2006-07-01 06:56:29 · 8 answers · asked by 1Goodlife 1 in Business & Finance ➔ Personal Finance
it really depends on your credit. If, for example, your credit cards have high interest rates, I would pay them off and keep the lowest interest rates. If you have horrible credit, lots of late payments or are over the limit, I'd get rid of all of them but one and work on rebuilding your credit with only one card. (the lowest APR card of course!) The more cards and the more credit limit you have the worse it can be when banks and such look at your credit (they see it as you have a high risk of debt).
2006-07-01 07:04:34 · answer #1 · answered by leckscheid 3 · 0⤊ 1⤋
It's always better to pay them off, and leave the account open. Available credit adds to your credit score, and so does having accounts that have been opened for a long time. However, what most people don't realize is that the wise use of credit cards will increase your score faster than not using them. Having a bunch of cards that are open but you don't use really only helps a little.
If you are looking to raise your credit score, and you have the means, it always helps to use your cards and pay the entire balance off each month. If, for example, you have a 4000 credit card, (assuming you have the money to do this). Use it all month, up to maybe 1500 or 2000, then when you get your bill, pay it off completely. This will increase your score, and if you do this, your credit card companies will begin to increase your limit without asking them.
After all they make their money from you using the card not letting sit around to beef up your credit score.
2006-07-01 08:16:23 · answer #2 · answered by Craig O 2 · 0⤊ 0⤋
It depends on your Financial situation. It is always a good idea to pay off Credit cards that have a high interest rate first and then work on paying the lower interest cards. As previously advised do not close any account that you pay off. That will damage your credit score more than help your score.
2006-07-01 07:18:02 · answer #3 · answered by Anonymous · 0⤊ 0⤋
it is best to completely pay off the credit cards but DO NOT close them. Keep the credit line open and available for as long as possible. Credit scores are based on length of time and credit available, so keep the balances down (or even better zero) and your limit high.
2006-07-01 07:02:13 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Pay them off and close the accounts - it really doesn't hurt your score that much. Having a line of credit available will lower your score, too.
I have several accounts I paid off and closed and my score (as of today) is 795.
2006-07-01 16:29:01 · answer #5 · answered by homeschoolmom 5 · 0⤊ 0⤋
You want to demonstrate responsible prudent financial behavior. If you have ten cards, close eight. If you only have two, keep them open and only use them to pay current bills and pay them promptly and don't incur credit charges. Call your credit union and ask their advice. If you don't belong to a credit union, join one. Today they are not limited to certain memberships. Nearly anyone can find one to join. They offer great advantages.
2006-07-01 07:11:45 · answer #6 · answered by Superstar 5 · 0⤊ 0⤋
Either way, do not close the account once your balance is settled. The credit showing as extended to you (but not used) will show that you are responsible and will improve your score.
2006-07-01 06:59:37 · answer #7 · answered by Susie 2 · 0⤊ 0⤋
There is some good info here.
2006-07-01 07:04:13 · answer #8 · answered by Anonymous · 0⤊ 0⤋