Should I Cancel My First Credit Card

Should i cancel my credit cad?

im 19 years old and i currently have a citi bank student credit card whit a credit limit of 500 i got it 9 months ago and i have a 21.74 APR today a Discovery Credit Card student offer came on my mail and its not the first time it says that their APR is between 11-18 % my question is should i cancel my citi bank credit card or keep it a little longer since is my first credit card. i currently have 0 balance on it which means i own nothing. should i cancel it and open a new credit card on Discovery wiht a lower APR ? i dont know what to do or whats best for my credit i dont want to mess too much whit my credit what do you think is best for me?

Should I cancel my credit card?

The only way to build an excellent credit score is to be granted credit, to use it, and to pay on it responsibly. In your case, it is not so much about the harm of closing the card, but the benefit you gain by keeping the card open.

Three important components of your credit score include:

1. Payment History- Don't pay your bills late. Even though it takes a 30-day late payment to harm your score, being even a day late can result in late fees and a permanent hike in your interest rate.

2. Credit Utilization- Your score is affected by how much of your credit limit you use. As far as maintaining strong credit, a general rule is to keep your balances below 30% of your credit limit. (Paying off the debt in full each month will save you money on interest, but the 30% rule is for keeping a strong score).

3. Length of Positive Credit History- The length of your history accounts for 10% of your credit score. Therefore, opening a card when you are young will pay dividends over the long haul. It will also make it easier for you to open other credit accounts or qualify for an auto loan or other financing.

I recommend that you keep the card open!

Should I cancel my first credit card?

I have Capitalone with the limit of $300 per month. This is my first credit card of March this year. Should I cancel this card because I have another card recently opened up with Credit Union with lower interest and higher limit. I want to cancel my Capitalone card because I don't want to many cards and lose track.

By canceling, would it affect my credit score? And If I were to keep it without any transaction, would I be charged for not using the card?

Thank You.

Should I Cancel My New Credit Card?

right this is why canceling enjoying cards can harm your score, especially. Your credit, different than for on-time bill funds, is in step with 2 different variables: your income to debt ratio and your debt to credit obtainable ratio. consequently, in case you cancel the enjoying cards, enable's say each and every card is granting you a minimum of a $5,000 credit minimize, you're reducing your obtainable credit with the help of very very nearly $15,000 mutually as your different debts stay the comparable. If on that final card you have it maxed out (which you assert you do not, yet to illustrate), then yeah this would mirror badly. If nevertheless you are able to do away with the soundness on your fourth card, possibly even ask the cardboard company to develop your minimize once you're thinking of preserving it and you qualify, then slowly cancel the different 3 enjoying cards one after the other, this would positioned you in extra advantageous shape. nevertheless, the actuality you had very nearly 4 credit enjoying cards on your record is going to bite you slightly finally, yet credit does heal with time. in case you have not considered your credit record in a mutually as, i'd attempt making useful you have not any mastercard debt and cancel certainly one of them. Then a month later, verify your credit record (you may get a credit record for loose as quickly as a 300 and sixty 5 days). See the place it falls. something above 650 is seen a great score, so once you're above that, i'd think of you would be nice to do away with the others too.

Should I cancel my first now obsolete credit card?

It is really bad advice when people tell you to keep all credit cards open -- especially when the tell you to cut up the card. Inactive accounts do NOTHING to build your credit. Eventually the card company will close the card due to inactivity. Total available credit really does not give you a better score.

It is also foolish to keep accounts open that you don't intend to use. Too much opportunity for fraud and ID theft.

Closed accounts in good standing remain on your credit report for at least 10 years. They just don't count as much in your score as open, active accounts. If you have not been using the card, you probably won't notice the difference.

Closing an account lowers your overall limit which could result in your debt to limit ratio going to more than 30% IF you carry balances on other cards. If you don't carry balances, this makes no difference.

Closing your oldest account lowers your average age of account which can hurt your score. But if the account is less than 4 years older than your other account, it won't make much impact.

My recommedation is to close the CapOne card via letter. Request written confirmation that the account is closed and 0 balance. Ask for your deposit. Keep that confirmation forever. This account is not worth the annual fee.

How can I cancel my First Premier credit card without paying fees?

Don't activate the card. Send them a letter saying that you changed your mind and do not want the card. Ask for written confirmation that the account is closed and 0 balance. All those fees should be credited off. Be sure to keep a copy of your request and their confirmation in your 'forever' financial file -- just in case.

Find a credit card that doesn't charge all those fees. You may have to get a secured credit card -- you pay $x deposit which is held as collateral against the credit line. Use the card and pay it in full every month. After 6 months to a year, you can convert the secured card to a regular account.

How long should you keep a credit card before cancelling it?

I'm young and just got my first credit card to get credit and I tried applying for a few with no annual fees that gave me the opportunity to apply but never got approved. And the one I did get approved for has an annual fee. It's not a lot but I have been told annual fees are pointless especially since this card doesn't offer rewards. I just want to earn credit for my credit score so how long any of you would suggest I should keep this card until I can cancel it to apply for a no annual fee card?

Should I cancel these credit cards or keep them open?

I need more information......interest rates in particular and what amount you can afford to repay on a monthly basis.

You're correct - Credit Cards are a great invention and (if possible) keep them. I wouldn't bother too much about the smaller ones - they're not worth the plastic they're printed on.

Go to my profile and see my previous answer to another question about Credit Cards.

Some Banks offer Credit Cards with what we call "Honeymoon Interest Rates". These are greatly reduced rates of interest, offered over a defined period of time that are designed to get new customers by transferring their outstanding balances to the new Bank. If you can't pay the existing outstanding amounts in full - it could be a good idea to seek out a Bank who offers this type of Card and sign up. By doing so, you can cancel a few of the smaller Cards, thereby consolidating your debts.

If you're unable to figure anything out - go to the Bank where you have the $8.000 Credit (nil balance) and ask to speak to their Financial Adviser and tell them your situation. They will design a strategy plan to suit your ability to pay ... AND ... to survive without imposing stress on your living standards.

Good luck.