Keep or cancel oldest credit card?

[mjkacmom]

I've had a credit card for over 20 years (citibank), and it's an airmiles card. They recently changed their points policy, and it's not worth anything. They also increased our rate to 19.9%, and it's time for the $25 annual fee. We also have other cards, only one which we use (almost as old), and have good credit scores. We're not planning on moving anytime soon, but DH's car is 10 years old, mine almost 8.

 

[a1tinkfans]

well removing a card "dings" down your credit score....but the REAL factor is your outstanding debt versus potential credit available....
If you have very good credit...760 above, maybe you should be fine....But I think I would call the and see about reducing the % (you will likely NOt get the $ waived)...if they say no, and you no longer even want the "perks" they offer, I guess I'd not pay the card and ask them to close the account and send you a confirmation letter that it was "customer request"
Good Luck....and hold on to those vehicles as long as you can

 

[MomToOne]

Call Citibank and see if they will allow you to "convert" the card to a different card of their's with no annual fee, where your credit history on the card remains in tack.

I've had hit and miss luck converting cards lately, but it's worth a shot.

If they won't allow a conversion, I'd say close it, if you have other credit cards where you have a decent history and where you are not carrying a large balance (you don't want your debt-credit ratio to suddenly look bad). But that's just me - I hate annual fees!

 

[PrincessSuzanne]

I think in your case, I would just close that one, especially since it has an annual fee. It won't hurt you too much, especially if you don't have a large limit.

I closed a bunch over 10 years ago and if it hurt me I didn't notice it too much as I have had no problem getting credit when needed.

Suzanne

 

[eliza61]

I gotta tell you, it pretty much steams me that the fico number is so ridiculously confusing.
back on topic, generally I've been closing all accounts that I haven't used in 5 years.
Only had a very temproray ding on my score.

 

[bettymae1121]

If your next oldest card is almost as old, then go ahead and close it. You shouldn't see a huge ding in your score, unless it causes your debt ratio to climb.

 

[mjkacmom]

Thanks - I think we'll let it go. We tried negotiating several times, asking for a different card, etc. It did have a pretty high limit, though. And for a PP - we drive our vehicles into the ground, and since my 2003 Odyssey only has 55,000 on it, I think I'm good to go! DH has never owned a new car in his life, and has no desire to.