Personal Finance

Which credit card should I cancel?

  • Last Updated:
  • Oct 3rd, 2014 3:37 pm
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[OP]
Sr. Member
Apr 21, 2012
945 posts
158 upvotes
Markham

Which credit card should I cancel?

1) RBC Mastercard cash back (Free chequing at RBC)
2) TD Rewards Card (Don't use)
3) MBNA Smart Cash (Grocery and Gasoline)
4) PC Financial Mastercard (Don't use)
5) Walmart Mastercard ($5 redeemption)
6) CIBC Mastercard Petro (Free Equifax alerts)
7) Amazon Chase Visa (No ForEx fee)

Although I pay off my balance every month, my credit score is still low (low 700). The primary reason is because I have way too much credits available to me. Aside from those credit cards, I also have 4 line of credits totally $100,000+.
13 replies
Deal Addict
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Sep 1, 2013
1419 posts
321 upvotes
New Tecumseth, ON
Close whatever you don't use.
[OP]
Sr. Member
Apr 21, 2012
945 posts
158 upvotes
Markham
Aethean wrote: Close whatever you don't use.
Those ones that I don't use are the oldest. Wouldn't that impact my credit score?
Deal Addict
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Oct 24, 2005
4462 posts
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Peterborough
Uranium101 wrote: Those ones that I don't use are the oldest. Wouldn't that impact my credit score?
It would.
Member
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Aug 9, 2014
368 posts
222 upvotes
Ottawa, ON
Of your unused cards keep at least your oldest one. Switch it to a no annual fee card if possible. If you have too much credit you could start with lowering limits on your unused cards.

BTW I wouldn't call a low 700 score low. If I recall a score of 700 and up will get you the best mortgage rate possible.
Uranium101 wrote: Those ones that I don't use are the oldest. Wouldn't that impact my credit score?
Deal Addict
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Sep 1, 2013
1419 posts
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New Tecumseth, ON
Afaik even if you cancel your oldest the account still shows on your report for 7 years or something like that (read that somewhere on rfd). Unless you want a mortgage or a loan in the near future just cancel what you don't use and don't worry about credit scores.
Deal Expert
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Feb 26, 2004
26999 posts
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TD Rewards. Don't know anyone who actually has one of those naymore.
Deal Addict
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Mar 1, 2010
1148 posts
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Toronto
DJ_Peanuts22 wrote: TD Rewards. Don't know anyone who actually has one of those naymore.
get some friends. socialize.
Deal Fanatic
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Nov 24, 2012
5560 posts
1713 upvotes
Space
7 credit cards? I would definetely cut down to 2-4 max. 1 main card ( Scotia cash back is probably best ) 1 gas card ( canadian tire or petro ) and 2 other cards ( Store cards for free financing ). This is my approach, in your case I would definetely cut 2) and 4) possibly 3) and 5) as well. Hope that helps
Deal Addict
Jan 30, 2012
1509 posts
838 upvotes
TORONTO
Uranium101 wrote: Although I pay off my balance every month, my credit score is still low (low 700). The primary reason is because I have way too much credits available to me.
That doesn't make sense - for the typical credit score, having credit available but not used doesn't reduce your score.

Some lenders won't like the fact that you have lots of credit available, but that's another story.
Deal Fanatic
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Apr 29, 2008
6307 posts
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Montreal
Average age of account has an impact on your score
Number of credit "hits" for the last 2-3 years has an impact.

I would think these factors have more impact on your score.

To have 4 LOC + 7 credit cards means many credit hits on your account.

My score was low 700s last year...
what I did:
1) I did setup recurring debit-credit in my LOC so they show transactions each month. They did not report "activity" when i did not use them at all.
2) I did close credit cards accounts that were open for promo / useless / etc... I have 4 left. I closed old ones, did not care.

My score is now in the mid-700s (about 50 points increase) about 1 year later, only had 1 credit hit this year on Equifax.
Penalty Box
Apr 16, 2012
3565 posts
685 upvotes
Greely
1. Ask to lower credit limit for the ones you don't use to something like $200-$500. Keep them open.

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