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Credit card expiring.. Should I close it?

Q

Qacer

Platinum Member
I got a letter from Clout.com stating that my credit card account will be expiring soon. I opened the account in 2000 as a student. However, I have not used the credit card since 2002 or so. It still shows up in my credit history as an open account. The next two credit cards that I opened started on 2004.

I really don't want to keep my Clout.com account since I haven't used it in ages. Plus, I don't remember where I stashed the card. It's in my drawers somewhere. My question is: if I let it expire, will it drastically affect my credit score?

I already have three other credit cards that I use frequently (Amex, Visa, and Discover). However, these accounts were as early as 2004, but they are in good standing. I also have an existing car loan and student loan. But the student loan is almost paid off and the car will take maybe another 3 years.
 
An expired card doesn't mean anything, they'll probably just send you a new one. Having an open card is fine when you have no other cards, but there's no point to keeping this one open. I would close it.
 
In general it is better to keep the card. They should just send you a new card a few months before it expires.
 
If it has an annual fee, call them up and have them take it off permanently and just put the card in a drawer and forget about it, if they won't close it.
 
There are 2 ways it might affect your score...

If the this account is your oldest account, closing it make your credit history seem shorter which can lower your score.

Part of your score (35% IIRC) is based on your current balance to credit limit ratio. Closing this account will reduce your available credit and increase this ratio (which is bad) and will lower your score.

 
Normally cards renew automatically. But if you don't want it, call them up and request it be closed. Also request that they report is as Closed by Customer Request just to prove that you asked them to close it and not that they closed it on you on their own.

Either way, one card isn't going to have a huge affect.
 
Originally posted by: Kelemvor
Normally cards renew automatically. But if you don't want it, call them up and request it be closed. Also request that they report is as Closed by Customer Request just to prove that you asked them to close it and not that they closed it on you on their own.

Either way, one card isn't going to have a huge affect.
Click to expand...

Effect, my friend, effect.

/pet peeve...sorry.
 
Originally posted by: Kelemvor
Normally cards renew automatically. But if you don't want it, call them up and request it be closed. Also request that they report is as Closed by Customer Request just to prove that you asked them to close it and not that they closed it on you on their own.

Either way, one card isn't going to have a huge affect.
Click to expand...

Haha, sure it won't. One card depending on how long he's had the card and the ratio of account balance to account limit could have a HUGE impact on his score. The biggest being the ratio of balance to available credit. However, if the balance is a very high amount compared to the limit and the card is new, cancelling most likely won't make a dent. But if it's a $9,000 limit card and a balance of $1,000 and you've had it for 10 years, your credit score could drop SEVERELY. Best advice, if it's got a high balance, pay it off completely. After that, keep the account open and just shred the card or put it in a safe for a rainy day. The damage to your credit score was done when you first received the card so closing won't help you at all.
 
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