Should I close my Canadian credit cards...

[Sam and Ben 2]

I've been in the US for a week now, awaiting an approved credit card in the mail from our bank and am wondering if I should close my Canadian credit cards now that I've got a US one secured.

I have three Canadian cards, none of which have balances or annual fees (as of yet). I have no intention of using those cards ever again. I have the cards themselves with me, so I'm not real worried about them being lost or stolen, but at the same time, I wonder about the impact of having unused, active accounts. I looked into all three and none of them charge inactivity fees, but can that change later on? How long will a credit card remain open without me using it? Silly as it sounds, I'm worried that en years down the line, I'll find out that I owe fees on new policies that took place on accounts I've long forgotten.

At the same time, I'm worried about closing the accounts. Is there a possibility of negatively impacting things I do here in the States if I destroy my cards and accounts there?

I've looked through all of the "things to do before you move" threads many times, and though many talk about paying off balances best as possible, etc, no one ever seems to mention what they actually do with those accounts, so... what did everyone do? Haha.

As always, help and input is greatly appreciated.

[Varba 0]

I've been in the US for a week now, awaiting an approved credit card in the mail from our bank and am wondering if I should close my Canadian credit cards now that I've got a US one secured.

I have three Canadian cards, none of which have balances or annual fees (as of yet). I have no intention of using those cards ever again. I have the cards themselves with me, so I'm not real worried about them being lost or stolen, but at the same time, I wonder about the impact of having unused, active accounts. I looked into all three and none of them charge inactivity fees, but can that change later on? How long will a credit card remain open without me using it? Silly as it sounds, I'm worried that en years down the line, I'll find out that I owe fees on new policies that took place on accounts I've long forgotten.

At the same time, I'm worried about closing the accounts. Is there a possibility of negatively impacting things I do here in the States if I destroy my cards and accounts there?

I've looked through all of the "things to do before you move" threads many times, and though many talk about paying off balances best as possible, etc, no one ever seems to mention what they actually do with those accounts, so... what did everyone do? Haha.

As always, help and input is greatly appreciated.

It's my understanding from a credit score standpoint it is very much better to leave the accounts open. Especially if you do something like put 5$ a month on them and pay them off on time.

You can get yourself in trouble as far as credit score and affect your future loans if you do not have a certain amount of debt - or at least active accounts. (Like I did.)

Just something to think about.

[Sam and Ben 2]

It's my understanding from a credit score standpoint it is very much better to leave the accounts open. Especially if you do something like put 5$ a month on them and pay them off on time.

You can get yourself in trouble as far as credit score and affect your future loans if you do not have a certain amount of debt - or at least active accounts. (Like I did.)

Just something to think about.

In regards to affecting my Canadian credit score or my US credit score?

[Udella&Wiz 325]

The Cdn banks or institutions may actually require that you close them if you're no longer a Cdn resident - you should check with each of them.

TD was iffy and let me use my parents address - I still have it 2 yrs later - frankly it's a card I've had for 15 yrs and I wasn't about to give it up. Extra peace of mind

Keep in mind - your credit score in Canada isn't really going to have much activity ever again unless you move back - if you want it to have some activity keep a card and use it occasionally. Will it be difficult to make a payment on that card from the US - you may wish to take that into consideration. You won't be doing loans in Canada or buying a house up in Canada (2 good reasons to worry about your credit score) so I doubt you have anything to be concerned about.

You will start fresh in the US with no credit score or history - so closing those Canadian cards does nothing to affect your US score. On rare occasions people have found a bank that is willing to check your Cdn score - but these are few and far between. (see all the threads about establishing credit).

Read up on how to establish credit in the US by perusing those threads

[trailmix 77]

It was a little different for us because we weren't sure if we wanted to stay in the U.S. or not, so we didn't cancel any of our cards, had the statements directed to an address here in Canada and just let them sit.

The only advantage I see to keeping at least one Canadian card is if you buy gifts online in Canada and want to use it that way, if you come up to visit and want to use it, rather than pay exchange fees and if you ever decide to move to Canada.

Yes closing cards can impact your credit negatively, but if you are going to close a couple of cards, now is the time to do it - when you have no plans of purchasing anything (like a house for instance) in Canada. When/if you decide to do that down the road, that negative impact will be gone.

I wouldn't worry too much about U.S. companies checking your Canadian credit score, short of you asking them to, I don't think it is really an issue (now you are in Florida and if you guys have plans to buy a house anytime in the near future and you want to use your excellent Canadian score - say through RBC down there - then I would not cancel the cards).

Edited January 4, 2010 by trailmix

[Krikit 1,164]

Here are my thoughts on the matter:

• Life has a strange way of making decisions for you. For this reason, I would never close a credit card account I didn't have to. It's always good to have a safety net for when things go wrong.
  
• If the terms of use for any credit card changes the financial institution is obligated to inform you. There won't be any surprises.
  
• Your credit card information is out there and there is always the possibility of abuse whether you retain the card or lose it. Case in point..... one of my inactive Canadian credit cards was used last October for some purchases in Georgia. I was in Canada at the time. I also had the credit card on my person; I had not lost it. Therefore, you should always ensure that your credit card company has your current contact information on file. The Canadian credit card companies are very effective at spotting fraudulent activity and reimbursing your account.
  
• Some US financial institutions will pull your Canadian credit report; some will not.
  

[Krikit 1,164]

Trailmix brings up a good point. I've noticed that some US credit card/bank card companies assess a service charge for out-of-country use. In other words, a lot of the US credit cards should not be used/are not intended for international purchases.

[MrsCat 6]

I kept my credit cards open and a bank account in Canada with money it in, to pay it off easier.

1) When I moved, I didn't want to feel dependent on Chris for everything. It took me a while to get a SSN, so I couldn't open a bank account here, to deposit the money that I had brought with me. I lost my CDN bank card too, so I only had my credit card for a few weeks while RBC was mailing one to my mom's house, then she mailing it onto me.

2) After reading VJ, I wasn't sure how long it would be until I could get a credit card in my name here in the USA. If I wanted to make buy plane tickets etc, I wanted to have something I could go online with.

That's just me though.

[Flames9_RN 358]

Trailmix brings up a good point. I've noticed that some US credit card/bank card companies assess a service charge for out-of-country use. In other words, a lot of the US credit cards should not be used/are not intended for international purchases.

Yep found that out the hard way a few yrs back! can't recall which CC it was, but they tacked on a hefty surcharge for using it in Canada!! Not all do, so best to call them!

[raymaga 25]

I kept one Canadian bank account and credit card when I moved to the US. I informed them of my new address and told them I would be living in the US.

I use my Canadian credit card whenever I travel to Canada to avoid the fees I get charged when I used my US debit card.

The only problem I have encountered is that I cannot pay my Canadian credit card using online banking from my US bank account. I have to mail a check to my Canadian credit card to make a payment.

[lgg 2]

Good thread, guys.

I am actually planning on keeping one of my Canadian bank accounts active and it happens to contain both my credit cards which I will keep active as well. This way, while i'm waiting to develop credit in the US, I still have the means about me in case of an emergency of something like that. Plus, I don't think it's a bad idea to keep an active credit rating in Canada as well, no?

I guess the only problem would be, how to get money into that Canadian account and such? I don't think it's insurmountable and this thread will be of use to many of us I'm sure. But I am of the mindset that keeping my Canadian cards is NOT a bad idea and I would very much like to do so.

PS

I also called my Bank, CIBC and they don't have a problem with my having a US address either so...

Edited January 4, 2010 by lgg

[Flames9_RN 358]

I kept one Canadian bank account and credit card when I moved to the US. I informed them of my new address and told them I would be living in the US.

I use my Canadian credit card whenever I travel to Canada to avoid the fees I get charged when I used my US debit card.

The only problem I have encountered is that I cannot pay my Canadian credit card using online banking from my US bank account. I have to mail a check to my Canadian credit card to make a payment.

thats when Customhouse.com comes in handy. I tx $$ back and forth with ease.

Presidents choice does not allow it--but i just use my parents addy. I keep very little in the acct, like less than $1.

[Rhiannercakes 14]

I closed my bank account but my credit card's still around.

I'm unsure if I want to cancel it or not, I have no plans to use it here, nor in Canada. I was probably going to wait until I got an American credit card, and I dont really want to have to have it if it still proves I have domicile in Canada.

Dont want to file taxes if I dont need to.

[trailmix 77]

Having 1 Canadian credit card won't affect your Canadian residency - no worries there.

[Rhiannercakes 14]

Having 1 Canadian credit card won't affect your Canadian residency - no worries there.

Okay, that's good to know.

I'll just keep it open then, no yearly fees.