Same here ! Just recently when I applied for a mortgage, the bank said most of my credit card and LOC accounts will be paid and closed first and I freaked out like hell 😂. I didn’t know it’s a good thing ❤
That was a great explanation of what closing a credit card actually does to your credit. I have always been so scared to close my cards, but this video made it sound a lot less scary than most people make it out to be. Thanks John!
@@MoneyMelJr It definitely depends on the case, but I don’t plan on closing any cards with no annual fee. And if I can downgrade to a no annual fee version, even better!
@@MoneyMelJrThis advice would leave me paying the $50/yr fee forever, on a no-longer-used card from my college days, just to avoid negative credit effects.
@@johnsfinancetips Closing an account will decrease your credit score. I paid off my Toyota car loan and my score dropped 30 points. Had nothing to do with credit card utilization.
I like this because I’m definitely going to be paying off and closing some of my newer cards but I’ve always been scared to do so until now. Thank you!! ❤
thank you for making such great videos!! i love that you don't talk too fast and you type out when youre talking numbers and equations. Thanks!! best finance videos ever!
Great video, I learned something new! I'm of the opinion of keeping your credit cards open to keep the credit utilization low. Other than risks of fraud, I had no idea about being rejected for having too much credit.
Be warned that this does not always happen at all three bureaus. I have a closed American Express account. It used to report to all the bureaus, but sometime after I closed it, I didn’t notice how long it took, it stopped reporting to most of them. Now it only reports to Experian. So I lost that age on the other major bureaus. And of course since it’s a closed account there’s nothing I can do about that.
Thank you for the heads up! That is something I think you should ask AMEX about since they shouldn't have scrubbed that history - it should be marked "closed" on your report.
I agree be warned . I was piggybacked/authorized user on my parents USAA visa CC since I was 21. Never used it but they did it to help my score. Fast forward 30 yrs and they wanted to close that card and did so a year ago. Transunion still shows it but equifax doesn’t, which dropped my age down about 15 yrs. I went from excellent to bad for “age”. Oddly my TransUnion Score is only a point different than Equifax….which is usually the case…they are always about the same. I dont worry too much about utilization outside of my ability to pay my balance in full. Which of course I always do ;). If I’m going to need a loan or whatever I just pay twice a month or someone could just not use their card for the month or two.
My mom put me down as an authorized user on a department store card she had for decades. A few years later the store went out of business. The card is still on my credit score at least in age so it shows my age of credit is older than I am.
You forgot the most important strategy… let’s say you have more than one chase card… you can call to “merge” the cards from one to the other which will combine the credit limits and effectively close the old card out…. This shows as more positive on the credit report overall and maintains your credit limit. Also your comment on chase max credit line is true but they will let you continue to open more cards… they will just decrease limits on other cards to make up for the new card limit so you retain the same overall credit limit.
But if you merge them, you still lose out on the average age of your cards in the long run. It's usually better to convert the cards, if the new product doesn't come with a large sign up bonus.
I just learned a lot of new information from this video and I just wanted to say thank you for that amazing explanation and thank you for further augmenting my knowledge with credit. Amazing video ❤
AMEX in Canada lets you transfer your credit limit from one credit card (not charge card) to another. Once this is done, you can cancel the card with the low limit.
@@diegosegura7617 There are two types of "transfer": 1.) Balance Transfers: maybe you want to consolidate multiple cards with high interest rates to a new card with a 12 - 18 months Introductory APR of 0%. That type of transfer MUST BE DONE by having a totaling different credit card issuer. 2.) Re-allocation of Credit Limits: you have a Chase Trifecta (3 cards), but one of the cards is used sparingly, and another is used frequently & utilization is high (nearing 30%). You can take half of credit limit from spare card and transfer it to high use card, which will reduce your utilization rate on high use card. Obviously, this is the same card issuer. Hope this helps.
Ok. I'm pretty knowledgeable on credit cards and such, but the one thing I didn't know was that a closed account stays on your credit report for 10 years from closure. I always wondered and now have my answer. Great content! 💪😀🔥
I recently closed my Apple Card three weeks ago MyFICO score dropped only 1pts for closing it. I closed two cards last month . If a card doesn’t bring you any value, just closed them and avoid any chance of fraudulent charges etc
@Vanessa Campbell (Credit Counseling Consultant) Thanks for the comment Vanessa as someone who has accumulated over 4M credit card points and miles I also have a really good idea on how to make them work for me. As always my videos are free so please feel free to continue watching!
I got my first credit card 8 years ago and I just got my second credit card this year. If I cancelled the old card, that would mean that it would subtract 8 years from my length of credit card history, even 10 years later, correct? Is it worth keeping my oldest credit card in this case, especially if I want to have a lot of cards in the future?
I just opened another 0 interest card. I have no balance on it and the limit is $22K. I didn't read the fine print for a balance transfer. They want to charge me 5% but the customer service rep said the going rate is 3%. I have exceptional credit; why am I not getting that rate. I wanna close it. Thanks!
As a former banker, I actually laugh at people who are easily got fooled by believing this video. Go google and confirm yourself before messing your score up.
1) When you close a credit card that is in good standing it does not sit on your Credit Report reporting as positive towards your Credit Score. 2) When you close the Credit Card it is on your report, but it is not reporting actively towards your Credit Score. 3) Once your Credit Card is close 45 days from closing it will affect your score just as much as it positively impacted it. 4) I like you John, but I have to create a video addressing this brother.
The only reason I wanna cancel my credit card is the high annual fee. Already tried to inquire about downgrading or product switch but Barclay said no. 😢
Here's what I learned today credit card companies can cancel credit cards if you're a seasonal user under the caption inactivity the law was changed in 2008 if the credit card company consider your card not active enough they can can cancel you with the excuse inactivity and it perfectly legal, one more thing it does effect your overall credit score if you cancel or if they cancel you research it does effect your credit rating
So basically when you close a card, after 10 years before just couple month before, apply for another credit card. Yes history is affected but utlizarion will be somewhat maintaiend cause less of an issue.
Okay, but if you close a card, I assume that its credit history does not keep growing, right? So let’s say you close a card that’s two years old, it stays “two years old” for the next 10 years? This seems like it would bring down your average credit age if you have mostly accounts that are older than 2 years.
This just isn't true... The "Age" calculation primarily focuses on OPEN accounts thus it's absolutely true you SHOULD NOT close older cards until you've had the newer ones for at least 10 years. It's the same with getting new cards... I had 3 cards each for over 3 years, and my just showing ONE of several of the cards I got caused me to lose around ONE YEAR of my credit Age. Then when the others cards show up on my credit report my credit age is going to be down to ZERO which is going to hurt my score alot. Of course, in time those cards and otherwise will benefit my score more, but that hit IS still there, and it's going to take some time to get out of it.
Example I needed tools for work I looked for a card to help US Bank gave me 200 for spending 1000 my tools cost me 1300 plus 1% cash back it’s like I only paid $1087 and 18 months no interest. Allows me to carry cash if I ever had a emergency I can always pay minimum only in emergencies but I always pay off
i have a sapphire card with over 17k limit I opened in may i want to cancel it because I don't like their no annual fee options and i don't need it i put all my expenses on my amex card i will maybe go for the apple card for the security and no forgin transaction fee but what are your thoughts ?. I don't like having a lot of cards because i don't need them
People worry so much about credit score I use credit cards to my advantage never carry balance on interest cards but don’t mind caring a balance on 0% cards
This was great. But my questions is all of my cards are in good standing paid off. But I have 2 that I don’t use but there’s a monthly fee! So I’m considering closing it
Question. I have a cash rewards cards Bank of America. I’ve had it for 6 years. I have a $2,456 balance and a $7,000 limit on it (I’ve had the balance for a long time but i always paid the minimum payments on time) I now have the money to pay it off. I want to get rid of the card because it’s not giving good rewards and it’s it got a $60 annual fee. I’d like to apply for a better one but don’t want it tanking my average score. What’s the best way to go about doing that?
After this video, I still believe that you should never close your first credit card. 10 years down the line, it's going to really hurt your credit score when a couple years suddenly go missing from your credit age for a choice you made 10 years prior
it was a great explanation. just a question though, you mentioned that "when you close a credit card in good condition it will stay for 10 years". this is good but what happens after the 10 years? usually, mortgage takes more than 10 years as an example. this means that my renewal will be impacted because I am losing that 10 years of good credit history?
Charge cards like the Amex Gold/Plat don't affect utilization, so you can't improve your utilization score with them, but this can also be good, because they don't tank your score if you for example have high business expenses in a month.
Hi John- late comment here but quick question! You said that closing a credit card doesn't impact your length of history because it stays on your credit report for 10 years. But let's say someone has a 15 year old card that they close. Sure, it doesn't affect their length of history when they close it right then...or for the next ten years...but once ten years has passed won't it then register and cut their credit history by those 15 years? Sure it'll take 10 years to feel the ding but depending on your age wouldn't that be significant?
Hi John! It was just announced that my Ebates Cashback card is being discontinued in September of this year. I will have my balance paid off before then, but I wasn’t sure if you recommended calling to close the account before this date or if when a card is completely discontinued it is better to let it close in good standing on its own? I can’t find any info on this online so if you have a tip, I will take it!
There’s a portion of this video that can be seen as misleading. Closing a card u had for a long time will definitely have a significant negative impact on your score… Any account that’s closed will have a negative impact. A closed account means it’s no longer active, meaning there’s no benefit. Im sure u know that.
from my understanding, average age of credit is on active accounts. I’m basing it on my own experience because when I closed an acct on the average length on my report, there was a big dip on average age. so if average age was on all accts, my drop would not be that different.
Yes, it's on active accounts. Closed, especially if it's one that has been open for 10+ years will impact your score. This is even talked about on Equifax. It not only affects your credit utilization and length if you had a card open for a long time.
I’ve had and been using a Cabela’s Club credit card, would it be best to pay off the $1200 remaining debt and then cancel it to open a better one? Or should we keep it open and get another one
I have a credit card with a credit limit of 10K. My wife has another card with limit of 8K and I am an authorized user of that card. Is my credit limit 10K or 18K in Chase's view?
Great content thank you but... I did have a card that got canceled (while in good standard) when I was younger because I had not used it in a while, and even though the credit utilization is a good explanation to my credit drop at the time, i could still see the average age dropping on my credit karma app...Should have I not had the same average age for another 10 years ? Or is my actual credit higher than displayed on my app ? Thanks !
Maybe a stupid question but using the camera lens analogy. If you purchase that $2000 lens and then pay all or most of it off before you get your statement. Will your credit utilization still stay at 20% or will it go back to 0% or whatever balance you still have on the card?
Any sources that confirm this claim? (That the card is reported for 10 years after close) Like from the credit bureaus or something? How do you know this information?
You can accidentally close your first card like I did! And it shorten my credit age by like 8 months! That one hit my credit pretty hard! My credit age at the time was only a year and 8 months and it took 8 months off of my credit age! It was a secured card I started with and I just wanted to cancel it and get my deposit back since I started getting real credit cards
Ask around this was in 2019. Also I was able get it back up pretty fkn quick! I just kept the balances low and paid them off in full every month for a couple of months.
Question🙏🏼 I currently have 4 credit cards. (All paid off) total cred limit 23,500. I want to close my oldest card & just manage 3. My newest 1 I just opened has 3k limit & my oldest has a 5k limit. Just looking for reassurance / thoughts (I’ll be loosing 5k credit limit by closing the original & wondering if that could have any negative impact or if it should be fine. Thanks so much!
@@saiayincoby4675 🤔 Obviously not, I watched it in it’s entirety! But was looking for reassurances for my specific situation & the amount of cards that I had. His video was not catered to my particular situation.
@@saiayincoby4675 And the fact that my credit limit would be dropping $5.5K after the switch & if that was okay. But please feel free to chime in if you have an opinion outside of a sarcastic response lol. It would still be appreciated bc no one else has offered feedback
@@saiayincoby4675 My concern - clearly the take away from the video is “yes close it” I guess my question is - “is closing now okay?” & after just buying a car & opening 2 cards within 4-5 months (several hard inquiries) so wasn’t sure if waiting a few months before closing it would make a difference
OMG. I've had credit cards for almost 40 years and I didn't know closing a card was so painless. THANK YOU for helping me declutter my life...
Same here ! Just recently when I applied for a mortgage, the bank said most of my credit card and LOC accounts will be paid and closed first and I freaked out like hell 😂. I didn’t know it’s a good thing ❤
That was a great explanation of what closing a credit card actually does to your credit. I have always been so scared to close my cards, but this video made it sound a lot less scary than most people make it out to be. Thanks John!
You should not close your old Credit Cards if they're in good standing with over 5 years of history.
@@MoneyMelJr It definitely depends on the case, but I don’t plan on closing any cards with no annual fee. And if I can downgrade to a no annual fee version, even better!
@@MoneyMelJrit can be hard to manage a bunch of card which will make sense to do so
@@MoneyMelJrThis advice would leave me paying the $50/yr fee forever, on a no-longer-used card from my college days, just to avoid negative credit effects.
@@MoneyMelJrquestion what should I do if I opened a card in 2013 without realizing it and never used it
I'm Filipino and that intro "shhht" made me look really fast at the screen. Great content as always!
same 😂
lol
haha that's so funny! I had no idea that was a thing!! Are you in the Philippines currently? It's literally one of my favorite places in the world!!
Filipino or Filipino-American?
@@johnsfinancetips Closing an account will decrease your credit score. I paid off my Toyota car loan and my score dropped 30 points. Had nothing to do with credit card utilization.
Never considered that too high of a high credit limit could be an issue, TIL. Great video!
I like this because I’m definitely going to be paying off and closing some of my newer cards but I’ve always been scared to do so until now. Thank you!! ❤
thank you for making such great videos!! i love that you don't talk too fast and you type out when youre talking numbers and equations. Thanks!! best finance videos ever!
Great video, I learned something new! I'm of the opinion of keeping your credit cards open to keep the credit utilization low. Other than risks of fraud, I had no idea about being rejected for having too much credit.
thank you because I was scared to close my First Premier cards. they are Horrible! but after this video I'm calling NOW!!
I have heard keep your utilization below 10% which is what I strive to do. Great video, thanks for clearing some stuff up for me
Thank you so much for giving me the last little boost the cancel 2 of my credit cards. My credit score didn’t take a hit :D
Be warned that this does not always happen at all three bureaus. I have a closed American Express account. It used to report to all the bureaus, but sometime after I closed it, I didn’t notice how long it took, it stopped reporting to most of them. Now it only reports to Experian. So I lost that age on the other major bureaus. And of course since it’s a closed account there’s nothing I can do about that.
Thank you for the heads up! That is something I think you should ask AMEX about since they shouldn't have scrubbed that history - it should be marked "closed" on your report.
I agree be warned . I was piggybacked/authorized user on my parents USAA visa CC since I was 21. Never used it but they did it to help my score. Fast forward 30 yrs and they wanted to close that card and did so a year ago. Transunion still shows it but equifax doesn’t, which dropped my age down about 15 yrs. I went from excellent to bad for “age”. Oddly my TransUnion Score is only a point different than Equifax….which is usually the case…they are always about the same.
I dont worry too much about utilization outside of my ability to pay my balance in full. Which of course I always do ;). If I’m going to need a loan or whatever I just pay twice a month or someone could just not use their card for the month or two.
This may be the best video you’ve made!
Simple, and to the point! Incredible!
My mom put me down as an authorized user on a department store card she had for decades. A few years later the store went out of business. The card is still on my credit score at least in age so it shows my age of credit is older than I am.
Wow that’s insane. Can you dispute that?
My total credit line was 125% of my gross annual income when I was approved for the Chase Sapphire Preferred.
Wow, such a great and simple explanation about closing a card. Thank you! fantastic job!
you are one smart dude John, I wish I had a brother like you.
You forgot the most important strategy… let’s say you have more than one chase card… you can call to “merge” the cards from one to the other which will combine the credit limits and effectively close the old card out…. This shows as more positive on the credit report overall and maintains your credit limit. Also your comment on chase max credit line is true but they will let you continue to open more cards… they will just decrease limits on other cards to make up for the new card limit so you retain the same overall credit limit.
Does Amex in the US let you do this as well?
But if you merge them, you still lose out on the average age of your cards in the long run. It's usually better to convert the cards, if the new product doesn't come with a large sign up bonus.
@@Psi-Storm when you convert a card "product change" as chase calls it, you get no signup bonus
@@sotonin You sign up for a premium card, get the bonus/year and then change the card to a free version.
The hard part is getting companies to close your account when you go through the retention department.
I just canceled 4 cards after watching this. Thank you!
I just learned a lot of new information from this video and I just wanted to say thank you for that amazing explanation and thank you for further augmenting my knowledge with credit. Amazing video ❤
Just THANK YOU 🙏
Appreciate the breakdown 💯
Thank you for this information!!
Thank you so much. Closing a card right now.
Good info…keep up the good work/content👏🏽!!
Super helpful! Thank you John
@John
Thanks for clarifying “late payments” and what actually qualifies as a late payment on the credit report.
The beginning 💯
Thank you for this very much will said
Wow thank you for explaining this !!! ❤❤❤
Wow!! Thats super valuable information!!!
Great finance tips John!
Thank you so much for your content! It helps soooo much!
AMEX in Canada lets you transfer your credit limit from one credit card (not charge card) to another. Once this is done, you can cancel the card with the low limit.
thanks for the share!
Is it only between Amex cards, or can you transfer from other companies?
@@diegosegura7617 There are two types of "transfer":
1.) Balance Transfers: maybe you want to consolidate multiple cards with high interest rates to a new card with a 12 - 18 months Introductory APR of 0%. That type of transfer MUST BE DONE by having a totaling different credit card issuer.
2.) Re-allocation of Credit Limits: you have a Chase Trifecta (3 cards), but one of the cards is used sparingly, and another is used frequently & utilization is high (nearing 30%). You can take half of credit limit from spare card and transfer it to high use card, which will reduce your utilization rate on high use card. Obviously, this is the same card issuer.
Hope this helps.
I called chase and they also allow moving partial credit line to another card
great value video. thanks!
I have $65k in credit limit and closed 3 accounts. Currently at $49k credit limit.
Ok. I'm pretty knowledgeable on credit cards and such, but the one thing I didn't know was that a closed account stays on your credit report for 10 years from closure. I always wondered and now have my answer. Great content! 💪😀🔥
Good to know. Before jumping the actual ins and outs of this game, I closed my oldest card. It had an AF and I never used it. Glad it won't burn me.
Great explanation
Great job!
I recently closed my Apple Card three weeks ago MyFICO score dropped only 1pts for closing it. I closed two cards last month . If a card doesn’t bring you any value, just closed them and avoid any chance of fraudulent charges etc
That's exactly it!! Thanks for sharing this data point as well! Haha you know how I feel about the apple card 😂
@Vanessa Campbell (Credit Counseling Consultant) Thanks for the comment Vanessa as someone who has accumulated over 4M credit card points and miles I also have a really good idea on how to make them work for me. As always my videos are free so please feel free to continue watching!
👍
I got my first credit card 8 years ago and I just got my second credit card this year. If I cancelled the old card, that would mean that it would subtract 8 years from my length of credit card history, even 10 years later, correct? Is it worth keeping my oldest credit card in this case, especially if I want to have a lot of cards in the future?
Utilization under 30% is good, under 9% is excellent according to credit bureaus...
I just opened another 0 interest card. I have no balance on it and the limit is $22K. I didn't read the fine print for a balance transfer. They want to charge me 5% but the customer service rep said the going rate is 3%. I have exceptional credit; why am I not getting that rate. I wanna close it. Thanks!
Really great explanation!
thank you! appreciate the support
Thank you for this helpful information.
Some agencies and banks don't include closed accounts in average age of credit some do.
Thank you so much! A pure genius!
Thanks for the info. I’m about to cancel my Chase Freedom card.
I closed my TD credit card and opened Capital One Quicksilver card
As a former banker, I actually laugh at people who are easily got fooled by believing this video.
Go google and confirm yourself before messing your score up.
just closed out my account, my score dropped 40 points, what the f***!!
Ohh snaP, for relz?
1) When you close a credit card that is in good standing it does not sit on your Credit Report reporting as positive towards your Credit Score.
2) When you close the Credit Card it is on your report, but it is not reporting actively towards your Credit Score.
3) Once your Credit Card is close 45 days from closing it will affect your score just as much as it positively impacted it.
4) I like you John, but I have to create a video addressing this brother.
Great Video!
Thank you!
I love you. Thank you so much 😂
So have maxed 4 of my cc, and now I paid of 2 off them in full, am thinking og closing those, was the best advice
The only reason I wanna cancel my credit card is the high annual fee. Already tried to inquire about downgrading or product switch but Barclay said no. 😢
I love you bro I needed this imma close my cards cause I’m just not good with credit
Thanks!!
Here's what I learned today credit card companies can cancel credit cards if you're a seasonal user under the caption inactivity the law was changed in 2008 if the credit card company consider your card not active enough they can can cancel you with the excuse inactivity and it perfectly legal, one more thing it does effect your overall credit score if you cancel or if they cancel you research it does effect your credit rating
So basically when you close a card, after 10 years before just couple month before, apply for another credit card. Yes history is affected but utlizarion will be somewhat maintaiend cause less of an issue.
I just closed 4 card. If it was costing me any type of money I closed it.
Okay, but if you close a card, I assume that its credit history does not keep growing, right? So let’s say you close a card that’s two years old, it stays “two years old” for the next 10 years?
This seems like it would bring down your average credit age if you have mostly accounts that are older than 2 years.
The 15%, my CS drop close to 807.
But what happens in 10 years when that account falls off your history?
This just isn't true... The "Age" calculation primarily focuses on OPEN accounts thus it's absolutely true you SHOULD NOT close older cards until you've had the newer ones for at least 10 years.
It's the same with getting new cards... I had 3 cards each for over 3 years, and my just showing ONE of several of the cards I got caused me to lose around ONE YEAR of my credit Age. Then when the others cards show up on my credit report my credit age is going to be down to ZERO which is going to hurt my score alot. Of course, in time those cards and otherwise will benefit my score more, but that hit IS still there, and it's going to take some time to get out of it.
Much better info than the video
GREAT video John, could you do a video on the best checking/savings account to have thank you and keep up the good work!
Example I needed tools for work I looked for a card to help US Bank gave me 200 for spending 1000 my tools cost me 1300 plus 1% cash back it’s like I only paid $1087 and 18 months no interest. Allows me to carry cash if I ever had a emergency I can always pay minimum only in emergencies but I always pay off
close the ones that u recently got and keep the balance 0 and owe nothing and then close them and keep the very old one that you have
How does being a AU with a higher credit line effect your ability to get more of your own credit.
Awesome video
i have a sapphire card with over 17k limit I opened in may i want to cancel it because I don't like their no annual fee options and i don't need it i put all my expenses on my amex card i will maybe go for the apple card for the security and no forgin transaction fee but what are your thoughts ?. I don't like having a lot of cards because i don't need them
People worry so much about credit score I use credit cards to my advantage never carry balance on interest cards but don’t mind caring a balance on 0% cards
does unused credit cards for over 6 months hurt me in any way?
Best video ever!
This was great. But my questions is all of my cards are in good standing paid off. But I have 2 that I don’t use but there’s a monthly fee! So I’m considering closing it
Question. I have a cash rewards cards Bank of America. I’ve had it for 6 years. I have a $2,456 balance and a $7,000 limit on it (I’ve had the balance for a long time but i always paid the minimum payments on time) I now have the money to pay it off. I want to get rid of the card because it’s not giving good rewards and it’s it got a $60 annual fee. I’d like to apply for a better one but don’t want it tanking my average score. What’s the best way to go about doing that?
After this video, I still believe that you should never close your first credit card. 10 years down the line, it's going to really hurt your credit score when a couple years suddenly go missing from your credit age for a choice you made 10 years prior
make sure you buy a house before 10 years lol
Wtf we talking bout because I canceled my card with a paid off balance and my score dropped 117 pts?
John Do you think it’s a good idea to close a starter card after one year and graduate to the CO Quicksilver?
it was a great explanation. just a question though, you mentioned that "when you close a credit card in good condition it will stay for 10 years". this is good but what happens after the 10 years? usually, mortgage takes more than 10 years as an example. this means that my renewal will be impacted because I am losing that 10 years of good credit history?
Hello John really good video. Now my question is what happen when my credit card doesn’t have a limit? What will be my top of utilization?
Charge cards like the Amex Gold/Plat don't affect utilization, so you can't improve your utilization score with them, but this can also be good, because they don't tank your score if you for example have high business expenses in a month.
Hi John- late comment here but quick question! You said that closing a credit card doesn't impact your length of history because it stays on your credit report for 10 years. But let's say someone has a 15 year old card that they close. Sure, it doesn't affect their length of history when they close it right then...or for the next ten years...but once ten years has passed won't it then register and cut their credit history by those 15 years? Sure it'll take 10 years to feel the ding but depending on your age wouldn't that be significant?
Good question 🤔
So if you cancel a charge card like the Amex gold or platinum it would technically not hurt your credit since there’s no credit limit?
Correct
What’s that mean?
Hi John! It was just announced that my Ebates Cashback card is being discontinued in September of this year. I will have my balance paid off before then, but I wasn’t sure if you recommended calling to close the account before this date or if when a card is completely discontinued it is better to let it close in good standing on its own? I can’t find any info on this online so if you have a tip, I will take it!
What happens if I go to cash only? What happens if I only use debit cards?
There’s a portion of this video that can be seen as misleading. Closing a card u had for a long time will definitely have a significant negative impact on your score… Any account that’s closed will have a negative impact. A closed account means it’s no longer active, meaning there’s no benefit. Im sure u know that.
from my understanding, average age of credit is on active accounts. I’m basing it on my own experience because when I closed an acct on the average length on my report, there was a big dip on average age. so if average age was on all accts, my drop would not be that different.
Yes, it's on active accounts. Closed, especially if it's one that has been open for 10+ years will impact your score. This is even talked about on Equifax. It not only affects your credit utilization and length if you had a card open for a long time.
I’ve had and been using a Cabela’s Club credit card, would it be best to pay off the $1200 remaining debt and then cancel it to open a better one? Or should we keep it open and get another one
How soon can I cancel a credit card after getting it without it affecting me? Do I have to wait a year ?
I have a credit card with a credit limit of 10K. My wife has another card with limit of 8K and I am an authorized user of that card. Is my credit limit 10K or 18K in Chase's view?
Great content thank you but... I did have a card that got canceled (while in good standard) when I was younger because I had not used it in a while, and even though the credit utilization is a good explanation to my credit drop at the time, i could still see the average age dropping on my credit karma app...Should have I not had the same average age for another 10 years ? Or is my actual credit higher than displayed on my app ? Thanks !
I’m closing my cards for self control 😅
Maybe a stupid question but using the camera lens analogy. If you purchase that $2000 lens and then pay all or most of it off before you get your statement. Will your credit utilization still stay at 20% or will it go back to 0% or whatever balance you still have on the card?
Any sources that confirm this claim? (That the card is reported for 10 years after close) Like from the credit bureaus or something? How do you know this information?
You can accidentally close your first card like I did!
And it shorten my credit age by like 8 months!
That one hit my credit pretty hard!
My credit age at the time was only a year and 8 months and it took 8 months off of my credit age!
It was a secured card I started with and I just wanted to cancel it and get my deposit back since I started getting real credit cards
are you sure it didn’t lower your credit because of the new utilization and not the credit history
@@santiisf yea man I looked over everything even after the cancellation I only had a 12% utilization.
And I got hit for like 30 points.
@@korruptcontent954 that’s crazy, looking to cancel my secured card as well but if it hits hard i rather just continue to pay for it
Ask around this was in 2019.
Also I was able get it back up pretty fkn quick!
I just kept the balances low and paid them off in full every month for a couple of months.
@@korruptcontent954 30pts aint shit get tha back with a nee credit card
Question🙏🏼 I currently have 4 credit cards. (All paid off) total cred limit 23,500. I want to close my oldest card & just manage 3. My newest 1 I just opened has 3k limit & my oldest has a 5k limit. Just looking for reassurance / thoughts (I’ll be loosing 5k credit limit by closing the original & wondering if that could have any negative impact or if it should be fine. Thanks so much!
Did you skip the video??? Cuz thats what the video is about😅
@@saiayincoby4675 🤔 Obviously not, I watched it in it’s entirety! But was looking for reassurances for my specific situation & the amount of cards that I had. His video was not catered to my particular situation.
@@saiayincoby4675 And the fact that my credit limit would be dropping $5.5K after the switch & if that was okay. But please feel free to chime in if you have an opinion outside of a sarcastic response lol. It would still be appreciated bc no one else has offered feedback
@@saiayincoby4675 My concern - clearly the take away from the video is “yes close it” I guess my question is - “is closing now okay?” & after just buying a car & opening 2 cards within 4-5 months (several hard inquiries) so wasn’t sure if waiting a few months before closing it would make a difference
So if I apply for the new card I want to optimize utilization, and then cancel my old one, is that a good strategy?
I closed my jet blue card because annual fee and my score drop 4 points