# Credit card cancellation



## leeder (Jan 28, 2012)

Hello, I have a question in regards to credit card cancellation. I have an old TD Rebate Rewards VISA credit card that will expire in a few months. I have rarely used this card, and the card product doesn't exist anymore (TD now offers more MasterCard products, with an unattractive VISA card here and there). Knowing TD and most other credit card companies, when it expires, it'll issue a new card to me. It'll probably be some MasterCard, which I don't want. I already have a MasterCard, which I've used for 10+ years, and I typically like to keep one VISA and one MasterCard, so that if there's any odd reason a merchant doesn't accept a type of card, then I go with the other (very unlikely, but call me paranoid). If anything, when my existing VISA card expires, I prefer to get the CIBC Dividend VISA rather than another random TD card.

I have read in a number of websites that cancelling a card would negatively impact my credit score. Yet, if I don't cancel, my account would stay active and TD would send me some random new card. I'm just wondering if there's a good strategy in dealing with this situation, in which my credit score is 'minimally' affected.


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## rikk (May 28, 2012)

leeder said:


> ... I'm just wondering if there's a good strategy in dealing with this situation ...


Strategy ... get your new CIBC card, then cancel the old ... and that's got to be some urban legend about cancelling a card and credit rating. Reminds me, when I called to cancel my PCF card (switched to MBNA card) they offered me 10000 points not to, so I didn't. I did lower the amount to something like $5K though ... like you, I figured a backup card is a good idea ... nothing like trying to make a purchase and for some reason your card's been suspended.


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## carverman (Nov 8, 2010)

rikk said:


> Strategy ... get your new CIBC card, then cancel the old ... and that's got to be *some urban legend about cancelling a card and credit rating.* Reminds me, when I called to cancel my PCF card (switched to MBNA card) they offered me 10000 points not to, so I didn't. I did lower the amount to something like $5K though ... like you, I figured a backup card is a good idea ... nothing like trying to make a purchase and for some reason your card's been suspended.


+1..as long as there is no money owing on the credit card, and you don't pay the final balance.... would be the only way it could affect it...
....or they cancel it on you with a balance owing and it's not paid within the required time.


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## Plugging Along (Jan 3, 2011)

Cancelling your credit may have a negative impact IF it is your oldest card. Part of your credit score has to do with the length of time you have had credit.

If it is not you oldest, then you should be fine and it may increase your score a bit. Either way if your credit score is in good shape, it is marginal.


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## Woz (Sep 5, 2013)

The act of canceling your credit card won’t impact your credit rating. Applying for a new credit card will lower your credit score temporarily (same as any hard credit check). 

Also, if you have multiple credit cards, canceling an account will lower your available credit, increasing your credit utilization. If it’s high then this would impact your credit score.

The age of your oldest credit does impact your credit score. However, just because you cancel a credit card doesn't mean it disappears from your credit report, so even if it is your oldest credit card canceling it wouldn't impact your credit score.


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## leeder (Jan 28, 2012)

Thanks for the responses. The VISA isn't my oldest card. I've only had it for one 3-year period. But good to know my credit score wouldn't get impacted.


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## kcowan (Jul 1, 2010)

We are in a forced transition from CIBC Aerogold to TD Aerogold. We will see how it goes but I plan to get the Amazon.ca cash-back Visa because it does not charge for FX when we use it in Mexico for 6 months and that will save us $20 to $35 a month before cash-back.


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## heyjude (May 16, 2009)

kcowan said:


> We are in a forced transition from CIBC Aerogold to TD Aerogold. We will see how it goes but I plan to get the Amazon.ca cash-back Visa because it does not charge for FX when we use it in Mexico for 6 months and that will save us $20 to $35 a month before cash-back.


Ha ha, me too. I am taking the opportunity to ditch the high fee Aeroplan card for a no-fee cash back one. My most recent Aeroplan trip cost me a bundle in fees and I prefer Westjet anyhow.


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## Ziggy (May 16, 2011)

I have a TD Rebate Reward card that just expired. They replaced it with another TD Rebate Reward card that is good for another 2 years. So I'd say keep it.


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## james4beach (Nov 15, 2012)

Aeroplan is garbage. Once again our family is sitting on a huge number of points (approx $400 value) that we just can't apply to any flight, because the only routes shown are ridiculous red eye flights or 15 hour trips where a 4 hour trip should be possible. And the points are expiring this August, so I'm struggling to use them but it's very difficult.

For me, Aeroplan has lost all of its appeal. So why should I pick Air Canada over Westjet now? Give me a reason, Air Canada


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## heyjude (May 16, 2009)

james4beach said:


> Aeroplan is garbage. Once again our family is sitting on a huge number of points (approx $400 value) that we just can't apply to any flight, because the only routes shown are ridiculous red eye flights or 15 hour trips where a 4 hour trip should be possible.* And the points are expiring this August*, so I'm struggling to use them but it's very difficult.
> 
> For me, Aeroplan has lost all of its appeal. So why should I pick Air Canada over Westjet now? Give me a reason, Air Canada


FWIW, Aeroplan points no longer expire after 7 years. They got so much flak over that decision that they reversed it. All you have to do to keep them active is one transaction per year, which could be getting gas.


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## christinad (Apr 30, 2013)

I may be the odd person out here but if you have a mortgage I say why make any changes to your credit cards. I had a problem with my credit that stayed on my credit file for 7 years. That is a long time. You can save way more from having a high credit rating with your mortgage then any minor amounts of money you'd make switching credit cards. I don't trust Transunion after being unable to remove a wrongful report from my credit history.


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## Dibs (May 26, 2011)

leeder said:


> Knowing TD and most other credit card companies, when it expires, it'll issue a new card to me. It'll probably be some MasterCard, which I don't want.


I'm pretty sure they will renew your TD rebate rewards card, like Ziggy. They are just not issuing new cards to new people.


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## christinad (Apr 30, 2013)

Dibs said:


> I'm pretty sure they will renew your TD rebate rewards card, like Ziggy. They are just not issuing new cards to new people.


This article says new credit is only worth 10% of your score.

http://www.mymoneycoach.ca/credit_rating/what-is-credit-score.html


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