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Author: LaraAmber Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308360  
Subject: Re: Is closing oldest CC account a bad idea? Date: 1/9/2013 4:09 PM
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Well your cancelled card will stay on your record for a while, I think 7 years. So when it drops off: your oldest card will have a history of 12 years and your second oldest card (assuming you got a new one today) would have a history of 7 years. Those are both decent numbers. Plus you will have a mortgage on there and I assume not open a bunch of store cards the year the oldest card drops off.

I would be more worried about the credit limit offered by the new card. If the new card will only offer you a $5,000 credit limit your total usage ratio will likely increase. For example if you charge $3,000 a month (and pay it all off) and your total available credit across your credit cards is %24,000 then your utilization is 12.5%. But if your total available credit drops to $15,000 (1 $12k card & 1 $3k card) your credit utilization rises to 20%.

So you might want to call the new Visa company and ask them to match the credit limit of your old one. I've done that in the past with no problem. Drop our competitor's Visa and use us as your primary so we earn all those lovely merchant fees? Sure!

Lara Amber
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