Why shouldn’t I cancel my old card after transferring... - Balance Transfers Questions


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Credit Card Applications » Questions » User Questions » Balance Transfers » Why shouldn’t I cancel my old card after transferring a balance?

Why shouldn’t I cancel my old card after transferring a balance?

Answered on | Updated on January 3rd, 2012
The content is accurate at the time of publication and is subject to change.

First off, you should understand that canceling a card won’t do anything to help improve your credit score. In fact, it may even hurt it instead. Because an important component in determining an individual’s credit score is their debt to available credit ratio, canceling a card can lower the amount of credit that you have available. Also, if it is a card that you have had for a long time, canceling it can essentially truncate your credit history.

If your old card carries an annual fee that the issuer won’t waive, then cancelling that card makes sense. Likewise, if you have reached the maximum amount of cards allowable by that issuer and you were intending to apply for a new card from that same issuer, you will likely be asked to close one of your existing open accounts. If that happens, request that your credit line be transferred to your new account. Most issuers can complete this service for you over the phone, so if you are closing one card issued by a certain company in order to open up a new card from the very same issuer, call and speak to a customer service representative about having your old limit added onto the limit of your new card.

Another reason to keep old accounts open is for the awards programs that are attached to them. If certain cards offer good perks such as a higher percentage of cash back for specific purchases, consider attaching a little sticker or post it note to the card outlining its particular rewards before tucking it into your wallet. If you have one card that offers bonus perks for every dollar spent at a restaurant, for example, then you will know which card to choose to settle the bill whenever you dine out. If you have multiple cards it can be easy to forget which is best used for what, so being organized and labeling them somehow is a good way to ensure you take the best advantage of everything your different cards have to offer.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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Intro APR on Balance Transfer: 0% 15 months on Balance Transfers

Ongoing APR on Balance Transfer: 15.49% - 25.49% (Variable)

Balance Transfer Fee: 3% of each balance transfer; $5 minimum.

Excellent, Good Credit

Intro APR on Balance Transfer: 0% Intro APR for 12 months

Ongoing APR on Balance Transfer: Variable APR of 14.99% - 24.99% will apply after the Introductory Period

Balance Transfer Fee: Either $10 or 4%, whichever is greater, will apply on each balance transfer and credit card check

Good, Excellent Credit
See Rates & Fees

Intro APR on Balance Transfer: 0% 18 months on Balance Transfers*

Ongoing APR on Balance Transfer: 15.99% - 25.99% (Variable)

Balance Transfer Fee: 3% of each balance transfer; $5 minimum.

Excellent, Good Credit

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