The experts say you shouldn’t do it. They say you shouldn’t cancel your oldest credit card, since part of your credit score is based on how long you’ve had an active credit history.
Well, too bad!
My first credit card — a Citi card I opened in 2004, I think, has been inactive for more than a year. We have one credit card that we still use for some large purchases (and we pay it off right away, of course). It earns us cash back, whereas my first card had no rewards program.
The old card will start charging a $60 annual fee unless I spend at least $200/month on the card, or some nonsense like that.
I think it would be a challenge for me to put that much on the card each month.
Closing this account will leave us with one credit card account only. I think that’s enough.
Our credit score is already starting to creep down, in part I think because we no longer have a car loan and don’t carry other types of debt. It’s funny how you can be penalized for being financially responsible, ya know?
We’ll still use our active credit card from time to time just to keep that active. We’d like to buy a house in a few years, and that’s the only reason I even remotely care about my credit score.
I want to get the best possible mortgage terms we can get.