Krazee
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It is recommended not to close unused credit cards, especially the ones with longer credit histories... Longer credit histories demonstate a lower risk of default than those with shorter credit histories. Check out the source listed below... |
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gingy gal
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definitely keep them open. The way your credit score is calculated is based on how much your you're able to borrow. So the more you're able to borrow and you don't, the higher your score will be. |
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Chillin-it
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Keep a couple open. Don't abuse them and make sure to pay balances off each month. Close the ones that you have no use for. You will never know when you may need them again. |
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gonecoastal
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Keep them open.. unless they are Capital One. It will show you have available credit and are not using it.. Looks good on the report and your score. Capital One does not report a Credit Limit, so they aren't much good for keeping. See if they will drop the annual fee , telling them if they don't you will close the account. I'm going through this now, trying to raise my credit score.. so that's why it's fresh on my mind. |
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Muga Wa Kabbz
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Closing out a credit card account or not using your credit card, which has zero balance both keep your credit score the same. The only benefit of having the credit card is that it makes it easier for financial institutions to offer you credit in future, when you need it. For someone to have given you a credit card, it shows that they considered you credit worthy and they could make a lot of cash from you. |
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Girls M
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Keep it open but just lower your spending limit just in-case your card is lost or stolen. When you go to buy a car or a house the bank wants to see a history of your credit. Having a credit card is the best way to show a good rating. Most banks won't give you a loan without a credit history. I would try and use them once a month and pay it off before the month is over to save on interest. |
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Bryan J
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In terms of a credit report, there is nothing bad about closing out a credit account. (Keeping them open does allow you to draw on the credit if you need it.)
On the other hand, if you keep them open with a zero balance, when you go for a future loan, they may be a concern as a possible debt load.
For example, if I have 4 credit cards, each with a $10,000 limit, then another lend knows that even though the balance is $0 today, it could go up to 4 * $10,000 = $40,000 if I do a lot of charging. |
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desertkoigal
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My advice, based on my experience, is to keep at least one or two open but not use them so that you will have a searchable, verifiable credit history should you ever need to borrow again (car loan, etc.) . Also, you need a major credit card for renting things like cars. You might consider closing most of them though because, If you have too many open, the credit agencies hold it against you (i.e. you have the potential to go out and max the cards our tomorrow). But you know your spending habits, if it will be too tempting to run up big bills if you keep them open, it might be safer to close the accounts (or freeze the cards into a big block of ice in your freezer ;-) |
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brandorules
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If you are paying off balances on multiple cards then you should absolutely close most of them out. This will show a future lender that you are not exposed to credit theft and high credit bills in the future. Creditors use the amount of credit at your disposal as a measuring stick before approving for a new loan. Keep one or two cards open, but keep them open with low limits. Say 5 thousand and 10 thousand each. |
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libbybaldwin29
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Do not close a card that has a long history...this could cause a huge drop in your credit score! Pay it off, but don't charge on it!
You can close out the recent cards...but I'd try to keep at least two longer history cards open...to utilize your credit score and get the best possible score you have to have at least one to two credit cards reporting...and a card with some hisory is great for your score...so be catious of closing those older cards! |
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singledad
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you don't say how many cards are involved, I'd keep one or two and close others. Having too many credit cards isn't good for credit report. |
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Flyby
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I read somewhere that in the short term it is best to leave it open. However, if you plan on using the cards then I would keep one of them. I met a guy not long ago who had an excellent credit rating and didn't have a single credit card. He told me that he never had a credit card and had no plans to do so. He owned real estate and only financed cars. You don't need a credit card to build credit. All you need to build your credit rating is a car, mortgage or other type of loan where you make regular monthly payments. More people get into financial trouble with credit cards than any other thing. |
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poison_ivy_red
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Keep it open. It looks much better on your credit and if someday you need it, they won't take points off your credit rating for getting a new account. |
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jule9104
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Closing your acct is a big no no...keep it open, when you close the acct it hurts your credit |
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Frank Castle
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Keep them open.
In fact, if you apply for more credit cards your credit score will go a lot higher (Just don't use them) |
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