Hi, I’m looking for input on whether I should close my Chevron gas credit card that has a limit of $1,500. My other cards include a Capital One Quicksilver (7 years old), a Savor that’s only 3 months old, and an AMEX Blue Cash Everyday with a $2000 limit that I just got 2 weeks ago. Since the BCE offers 3% back on gas, I don’t see a reason to keep the Chevron card.
Would closing it impact my average credit age? Or should I just leave it open and toss it in a sock drawer? For reference, the Chevron card is a little over a year old and I currently have no balance on it.
EDIT: I forgot to mention that the Chevron card is a little over a year old.
Some might disagree, but I’d say just close it. It seems you’re asking because you prefer simplicity (avoiding redundant cards and managing an unused card online, checking if it has been used fraudulently, using it occasionally to keep it “alive”). If you have a replacement and know you won’t use it, go ahead and close it.
Accounts closed in good standing remain on your report for 10 years, and that clock starts when you close it. It would be unusual to think you won’t find a better card with more benefits in the next 10 years or that your financial needs won’t change.
What others said is true—if it has no annual fee, then keeping it open doesn’t hurt either. But it sounds like that’s not your goal based on your post. Congrats on your recent cards! Let those age for a year before applying for more to improve your credit profile.
@Fynn
Thank you for the reply. I’d rather not have a redundant card if I don’t need it. If keeping it helps my average age, I wouldn’t mind using it occasionally, but if it doesn’t, then closing it would ease my mind. I’m content with the cards I have now, so I can let them age for a year or so before applying for anything else.
@Devan
Your average age will still increase whether the card is open or closed. Keeping it open doesn’t add anything extra. The impact happens when it falls off your report after 10 years.
I would just keep it open. You can lock it so that no one can use it.
You didn’t mention the cards’ ages, but if it’s older compared to your other cards, it could have an effect. If it costs you nothing to keep, I would say keep it open. If there’s an annual fee, then close it. For your reference, Verizon, Sam’s Club, and Discover offer 5% cash back for gas. To keep the card active, just use it for something small once a month.
@Grayson
My bad for not mentioning. The Chevron card is just over a year old. I was curious about its impact on my average since I acquired it relatively recently.
Devan said:
@Grayson
My bad for not mentioning. The Chevron card is just over a year old. I was curious about its impact on my average since I acquired it relatively recently.
Yes, closing a newer account would lower your average age. From 25 months to 29 months!
Don’t close it. Just use it once a year.
Denim said:
Don’t close it. Just use it once a year.
I personally use mine 2-3 times a year. It’s tied for my oldest card (opened in 1986), which helps with my average age of accounts.
There’s almost never a reason to close a card with no annual fee. Just leave it open.