close credit card or not?

[mkr_00]

I have a capital one card with a 500 limit that has been open for about 5 years. One of the factors that lower my score is having a low limit, according to credit watch. I have 3 other cards with 1000 and 1500 limits. Should I close the cap1 card and get rid of the low limit or keep it open because it is 5 years old?

Thanks.

[thechoosenone]

That would hurt your overall available credit if you throw the baby out with the bath water. Besides you have 5 years of positive history. Are they charging you an annual fee? Have you tried to have your credit increased?

[pointman]

You don't want to lose an open, positive tradeline. Even if it has a low annual fee, say $39, it's costing you less than a fancy coffee every month for the positive history. Call them and ask for an increase to match your other cards.

[CleverCynic]

THey will never CLI the $300 to $500 cards. They're flagged in some way as a certain category for them.

Usually you don't want to close any good TL's unless it's a hefty yearly fee that you can't get waived AND you have other cards with similar age. Either way your average age of accounts will suffer. This is only a maximum of 10% of your FICO though, and you're not going to lose all 10%, but expect a 15 to 25 point drop.

And actually I'm not even sure if the average age of accounts only applies to open ones anyway... it could quite possibly be 10 years before it impacts you (when the TL drops off for good).

[hasas13]

Do not close it.

[Ravenous Wolf]

It really depends on your credit goals. Short term goals are fine but it is really the big picture that counts even if it briefly hurts.

For example, a one goal is to get "very good" credit cards with low rates and good terms, like from credit unions. Good cards from good outfits won't be bending you over every chance they get.

Just starting out, you have to take what you can get when it comes to credit but as the years go by, you should then consider getting rid of the cards from lousy creditors.

[Magdalen77]

THey will never CLI the $300 to $500 cards. They're flagged in some way as a certain category for them.

Usually you don't want to close any good TL's unless it's a hefty yearly fee that you can't get waived AND you have other cards with similar age. Either way your average age of accounts will suffer. This is only a maximum of 10% of your FICO though, and you're not going to lose all 10%, but expect a 15 to 25 point drop.

And actually I'm not even sure if the average age of accounts only applies to open ones anyway... it could quite possibly be 10 years before it impacts you (when the TL drops off for good).

So you think I won't get a CLI on my $500 card. It's 0% for six months and like 16 something after. I'd heard that you get a CLI after 3 months of on time payments. I was trying to figure out something that I needed to buy, just so I could use it and PIF.

[jq26]

I have a capital one card with a 500 limit that has been open for about 5 years. One of the factors that lower my score is having a low limit, according to credit watch. I have 3 other cards with 1000 and 1500 limits. Should I close the cap1 card and get rid of the low limit or keep it open because it is 5 years old?

The other cards that you have....how long have they been open? If they've been open for roughly the same amount of time as the CapOne card then I'd ask them to remove the annual fee. If they don't, then close it. It should not hurt you if you have other cards that have been open about the same amount of time.

If this is your longest tradeline, and you have a big purhcase coming up within a year, then keep it open. No big purchase (car or house), then close it anyway. No sense in spending the money for nothing.