My oldest card has the lowest limit. Should I cancel or keep it?

[Teresita]

My oldest card has the lowest limit. I know that old cards with long history are good for my credit, but also that low limit is bad. So should I cancel or keep it?

[Lois]

Never close your oldest credit card!
If you close your oldest credit card your score will drop! Been there!

[Dawn]

YMMV
While it is true that as a general rule closing your oldest card results in a score drop, the actual number of points varies with your credit status and depends in a lot of factors:

• How many other cards you have, and for how long have you had them?
• How thick is your credit report (i.e. how long is your credit history)?
• What is the limit on the card you are closing, what would be your total utilization after the card is closed?

Length of credit accounts for only 15% of your FICO score, so if you have other cards for a long time as well you can expect a minor drop.

[Lisa G]

Does it have annual fee?
Never close your oldest card UNLESS it has annual fee. The few points your FICO gains don’t worth the annual fee.

[Alice]

What about CLI?
Have you considered asking for a credit limit increase? If you have the card for a long time I can’t see how they refuse.

[Sylvia]

Who said low limit is bad?
Why are you bothered with the card’s limit if you have other cards as well? Even if you max out that card – it doesn’t hurt your FICO. What counts is your TOTAL utilization, so if you other cards with higher limit there’s no reason for you to close the card.

As long as you’re total until is below 30% there’s no problem with FICO.

I’d keep the card. No reason for closing it unless it has annual fee.

[san]

Try a FICO simulator
Closing a credit card is a YMMV thing. I’d keep the card if I were you, but if you still want to cancel it you can use a FICO simulator to see what it will do to your score.

[Author]

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