Ask Terry Questions closing credit card

closing credit card

By Terry Savage on March 11, 2024 | Credit/Debt

I have one credit card I haven’t used in over 2years. Prior to that I used that card for about 10years. I believe they changed from Union Plus to Cap One. I paid my bill as usual through my bank but in the change over it was processed as a check instead of the usual electronic payment. I wound up with late fee which they rescinded but they made me pay the interest. So I kept the card but never used it again. Today I received a letter from Cap One that they intend to close it in June if not used.
I have 2 other CC cards and one debit card. I pay in full each month and my score is 842. I was thinking of opening 2% cash back card. Should I just let that other card close or keep it open..

Terry Says

Closing your longest-held card might slightly ding your credit score –but if you aren’t planning to buy a house, or finance a car, or make any other credit purchases, at this level it shouldn’t matter much. But Capitol One has some very nice perks, so before you close the card, why don’t you contact them and ask about what points deals they have. You might decide to stick with it.

Recent Credit/Debt Questions

money

ASK TERRY

a personal
finance question