Personal Finance

Will cancelling my credit card of 16 years effect my credit?

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  • Aug 4th, 2020 5:53 pm
[OP]
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Dec 16, 2012
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Barrie, ON

Will cancelling my credit card of 16 years effect my credit?

I've had 1 credit card ever since I was young (maybe 16 years?) Never missed a payment, but it was the TD Visa card where they don't give you much benefit (because I was younger at the time with new credit) so since then, I got a PC elite MasterCard because of the points and was thinking about getting the CT Triangle world elite because of some of the benefits like towing, etc.

So here's the issue I have, I went to cancel the TD Visa and the TD guy on the phone said that it would delete my credit history of all the years I had the card... Is this true?

Does it affect your rating? Should I just keep it in a drawer never used? What will happen if I cancel?
32 replies
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Dec 5, 2006
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It will show as close in the bureau and if no balance on it, score calculation will exclude this card

But on the other hand, close your longest card might impact your score, the question is what's your second longest card?

If you another card has longer than 5 years + in the bureau, I wouldn't worry.

Another thing to consider is if you don't use it, TD might not renew it once it's expired, so same impact as cancellation

But honestly, given current situation, banks all tightening their conditions, so do nothing is better for now except they charge your fee, now is not normal time
[OP]
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Dec 16, 2012
774 posts
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Barrie, ON
smartie wrote: It will show as close in the bureau and if no balance on it, score calculation will exclude this card

But on the other hand, close your longest card might impact your score, the question is what's your second longest card?

If you another card has longer than 5 years + in the bureau, I wouldn't worry.

Another thing to consider is if you don't use it, TD might not renew it once it's expired, so same impact as cancellation

But honestly, given current situation, banks all tightening their conditions, so do nothing is better for now except they charge your fee, now is not normal time
That's awesome thank you! I guess maybe I'll toss gas on it once a month then just to keep it active.

Thanks again for the info

Edit: sorry I didn't answer your question, my second longest card is maybe 8 years old? And it's the PC MasterCard
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Aug 18, 2005
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If your average age of accounts drops significantly, it will affect your score. It's happened to me.

The idea that it will "delete" your credit history of 16 years is just fear mongering. Your history with that card will remain on your EQ/TUC reports, but it won't be part of "average age of accounts" calculations.

My old Costco AmEx closed in 2015 is still on my credit report, showing as a closed account.

That said, I think people are too pre-occupied with fluctuations in their credit score, and let it consume too much of their brainspace. If you don't want or need the old card, get rid of it.
Last edited by Jucius Maximus on Jul 27th, 2020 1:26 pm, edited 2 times in total.
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[OP]
Sr. Member
User avatar
Dec 16, 2012
774 posts
500 upvotes
Barrie, ON
Jucius Maximus wrote: If your average age of accounts drops significantly, it will affect your score. It's happened to me.

The idea that it will "delete" your credit history of 16 years is just fear mongering. Your history with that card will remain on your EQ/TUC reports, but it won't be part of "average age of accounts" calculations.

My old Costo AmEx closed in 2015 is still on my credit report, showing as a closed account.

That said, I think people are too pre-occupied with fluctuations in their credit score, and let it preoccupy them too much. If you don't want or need the old card, get rid of it.
Ahh thanks good point, I'm not gonna lie it scared me a bit when the TD guy said that... I have a house with a mortgage, and a few vehicles that are all paid for so I don't need a crazy loan anytime soon (knock on wood) but still, they always talk about credit scores and put it on a pedestal so I don't want it going down...

Thanks for your input
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May 18, 2019
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If it doesn't have an annual fee just keep it because it does contribute to the average age of your accounts. If not then cancel it. This is what I did with my Capital One Gold Mastercard which had a $59 annual fee and no rewards. You will see a slight dip in your score but it will rebound within a year or so.
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Jucius Maximus wrote: If your average age of accounts drops significantly, it will affect your score. It's happened to me.

The idea that it will "delete" your credit history of 16 years is just fear mongering. Your history with that card will remain on your EQ/TUC reports, but it won't be part of "average age of accounts" calculations.

My old Costo AmEx closed in 2015 is still on my credit report, showing as a closed account.

That said, I think people are too pre-occupied with fluctuations in their credit score, and let it preoccupy them too much. If you don't want or need the old card, get rid of it.
You're wrong here, if he closes his oldest account, his AAoA will not drop until they fall off of his Equifax and TransUnion records. 7 years for Equifax and 15 years for TransUnion. Meaning he will have plenty of time to age other card accounts. So I wouldn't worry about it.
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Poutinesauce wrote: You're wrong here, if he closes his oldest account, his AAoA will not drop until they fall off of his Equifax and TransUnion records. 7 years for Equifax and 15 years for TransUnion. Meaning he will have plenty of time to age other card accounts. So I wouldn't worry about it.
Are you sure about this? My score dropped quite a lot when I closed my oldest account many years ago. (I closed it because of the annual fee.)
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Poutinesauce wrote: You're wrong here, if he closes his oldest account, his AAoA will not drop until they fall off of his Equifax and TransUnion records. 7 years for Equifax and 15 years for TransUnion. Meaning he will have plenty of time to age other card accounts. So I wouldn't worry about it.
Yes you are
Good standing status credit accounts closed by either the card holder or credit grantor can report up to 20 years for Trans Union and 10 years on Equifax.
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mikeymike1 wrote: Yes you are
Good standing status credit accounts closed by either the card holder or credit grantor can report up to 20 years for Trans Union and 10 years on Equifax.
They can report, but when bureau calculates oldest account age, would model include closed accounts age?
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smartie wrote: They can report, but when bureau calculates oldest account age, would model include closed accounts age?
No
The continued reporting of aged good standing closed accounts is a good thing. It lets us know you weren't a previous bankrupt.
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OP, just product switch to a card that has benefits that appeal to you. By PS(not closing your card and opening a new one), you will keep your history and age and extend it going forward.

See the TD credit cards discussion thread for more info.
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speaking of TD, Last week, I called to cancel my CB Visa since it's almost a year and I don't want to pay the annual fee. I already have my first class infinite attached to my AI account. Guess what the rep did? she closed my first class visa instead. the one I have for 10 years with $36K CL and also have my daughter as authorized user. Lucky me, I logged in on the weekend and noticed the mistake, the new rep was able to re-activate my 1st class visa and closed the correct one this time. The credit limit is the same (I just checked) and I just hope the card history didn't get wiped out because of their mistake
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mkl38s wrote: speaking of TD, Last week, I called to cancel my CB Visa since it's almost a year and I don't want to pay the annual fee. I already have my first class infinite attached to my AI account. Guess what the rep did? she closed my first class visa instead. the one I have for 10 years with $36K CL and also have my daughter as authorized user. Lucky me, I logged in on the weekend and noticed the mistake, the new rep was able to re-activate my 1st class visa and closed the correct one this time. The credit limit is the same (I just checked) and I just hope the card history didn't get wiped out because of their mistake
Question in general: are those reps working from home or still go to office?
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smartie wrote: Question in general: are those reps working from home or still go to office?
Probably still from home. The rep who fixed my issue needed to contact supervisor before corrected the other rep mistake
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Jucius Maximus wrote: Are you sure about this? My score dropped quite a lot when I closed my oldest account many years ago. (I closed it because of the annual fee.)
Yes, him (and others) are 100% sure about this.

The reason why yours dropped could be because of credit utilization ratio which accounts for 30% of your credit score. Note that length of credit, aka average age of your accounts, accounts for 15% of the score.

Just to confirm: if you cancel an old account, it will still show up on your credit profile for 6 years (Equifax) and it will still be used to calculate your average age of account (for 6 years). But it won't be used to calculate your credit utlization ratio.

To OP: feel free to cancel and not worry about it. But be aware that it will impact your credit utilization ratio which may end up decreasing your score.
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mikeymike1 wrote: No
The continued reporting of aged good standing closed accounts is a good thing. It lets us know you weren't a previous bankrupt.
But the good standing closed accounts are eventually dropped off. Right? What happens then?

For ex: I closed out (paid out) my car student loans and car loans. Eventually, they are dropped off and then fall off the report. What happens then? Are you able to go back in time and see that I paid off these loans?
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TuxedoBlack wrote: Yes, him (and others) are 100% sure about this.

The reason why yours dropped could be because of credit utilization ratio which accounts for 30% of your credit score. Note that length of credit, aka average age of your accounts, accounts for 15% of the score.

Just to confirm: if you cancel an old account, it will still show up on your credit profile for 6 years (Equifax) and it will still be used to calculate your average age of account (for 6 years). But it won't be used to calculate your credit utlization ratio.
Strange. Not consistent with what I observed because I 'merged' the credit limit from that card into a second card. (They were both RBC cards, and I kept only the 2nd card, which had no annual fee.)

Maybe things have changed but I don't have enough direct information to refute what you're saying.
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