Closing first credit card

[chisnpeke]

I have a credit card I got when I was 18. It was the first one I ever had. It is not increasing its annual fee and I don't really want to pay it as I rarely use it. It's a student type credit card for 1st Financial Bank or something similar and offers no benefits. The reason I don't want to close it though is I have heard though that closing the first credit card you got hurts your credit.

I have a good credit score and got a second credit card that I do actually use because of its rewards. I got the second credit card maybe six months after the first one.

I have had this card for about four years. Would it hurt my credit to close it?

 

[jgreco]

I have never heard of that as long as you are the one that closes it voluntarily.

As long as you have some sort of revolving credit that you are paying in full or on time, you will be good. If I recall, the more cards you have, the more it impacts your credit negatively.

 

[britfish]

I have heard the same thing about closing out credit card accounts. I had a similiar situation but mine was a Chase card I had for about 18 years. I called them and they switched it to a now fee card. Same c.c. number (which is nice because I have it memorized) but no fee. Have you called them? maybe they have another card to swtich it to.

 

[prncess674]

If I understand you got first card approximately January 2007 and then you got your second credit card in July 2007. The difference is neglible and it will only drop your score a few points (+/- 10) and this will drop off in less than a year and your score should go back to its original. I am assuming Card 1 was a low limit student card. To counter act you can call Card 2 and ask for a credit limit increase so your total available credit doesn't change.

I wouldn't really worry about it and a +/-10 is not worth a yearly $50 or $75 annual fee. The only situation that would make me hesitate to not close is it if you were looking to close on a home loan in the next six month.

 

[Mom2Ben02]

Closing a card will hurt your score - especially if you carry a balance on the other card. If you have, say, a $5,000 limit on both cards, and one has a balance of $2500 - if both cards are open, you have a debt ratio of 25%. If you close one, you owe $2500 and have an available credit amount now of $5000 - so now your ratio is 50%.

It is going to be tougher and tougher to get no-fee cards.