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- 07-10-2011, 05:41 PM #1
White Belt
- Join Date
- Jul 2011
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- 1
Closing a credit card and a credit margin
Hi everyone, this is my first time posting here and I have some questions about closing cards. I'm from Canada but things work pretty much the same as in the US IIRC
I'm currently 20 and I've had my first credit card 2 years ago when I was 18. (A $500 TD CashBack Visa). Last Summer I got a $5,000 Student Credit Margin from TD too. I almost got approval alone but I had to get both my parents sign because my history was too short (Score was high enough and I'm studying Engineering, the clerk was surprised it didn't pass).
1 month later I made my application for the Governement's student loan and discovered TD had drawn back from this program so I opened an account at Desjardin Credit Union. Since I'm an Engineering Student they gave me the "full service". I got a $5,000 Gold Visa CashBack free for two years (which I kinda regret taking, should have wait until the end of my degree since I have no need for a "gold" card right now).
When my semester ended I had a $1,800 balance on my marging. Now it's all paid off. Soon I'll be closing my TD marging to get one with Desjardin (My parent's won't have to sign with Desjardin, and rate is 4% rather than 4,5%)
I have't used my TD Visa since I got my gold one so I was thinking about closing it too. I've read that you should not close your first credit card because it can lower your score in the long run when it disappears. Would that hurt in my case?
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