Citi Closed My Dividend Platinum Select Card
A couple of days ago, I received a letter from Citi, informing me that my Dividend Platinum Select card will be closed soon due to inactivity after a routine account review.
It’s true that I haven’t used that card for a long time. In fact, I didn’t even active that card since they decided to upgrade it to Dividend World MasterCard one and half years ago because I don’t like the rewards program that comes along with the new card and I don’t plan to use it again. So I don’t really care whether they close that card or keep it open. However, there are a couple of things I’d like to do before the account is officially shut down.
Impact on Credit Limit
From the credit report I obtained last weekend when I took advantage of the Equifax free credit watch offer, the card is shown with a $13,000 credit limit. When I closed some other cards before, I always asked if it’s possible to move the credit limit of the card being closed to other cards with the same issuer. The reason is, while I don’t need the card any more, I don’t want see a drop of my total credit limits which will cause an increase of the debt-to-credit ratio. If I can move the credit limit to other cards, the ratio will be the same even when one card is closed. From my experience, the card issuer usually has no problem reassign the credit limit to other cards for me.
Impact on Credit History
Whenever a card is closed, the length of the credit history will always affected, and the older the account, the bigger the impact. The original Citi Dividend card was opened in August 2004. That’s a little more than 4 years old, not that long. The Equifax credit report says my average account age is nearly seven years old. So closing the Dividend card won’t have any significant negative impact on my credit, especially given that I have a total of 18 revolving accounts.
The bad thing about credit cards being closed because of inactivities is that the cards are likely to be old cards. I have several cards that I opened a long time ago, but abandanded because I got cards with better rewards later. If the Dividend card is older than the average account age, I will definitely keep it open.
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