cards and if you've only had this card open for a few years and if your current balance is $0, then the impact on the "history" portion of your score will be minimal. Depending on your credit limit, there can be some impact on the "utilization" portion of your score since you are now removing that limit from your denominator. However, if you are replacing the card with another and if the limits are similar, you'll notice very little affect on your score. Although I have a core position of credit available, I carefully close/open 2-3 cards per year with no negative impact on my score and actually have created a positive impact on my score by using this method (I've been 800+ for many years).