When To Cancel Credit Cards
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- Опубликовано: 13 сен 2024
- Many have asked why I cancel credit cards. They wonder if it hurts my credit score. The short answer is yes but at some point, I care more about the potential new sign up bonuses than my credit score since it is high enough already. When you have a very high credit score, you have the luxury of cancelling credit cards. If you opt to only cancel the younger cards, it would not matter as much. It would also be best to cancel out cards that have a high annual fee as well. There are many reasons why you should cancel a card and it certainly is not for everyone. Let me explain the reasons clearer in the video.
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I feel like you know every single trick to saving money lol. Blows my mind how you upload everyday with quality content. I need to step my game up.
Would be cool if you gave some tips to new RUclipsrs.
I'm no RUclips creator, but...
1. Don't advertise yourself on others' RUclips pages all the time.
2. Don't manufacture likes for your comments.
3. There are a few free courses on RUclips of all places that help with things like video framing, content, marketing, etc.
4. If you were to ever find yourself in a position where you are unhappy with what you are doing, it may be a good idea to focus on the things that you excel in!
Good luck
There were 2/3 videos the last week that relates to RUclips. Save Money start a RUclips Channel is one: ruclips.net/video/dIL85VTlaYA/видео.html
Regarding Devin's comments.
1. I have never advertised myself on another RUclips page.
2. Never bought likes or views
3. I don't know how to do video so I just learn the ropes as I go. Framing? I might have done this through my picture taking interest.
4. Yes, do subjects you are interested in.
What credit card should you recommend for college students ?
I have about 785 points of credit score and currently on BankofAmerica Cash back card. Should I apply more than 1 card ?
yes it is possible it's called "manual underwriting" but it's a huge hassle. Besides, what most people encourage is to not spend money just to increase your credit, but to "funnel" money you'd spend anyways through your cards to take advantage of promotions and increase your credit history. Of course, this only works if you are disciplined with your money.
Yup! Just spend what you normally would on the cards and take the cash back.
I love credit card churning. I can't remember the last time I paid for an international flight.
Amazing tip! I called my credit card and they have me money back on my annual fee! Thanks
Nice one! Glad you got it! =D
Another option you did not mention.
With annueal fee cards you can do a "product downgrade" and down grade that annual fee card to a no annual fee card, and still keep that credit history.
You can do that but that makes it so you cannot get the card for the same bonus again a few years later.
That card is awesome if you fly at least 2 times a year roundtrip and use Uber/Lyft a lot. Travel insurance and Jetblue airline access make it worth it.
Yeah if you travel a lot for a good reason then it can be worth it.
My credit and income in general isn't at the level where I can churn credit cards for rewards yet. I'm just in the rebuilding phase... I have 13 low limit credit cards right now and most have annual fees. Recently, I got a $300 limit increase on 1 card so I decided to close my account with Indigo which only had a $300 credit limit but a $75 annual fee. I'm hoping to do more of this type of canceling this year as I'm due for more increases on other cards.
If your goal is to get another thank you bonus from Citi cards in the future, keeping the TY premier card for another year can actually help you churn the card bonus again sooner. You probably know that Citi has a rule saying that you cannot get the bonus if you open or close the same type of card in the past 2 years. By closing the card, you will have to wait 2 more years to apply again to get bonus vs if you keep the premier for another year, you can then apply for another premier card one year from now to get the bonus again before closing your old premier card.
Citi also has several retention offers. Just keep asking if there's any "other offers" and then pick the one you like.
Citi is great with product change, you can always product change to another no annual fee card like thank you preferred or Citi Dividend card to have rotating category bonuses like Freedom or Discover it. Costco card is also good if you have its membership.
Good point but I'm skeptical about being able to get another premier card.
I have a 3 year old Prestige and a 2 year old Premier along with two other Citi cards. I just recently applied and approved for another Premier (my 5th with Citi). A data point like this is not hard to find. Just FYI. Once I get my bonus from my new Premier, I am going to product change my old Premier into something else. I might product change my Prestige or keep it depending on what retention offers they provide.
Hmmm. thanks for the pointer, I'll have to think about this.
The "retention department" trick has not worked for me. I have transferred my cards with AF to cards with no AF. For instance, I did a product change from the AAdvantage to the Citi double cash. I have had luck keeping available credit with a company. When you start a new card, they will provide new credit and give you a chance to borrow swim credit limit from another card. As you mentioned in the video, my goal is to have a few cards with no annual fees to maintain long credit history.
Ahh, at least you tried. Sometimes they just let you cancel, almost seems random.
1. The credit cards I have don't come with an annual fee. I'm kind of in a weird spot with my Target credit card, because they require you to use your credit card about 3 times every year (wasn't like this with my first couple of years with this card). If I don't use the credit card, they will cancel it. What do I do? I buy something I need, use a coupon, and I make sure my item is at a low price. :D
2. I heard that you should keep (AND NOT USE) your credit cards. If you cancel your credit card, you can bring down your credit score. Unless your in a situation where you're paying an annual fee for the card, you should consider canceling it. To me, it's kind of weird to pay for a service that's already charging interest to borrow money. On top of the interest, I have to pay an annual fee to borrow that money? NO, I don't so LOL
3. Generally, I rarely use my credit cards. I have them more for an emergency. I try to remember that these credit card companies want MY money-they don't care about me or anyone else. Therefore, don't listen to any of their commercials. They will make you believe that this credit card will make you a big shot, you'll get more stuff with their incentive point system (yeah, but you're also spending more money to borrow from credit card), or you could have a really cool/artisitic looking card to show off LOL. I always heard that advice of paying things out of pocket. A card should be the absolute last thing you turn to.
I know someone who once believed 'Rich people don't pay cash they use credit cards" That relative ended up having over $20,000 in debt and it took that relative a few years to pay it all off.
Credit cards are tricky to use. You have to use it correctly to have it be beneficial.
Credit history is not "wiped out" when you cancel a card. It still shows up in your report with high balance, credit limit, and "on time" payment periods.
Your total credit limit is reduced.
Yes but that's an entirely different thing. What you should have said is that your debt to credit ratio goes up (but only if you are carrying balances) and that may negatively impact your score. But it is false to say - as you did more than once - that your credit history is "wiped out". Inactive or closed accounts will remain on your report for 7 years, and count positively towards overall score if they were paid on time.
Don't worry about transferring the credit line when you close an old card. Part of new credit card application disclosures include a possibility that a portion of an existing credit limit may be allocated to your new card in order to approve your application.
Sincerely,
Guy who processes credit card applications all day for a major bank
By the way, I have followed your advice for over 1 year and have risen my credit score from 480 to 700. I was recently approved for the PRG card and recommend your videos to all of my friends.
I'm glad! But then you process applications? Sounds like you didn't really need my help. =D Yeah, I never really transfer my credit as it just take too many extra steps.
Could you do an airline specific video? I think I made a major mistake getting the southwest card 😧
Really? That one sounds not bad if you can use the signup points. I don't do many airline cards since I don't travel all that much. Only 2 times a year or so.
Good content
@BTB, I was thinking the other day that I "drive frugally" (accelerate slowly, only fill up half a tank at a time, minimize AC use, etc). I was wondering if that would be a good video idea for you.
I guess that would indeed save money. However, for myself, I'm too impatient to drive frugally. I prefer to save time and drive efficiently getting from point A to B with minimum cost including minimizing tickets.
Hi,, it's me Attorney96, I updated my info. So I'm wondering are you going to do any reviews on new credit cards? There are several new reward credit cards on the market. Looking forward to it. Thanks
Have you considered doing product change to avoid annual fee and canceling the card? This way you can retain the credit history w/o paying an annual fee.
P.S.
Not all CCs are eligible for product change but the one mentioned in the video is.
Correct. Since cancelling a 3-4 year unused credit card (with annual fee) would actually hurt your credit score also.. and even more if you had a credit use history on it..
That's a g ood point Farhan K. I wonder what +Beatthebush thinks about this..
Yes but I rather cancel it so I can get the same card later again.
It's a 2 year card and I only used it for a 2-3 months out of that time. Credit history wise, it doesn't matter to me.
Thanks for answering :) Do you think it would still affect your credit score a lot?
Being able to apply for the same card again in 2 years definitely sounds good. I am still a little unsure about the following two items and would appreciate your input.
1) If you do product change, do you lose the ability to apply for the original card in 2 years time? My understanding was that canceling the card and doing product change would both allow you to apply for the card in 2 years time, no?
2) Are you aware of any long term negative impacts if you were to cancel too many cards?
I find your videos very informative. Thank you for taking the time to share your knowledge with us!
Nope, I do this all the time. But I'll know next month. Usually it might dip 5-10 points when I apply to a new card but not much when I cancel.
Would canceling a secured credit card that has a balance, a good idea?
If you have a secured card, you should not cancel it until you have solidly established your credit score. Cancelling like I am doing here is only if you have a very excellent credit score of 740+
All bank that I have encountered let you voluntarily lower the credit limit after the introductory offer.
But why would you. Only if you cannot control yourself from maxing it out.
I just got approved for Citi ThankYou Premier card last week for 50k bonus after 4k spend. I plan on switching it to Double Cash before the first year anniversary. I don't have DB and would never open it as id since there is no sign up bonus. Citi Re upping it from 30k to 50k did come at the right time.
If you don't already have a double then that is a good way to go.
Very helpful!!
=D
So we should cancel the AF cards in the 21st month?
When are you going to do a collaboration with Ask Sebby? Seriously. You both have a lot in common, yet there is an ideological divide that would be interesting to flesh out on camera.
You're both into maximizing the benefit you get from credit cards, but you have two different goals:
The BeatTheBush optimization goal is to increase individual net worth as much as possible.
The Ask Sebby optimization goal is to get the highest value possible.
Both are valid goals, of course. It depends on what one is looking for.
Not sure as I am sort of off in my own world here doing videos of all sorts that I feel could help the general population.
To me, highest value is more about getting it right now. However there is an MSRP value, a street price value, and also value to you. I generally focus on value to yourself as that most important factor.
I do pay an annual fee but its my lowest interest on of all my other cards. I'd cancel if I didnt have a balance. Considering how much interest I pay on my other cards, the annual fee is worth it. But I'll try this.
Sometimes you just have to go with what gives you the lowest cost considering that interest rates. You could get some 0% apr cards but maybe that's bad for you to get more, lol.
washer / dryer clothes care settings to make clothes last longer!
What does care setting mean? They turn it gentler?
Yeah. Like perm press, delicate, heavy, and sorting and separating clothes to decrease wear? I think the pants zippers tear holes into my clothes because I'm too lazy to turn them inside out for example.
You have point there... close the zippers and protect them from rubbing other things.
Some people let shitty ROI cards turn into cards that have a 20year good history.
If they cancel those cards, that’s 20years that won’t factor into their average age of accounts.
A randomly question, it has nothing to do with title of this video.
I like to work with people of any personality type. However, at this moment I am interested to change career where I can still work with people but less of them. Maybe less co-workers, less customer service, less face to face people. What areas do you know or if you know have some or less people interaction.
Thanks
Not sure what your skills are because that will dictate where you go. Internet cafe attendant seems to have low interaction. Or a security officer at night.
hi! what are your thoughts on the chase sapphire reserve credit card? would love to see a video comparing credit cards :)
I don't have that card yet and missed the 100k points bonus from before. I might still get it though. I only review after I used it.
What would you suggest on an Amex Gold card that charges annual fee but you have been a member since 1981. Does it make sense to cancel a card because of annual fee that has a 37 yr history on my credit report?
If you don't cancel the card and just cut it up instead, should you still worry about checking every once and a while that there aren't any fraudulent charges on the account?
Depends how your number gets stolen. You could have someone use your number on a card that is idle. Maybe they stole it in ways other ways.
I like all the video you put out, but this one is a bit confusing. Not everyone has an 800+ score like you. Cancelling a card that is almost two years old can really hurt some people. BeatTheBush can cancel two cards on the same month and still have an 800 credit score. I think it's best for people to stick to no A/F cards with rewards, because some of these card with A/F you cannot product charge to a lower card, you can call 10 times for the year, and get the same answer.
Correct. This is about why I cancel them and it will be very different if you do not have a high credit score. Very true with no annual fee cards UNLESS you can get enough value out of them but you certainly should cancel after the 1st year in most cases.
I have a pretty high score, around 820, I have never cancelled a card I just cut them up and stop using them because I heard cancelling can negatively impact your score.
I sure can. I only do this for the future benefit of getting more cards. If you just want a higher score, sure, just keep them as long as there's no annual fee.
That strategy only works if the card doesn't have an annual fee. Otherwise you are correct.
i have citi costco visa with 3% trvl and no fee.
Quick question....I am not sure if you addressed this or not (I have to stay over at work, so I am listening really low), but when you cancel cards do you request that when they report to the agency that it was the consumer who closed the account? I remember someone telling me to make sure to tell the cc company that so my report would not look bad. Any truth??
I request nothing. I just close it. You see, it's because I don't care either way because my report is not affected much.
Do you have a video about how often we can apply for credit cards?
Go for about 2-3 a year. No vid needed. =D
Ma man the credit guru
Someone else I watch for credit card advice said if you still want to keep your credit history, you could ask the credit card issuer to downgrade your card to a no annual fee one. Have you tried this method before, or is that not possible with the credit card you were talking about?
Yes you can do this but I cancel because I want more points later one.
I have several open accounts with zero balances. My credit score is in the 800s. Would it be wise to close accounts that I will probably never use again such as credit for dental and a mattress that I got zero percent APR for 12 months. I'd like to maintain my credit score, but will not need some of the credit for many years. I'm feeling like my credit is looking messy although I don't carry a balance on any of them.
Depends how many cards you have in total. I prune mine sometimes. If the history in those cards is short and the limit is small compared to your total, you will not see much difference.
BeatTheBush Thank you! I will close a couple and see what happens. I love your channel!
Thanks! =D
How do you feel about the more premium travel cards? ~$500 annual fee but some nicer stuff like lounge access, travel credit, trip delay insurance etc. Currently not worth it to me now but I could see it if you travel frequently.
Actually found your video on the topic, think you match my thoughts. I don't fly much at the moment but plan on traveling once or more monthly for a year or 2 when I knock out my student loans. I think in that scenario a high AF card makes sense
You really have to see how much value you get out of it. And by value I mean what you would pay for anyway without the card and not what they say it is valued at.
You should have used your points before canceling your cards.
Correct! You use and I get so paranoid I even use the gift card credit too.
I just got my first credit card this month it has a $300 limit, you have a video saying I should use it all and then pay it before it is sent to the credit bureaus. How do I know when they will send it to them so I can have it paid off before then?
Dakotah Mendez I recommend watching his video were he teaches how to understand your credit card statment.
You have to find out what your statement dat is. Since many people ask, I made a whole video just explaining this in detail here: ruclips.net/video/3-knvT7JbTk/видео.html
Why having a credit cards in the first place? Most points/mileage are never used by most people
Unless you are not most people and you actually use it. Don't know about you but I use ALL of mine. =D
Mostly to improve your credit score. You need a good score to Rent apartments in some places. Some jobs check potential employees' Credit score (banks/businesses), to buy a house down the road (He's from california homes are well above 100k not easy to save up and pay cash)
Isnt it possible to get loan on a property without a credit score? (Such as, employment history + investments).. Isnt counter intuitive to spend thousands to build up my score so that I can get a loan for a 100k dollar house? Can't I do it by having a larger down payment?
It's possible but you bet you'll have to do a lot more paper work if its not a lot already. You are not spending thousands extra to build up your score, you want to funnel what you would normally spend through the credit cards.
If you can buy 100k home with cash, then by all means. But still used credit cards responsibly because you can still get your few percent cash back.
They got you arguing over how much credit card debt you are willing to go into makes no sense
Lol... in terms of giving me more credit? lol, yeah.
so how many times did you call citi and ask them if they can wave the annual fee? depending upon the person depends if the card is good for them. People who travel on business this would be a good card for them. somebody like you and me no this isn't a good card for us. when they said to you they can't wave the fee I want to cancel the card did they ask you if you want to down grade to the Citi thank you preferred ? are there any travel cards that your going to apply for?
my last card I canceled was back in 2010 the Chase Freedom. before around 2006 credit cards were gold , platinum and grey mine was a platinum and didn't offer rewards just original credit cards. before that I canceled my First Fidelity credit card after getting preapproved offers in the mail gold cards with no annual fee and my first fidelity was a grey card with an annual fee of 15.00 chase was 25
and citi was 20.00. something to look at.
I wanted the card one year ago but do not care about it any longer. So I only tried to cancel the card just this past year.
Hi,i am new to the credit card system and i want to know can i just buy a card that i can put my money in it and just buy with it
btw i like your work
That's just what they call a secured card. You put money in and you get that limit. However, you still get a statement which you have to pay. They just hold the money to secure the money you spend.
that sounds like you're giving the card issuer an interest free loan - i'd rather put that money in a mutual fund.
You didn't want to product switch to the ThankYou® Preferred Card?
If you switch you do not get a sign up bonus.
Ooops... Didn't think of that! lol
will be cancelling amex platinum now that its $550 don't value uber credits to justify that
Yup.. Cancel ALL of those that has an annual fee. It's hardly every worth it.
I'm totally confused. You started out the video by saying you wanted to keep the card but just didn't want to pay the AF. When you called to cancel they offered to waive the AF for you. They offered you what you wanted in the first place. Are you just mad at them that they didn't give you what you wanted with your first phone call and you had to make a second call? Maybe it's just me but according to you, you wanted to keep the card but have your annual fee waived. They offered to do that for you, exactly what you asked for PLUS 10,000 bonus points and yet you canceled anyway. You're my favorite channel but I sure missed something with this story.
I called to cancel the card just this past month. I wanted to keep the card after the 1 year mark which is close to 1 year ago. Since then I no longer want the card opting to get it again later instead.
If you request to increase your credit limit, does it affect your credit score? Will it go down?
If a hard inquiry (likely) results from the increase request, you will have a slight decrease in score but it should raise back up possibly higher because higher limit = lower utilization. Spending less on the card is a quicker way to get this result.
Where is the low balance video?? Also...I have a very high credit limit secured card w wells Fargo and after 5yrs and credit score of 800..never late and don't owe anything on it...still will not upgrade me. Should I cancel or lower my credit with them?
You have to click that 'i' icon on the upper right when I mentioned it and a video will pop up. If they will not upgrade, you should get other cards and build up your credit through those other cards. Then eventually, you can just cancel them.
Hey BeatTheBush I just recently found your channel and was wondering if you could tell us about yourself for example what your day job is or where you generally live just to know your of living, I'm curious to how much you make/save but thats very personal. I'm curious to those since you do give financial tips but ofc your advice is good and your money statistics wouldn't change that fact.
I am also curious how you feel about people like Grant Cardone who( don't get angry if I took it the wrong way) investing more than saving to become a millionaire. And says that saving isn't going to make anyone a millionaire as that was taught to us by our parents who lived when interest was 12% but now that it is less than 1% it is no longer the way to get rich.
I've been holding off on an about me video and sort of on the fence on that one still for privacy reasons. I'm an engineer in California. Saving is only the first step. After you saved enough, you take the extras and invest it of course. I don't recommend people just save cash and stick everything in the bank beyond their emergency fund or unless they have some immediate need for it such as down payment on a home.
Its really cool how you respond to most of your comments and is a big reason to why I like this channel. Would it be possible to PM you as I have so many questions and I just entered the adult world. I think it would also help you get more ideas for new videos if you haven't already thought of them.
You can message me through RUclips messages or through facebook.
If you cancel your card, do the interest payments of your current balance stop?
Jason Waite this is an interesting one. BeatTheBush please see and answer this one since I'm sure that you know lol
Usually, your balance becomes immediately due.
Cancel a card is a bad idea
LOL. I do it all the time. My score is around 835/850 right now. Not everyone can do it like this though.
Quick long question for you I had recently got a Best Buy credit card visa the employee applied me for and what I didnt realize it was a visa instead of the in store credit card so I’m stuck on what should I do I would keep the card but it has an annual fee of 59 dollars so should I close the credit card and apply for instore credit or should I just leave it open and I only have 6 months credit and score is 701 and I have another card that limit is 1200 and the Best Buy visa is 1000
I would bite the bullet now and cancel the card. You do NOT want to keep the annual fee cards around as it drains your money every year. The longer you keep it, the more you are inclined to keep it for the history. You can try to open the store card first before cancelling because cancelling might cause your score to go down a bit.
BeatTheBush how many points would you expect score to go down
Don't know.
I have just opened two secured credit cards (thinking my credit score would be higher if I open two instead of one ) my credit score did go up 59 points and it is now at 584, 592 , 659 ... my bf just got approved for a credit card with a limit off $3000, would him adding me on as a authorized user increase my credit more , or would I be making it worst. I'm working on raising credit score fast as I plan to buy a new car by March of next year . Please help ! I am also paying off both of my derogatory items on my credit report.
If he add you to his $3K card it will increase your overall credit limit, which will make your credit utilization look better overtime your score will go up much faster. But you have to be careful, whatever happen on his credit card will affect you too. Try keeping the balance under 30%= $900 to even see a better score try not to use more than $300 and pay on time. Paying off derogatory without asking for pay for deletion will not remove it of your report. Don't talk to the collectors on the phone, send them a certified letter, offer to pay half of the balance but they must remove the collection of your report, and ask that it is sign my a manager and return back to you.
Donald C thank you very much ! You were very helpful .
You welcome. if you haven't contacted the collector, I can give you the letter you can use to negotiate with them. donaldc001 yahoo.
Your bf needs to have good credit for you to benefit of you getting added to his credit card. You could also try with credit builder loans to boost your credit. ruclips.net/video/RNXutBGAnlM/видео.html And also, you may want to use the boosting trick outlined here: ruclips.net/video/LyBjciz4-zg/видео.html
Luckily I don't have to care about credit scores - no debt means no need for loans. The credit score is designed to drag you into debt and make you spend money (whether you have it or not) just to have a decent score. The national debt on credit cards (US $764 billion) and $1.17 trillion on car loans is a disaster waiting to happen come the next recession.
That's really interesting. I too watch Mr Ramsey (almost daily) and wish I had known of him 20 years ago. But I have caught up now and its a great position to be in. Good luck with clearing your remaining debt, it will be so worth it and very satisfying in the end. :-)
True but you do need it if you need to finance. Or you need it to take advantage of credit card sign up bonuses.
I really don't understand what credit score is. Don't have that system where I live.
+ Andreas Vannfält In America, a credit score is how likely you can afford to take on debt and how reliable that you will pay back the debt + interest. The higher your number the better. There is some equation that adjusts to you. For example, for someone, a $500 loan is a lot of money but someone else may be able to take on a million dollar loan.
Yes, what Keep America Great says. Companies look at your credit score to see how reliable you are so they can offer your a loan to a car or house.
Ty
You're welcome!
Wow beat, What the h3ll its 95 dollars didnt you say you make a thousend dollars a week.
Nope, didn't say that. But $95 is significant.