Cancel Credit Cards

Financing, Hard Money Lenders, Private Money
1

I once heard that when getting a new credit card, the old one should not be cancelled. Just put it away and don’t use it. If you cancel, you reduce the overall credit available to you, and this lowers your credit score.
Does anyone know if this is true?
If it is, then what about anual fees or low balance fees on the idle card??

thanks,
dan

2

Hi Dan,

       Yes that is true.

Now, you can cancel the old card eventually by allowing the new card time to season, usually 1 year and not using the old card, keeping the same balance you have today or reducing that balance and then cancel the old card which leaves a temporary hit to your score but will come back within an additional year.

I think new one against old ones position you might lose 10 Fico points when you cancel the old one in one year and regain back to where you are now or stronger within two years.

Good Luck,

              GR