Got a new credit card; should i cancel other account?

[PoPPeR]

Old Card: Wells Fargo platinum visa. 1500 limit. 20% interest. Limited online banking options, takes long time to update
New Card: MBNA Mastercard. 2500 limit. 8% interest. Some perks like one time online purchase card #'s and stuff.

I'm only 19 and really don't need all this credit (getting approved for my new card was actually a mistake, but it happened and the card is a better deal anyways).

Is there any reason to keep my wells fargo account active?

 

[kritical]

Depends how responsible you are. Its good to have a lot of credit just in case of an emergency but if you don't think you can handle it, then its a better idea to get rid of one of them.

 

[Sex Smurf]

Keep the old card someplace safe and don't use it. i'll be the starting point of your credit history

 

[CRXican]

Originally posted by: Sex Smurf
Keep the old card someplace safe and don't use it. i'll be the starting point of your credit history

yep, keep the old card open, just don't use it

 

[PoPPeR]

Originally posted by: kritical
Depends how responsible you are. Its good to have a lot of credit just in case of an emergency but if you don't think you can handle it, then its a better idea to get rid of one of them.

well i've never carried a balance and i've had the wells fargo card since january 2004. Just wondering if having a bunch of credit available on my record was a bad idea. I certainly dont plan on using the card, but I suppose an "in case" is always good. I'm only 19 though and fully supported by my parents so the likleyhood of that isn't great either.

 

[Mo0o]

I have 3 atm, only use 2 regularly. Keep them.

 

[kritical]

Originally posted by: PoPPeR

Originally posted by: kritical
Depends how responsible you are. Its good to have a lot of credit just in case of an emergency but if you don't think you can handle it, then its a better idea to get rid of one of them.

well i've never carried a balance and i've had the wells fargo card since january 2004. Just wondering if having a bunch of credit available on my record was a bad idea. I certainly dont plan on using the card, but I suppose an "in case" is always good. I'm only 19 though and fully supported by my parents so the likleyhood of that isn't great either.

Well keep it, but dont keep it in your wallet. Put it somewhere safe and vow not to touch it unless you can afford to.

 

[RossMAN]

Originally posted by: CRXican

Originally posted by: Sex Smurf
Keep the old card someplace safe and don't use it. i'll be the starting point of your credit history

yep, keep the old card open, just don't use it

Bingo.

 

[Sphexi]

Banks and loan companies look for you having credit accounts for more than 3 years usually...getting and cancelling cards/accounts within a year is usually NOT a good idea. They take that as a sign of instability and can actually work against you.

I've had a gas card (yes, for gas and junk from Mobile) for like 5 years now, almost no limit on it, but next to my student loans it's my longest running credit account. I have three other cards, two for over a year now and the other is brand new, I'll have them for at least another 3 years, I use them to pay monthly bills then pay them off when I get the bill, so I always show having a balance but never a past due. Shows that I know how to use credit to my advantage but not get bogged down by it.

 

[spacejamz]

Since part of your credit score is determined by your available credit, slashing $1500 of this amount will lower your score. Also, if that old card was the first credit you established, you are going to shorten your credit history by cancelling your oldest account which also may lower your score...

 

[PoPPeR]

i see. Ok well looks like everything I assumed was absolutely incorrect. Thanks for the info & advice

 

[leggomyeggroll]

you are lucky you asked ATOTers about this, cancelling your credit cards is not going to do you any good whatsoever, in fact it'll lower your FICO score. i'm not happy with the # of CC i have, but i'm not going to close any down (at least not anytime soon), buti have the card that i really need, citibank with the 5% back on grocery shopping and gas, the rest i just keep it at home safely. it can't hurt to keep the other open and put some stuff on them every once in a while.