# Canceling A Credit Card



## Ag Driver (Dec 13, 2012)

Ok. I'm looking for some reassurance here. I am replacing my CIBC Dividend Visa with the Amazon.ca card for a couple reason.

1) CIBC is tiered, Amazon is straight cash
2) CIBC charges FX, Amazon does not

My cards are as follows:

MBNA Smart Cash MC -- Gas and Groceries at 2% up to $400, 1% there after capped at $1250, no fee
Amazon Visa -- All other spending, all USD purchases, 1% no cap or tiers, no FX, 2% amazon.ca, no fee 
Canadian Tire World MC -- Taxes, Hydro, Union Gas, no fee
_Future Card -- Amex Simply Cash -- 1.25%, no cap or tier, no fee_

I have a credit score of about 780-810. Though my CIBC card is my oldest card, as per equifax my oldest history is with my Rogers cell phone plan. I have a mortgage already and a loan for less than 10k, so I don't need or plan to use any more credit. I pay all of my bills in full at the end of every month and have had ZERO hits on my score in terms of missed payments, etc. 

What kind of a hit can I expect? How will this affect me? When can I see the hit cleared and my credit score restored.


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## cainvest (May 1, 2013)

I don't know about the credit score changes but, if you do decide to cancel it, can you post back exactly how much it changed your score?


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## Echo (Apr 1, 2011)

I spoke with someone from Equifax a few months ago about the impact that opening and closing accounts had on your credit score. He stressed that the way you manage your credit day-to-day has a much greater impact on your score than new inquiries or even closing accounts.

Here's the full interview - http://www.rewardscardscanada.com/how-a-credit-inquiry-affects-your-credit-score/

I wouldn't expect much of a negative impact, and even then if there is a 10% hit it should return to normal after you establish a responsible routine with your new products.


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## brad (May 22, 2009)

Echo said:


> I wouldn't expect much of a negative impact, and even then if there is a 10% hit it should return to normal after you establish a responsible routine with your new products.


+1. I've cancelled lots of credit cards over the years; your score will recover quickly. It's probably not a good idea to cancel a card a week or two before you apply for a car loan or a mortgage, but even then if you start with a high score cancelling a card is unlikely to drop you below the threshold for good credit. Dropping from 800 to 750, for example, would have no impact on your ability to get favourable terms or rates, assuming that any score of 720 or higher is considered "good credit."


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## Ag Driver (Dec 13, 2012)

cainvest said:


> I don't know about the credit score changes but, if you do decide to cancel it, can you post back exactly how much it changed your score?


I will advise of the difference between my score after my new card (I assume I take a hit with getting a new card) and the cancellation of my oldest card and let you know!

Thanks for the heads up. I think I will go ahead regardless and I won't be looking for credit until I renew my mortgage in 4 years.


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## dougboswell (Oct 25, 2010)

Each hard inquiry will drop your score by about 7 points. It is not only about hits, but about payments on time, utilization % etc that affects the score. Given what info you gave you will still have a really good score.


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## Ag Driver (Dec 13, 2012)

As promised:

Between closing my CIBC chequing account (about 20yrs of credit history), cancelling my CIBC dividend card (about 8 years of credit history) and getting my new Amazon Card, my score dropped 13 points.


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## brad (May 22, 2009)

Ag Driver said:


> As promised:
> 
> Between closing my CIBC chequing account (about 20yrs of credit history), cancelling my CIBC dividend card (about 8 years of credit history) and getting my new Amazon Card, my score dropped 13 points.


Okay, but does it matter? If your score was high, a drop of 13 points probably makes no difference at all. If on the other hand you were at 720 and it dropped you to 707 it could conceivably have an impact in terms of loan rates and other qualifications. But it should only be a temporary impact anyway.


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## Ag Driver (Dec 13, 2012)

No, it doesn't matter to me. I was curious in case it was "detrimental" to my credit history. This is simply not the case. As I stated in my first post: I have a mortgage already and a loan for less than 10k, so I don't need or plan to use any more credit.

13 points is negligible and I will not bat an eye in the future when it comes to cancelling a credit card.


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## cainvest (May 1, 2013)

Ag Driver said:


> As promised:
> 
> Between closing my CIBC chequing account (about 20yrs of credit history), cancelling my CIBC dividend card (about 8 years of credit history) and getting my new Amazon Card, my score dropped 13 points.


Thanks for posting the real world numbers. Its surpising to see how little it dropped given so many worry over cancelling a card and what it'll do to their score.


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## Ag Driver (Dec 13, 2012)

The fear mongering must derive from the credit card companies. CIBC made it very clear, a number of times, that cancelling my credit card will seriously affect my credit rating and I could have difficulty getting loans in the future. 

If someone was ignorant to the facts, I can see how one would stop what they were doing and hang up the phone in fear. Unethical crooks....


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## glenzacher (Aug 13, 2014)

If you don' t know what is your credit score, then you should consult a financial advisor, they will guide you proper manner


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## Echo (Apr 1, 2011)

Thanks for following up on this, Ag Driver. As you said, 13 points is nothing in the grand scheme of things, and your credit score only matters if you plan on borrowing in the near future anyway.


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