When to Cancel Credit Cards

Many have asked why I cancel credit cards. They wonder if it hurts my credit score. The short answer is yes but at some point, I care more about the potential new sign up bonuses than my credit score since it is high enough already. When you have a very high credit score, you have the luxury of cancelling credit cards. If you opt to only cancel the younger cards, it would not matter as much. It would also be best to cancel out cards that have a high annual fee as well. There are many reasons why you should cancel a card and it certainly is not for everyone. Let me explain the reasons clearer in the video.

Probably going everybody this is beat the bush today i’m going to talk about why i cancelled the cd thank you premier clarke as well as why i should cancel credit cards in general i’m going to share a tip on how you can get away with not paying an annual fee if the credit card charges you want before we get started don’t forget to subscribe to my channel and click

That bill icon next to the subscribe button so that you get new notification whenever i upload a brand new video i’ve had the city thank you premier card for a little less than two years now the first year is no annual fee the second year is $95 annual fee you have to know i wanted to keep this card because i haven’t spent my point yet as well as every dollar purchase

You have on travel to get three points so i called in before one year’s up and i said hey can you wave this fee and you just said oh no this is not something that they can do just as last week i called we cancelled this card because i did not want to pay the annual fee again so i called it said hey i want to cancel this card outright i didn’t even ask them hey can

You wave it or anything like that when you try to cancel a card they push you over to the retention specialist they call it and through them it is their job to try to retain you as much as they can number one thing they offered me right off the bat is i do not have to pay an annual fee this is what i wanted in the first year so it really is the way you put it if

You just go all i want to cancel it then they’re going to offer you something a lot better so if you’re looking to get the annual fee waiver you might have to play a game of chicken where you go no i want to cancel this cart outright and maybe they might call your bluff and just go okay yeah let’s cancel and then you’d be like oh darn it i really wonder this card

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So it’s really kind of like a game of poker you have to like have a really good bluff mine was not a bluff at all because i actually wanted to cancel this card and maybe the tone of my voice it sounded that way and so they know and that’s why they gave me all these offers the second thing they offered me is another 10,000 points bonus if i spend another $4,000

Over a period of three months now in my head when i signed up for this card i got a 50 thousand dollar bonus for a $4,000 cent over at 3 month period this is five times as much better and value to me is about $500 versus what they offer me here which is no annual fee and another $100 so to make this is still not good enough the third thing they mentioned is not a

Reward on top of that this is a negative offer where they said you cancel this card you cannot get it again so to me it’s a little bit like a threat and i don’t really enjoy this type of threat nor do i enjoy them remaining of this even one other thing that they really wanted to do is transfer the credit limit from this card onto my other citibank card which is a

City double cashback not to me i really did not want to transfer the credit limit because if i have a really high credit limit on the city double and if i ever go and try to get this card again maybe two years later then they’re going to go oh you have a pretty high limit already maybe they don’t want to issue this to me so my reasoning here is that i don’t want to

Have a lot of credit limit with city just so that when i get a new card oh go oh yeah you need a new more credit limit so then they would give me the card really easily so the main reason i’m cancelling this card is because of the annual fee if you have any credit cards that have an annual fee and you keep on paying it year after year this is a really high recurring

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Cost even if you’re able to pay for the annual fee it’s up through the bonuses it may not be worth it even in this case because if you get a brand new card you might get a really good sign up bonus whenever you pay an annual fee it’s like you gave them some money and you’re trying to call it back through the point system to me this is not a really good way to go

Because you don’t want to have someone else hold on to your money and you have to do something in order to get it back now to me the only reason you would ever pay an annual fee is you get way more benefits on this annual fee card then another credit card that gives you let’s say five percent ten percent cash back without an annual fee now from my experience for

Any credit card that charges an annual fee the second year you do not get any kind of signup bonuses and whenever i compare this to no annual fee credit cards that gets around 3% 5% 10% cash back on whatever categories is always not as advantageous therefore it’s better to just not get the annual fee credit card and just spend it on the free no annual fee credit

Cards so i can’t hold this card not because i hate it or i want to reduce my total credit limit it’s because i want to cancel it now and i want to let it sit for about two years and two years later if they still have this offer i’m going to go and sign up again get another $500 worth of bonus with 50,000 points on i don’t know 4000 dollars i know probably be a

Little different by then but i’m just sort of preparing my credit so that i can use it later on this way to get more points to turn more credit cards now why would you not cancel this credit card this credit card actually has three points per dollar that you spend on travel now this is on hotels flights car rentals and things like that so if i go traveling i would

Really prefer to have this card if this was a different credit card i might also keep this credit card for low balanced cancellation just because i cannot get really good rewards i can just still keep the credit card around and charge a really low amount on it and allow the credit card to low balance cancel it now if you’re interested in this method i’ll leave the

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Video on low balance cancellation over here just for reference citibank does not do low balance cancellation so that’s why this is another negative point on this credit card and why i am cancelling it now for most people that do not have a really really high credit score mine is about 835 out of 850 and it hovers around there even with all this activity where i’m

Getting credit cards i’m cancelling it and it stays around there all the time so for me i don’t really care if i cancel this and cut out the two years worth of credit history i don’t care if i reduce my photo credit limit here for people that have a lower credit score of say 740 envelope this may not be a good idea to go and cancel these credit cards because you

Will reduce your total credit limit by a lot or you do not want to wipe out your credit history in general it’s better to keep no annual fee credit cards for your longest credit history year after year you don’t want to keep on paying it every single year 10 years worth of history is 95 times 10 is $1,000 worth of annual fee so highly not recommended to keep any of

These guys around so thanks for watching i hope this makes things clear on why exactly i cancel my credit clark’s very specific reasons on doing so don’t forget to give me a like on this video comment down below let me know if you cancel your cards routinely as well if you’re interested in supporting my channel don’t forget to check out audible down in the video

Description below where you can get a free audiobook through this link and if you don’t like this audiobook or this service you can cancel it before the trial subscription ends and you don’t have to pay a thing and you can still keep the audiobook and still helping to fit this channel i also have a patreon over here where i get various perks at various contribution

Levels and as always don’t forget to subscribe to my channel click that bell icon next is a subscribe button so that we get new notification whenever i upload a new video thanks for watching

Transcribed from video
When to Cancel Credit Cards By BeatTheBush

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