Credit card advice please...?

Question

I have 0 balance on a credit card with $2000 limit, the interest rate is very high. Whats better for my credit score and history to close this account down or to keep the card and just not use it?

Answer 1

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Answer 2

Definately do not close your acct. Doing that will bring your FICO score down. Just holding the card, and not spending anything isn't improving your credit score either, unfortunantely. The only thing that will boost your credit at this point is to spend modestly on the card, and pay the monthly bill ON TIME. I would suggest paying a little bit more than the minimum payment, to show responsibilty. Don't pay the whole balance off though, because you won't be establishing a credit history.

Answer 3

If you want to have a card for emergencies then keep it. $2000 isn't too high of a limit, so it probably won't affect your credit score too much. Even if you don't have a balance, they do consider it in your score though. If you are trying to buy a house or something, you may want to close it if your credit score is borderline.

Answer 4

Keep it. Charge a very small amount on it every month, and pay it off each month. This will bring your credit score up. Also, the longer you have a credit card, the more points it gives you on your credit score.

Answer 5

Use it for small purchases and pay the entire balance every month. This way you will help build your credit and avoid paying the high APR. Also, as you build your credit you will qualify for lower interest rates. This approach requires a great deal of discipline. I am not so good at this myself. Be careful. Debt happens easily and it can get overwhelming.

Answer 6

Have you considered asking the credit card company to give you a lower interest rate? Most companies will give you one if you ask for it.

I think it would be better to keep it. Just charge a tiny amount each month and pay it off in full each month. It's good to show that you're making regular payments on your credit report.

Answer 7

You can keep the card for emergencies. Best way I would recommend is to pay your full dues before the due date which will help in your credit report.

There is no harm keeping this card and not using it especially if there is no annual fee.

Also if you want to buy something and if you can pay by cash then pay it by the card and make sure you use the cash to pay off the bill before the due date.

Answer 8

I used to sell credit cards and I think it's sad how youngsters these days just want to get a card to show off. There is a difference between being able to qualify for a card and being able to afford one. If you find yourself in debt, it likely means that you cannot afford one given current financial status. You are over-spending. Cut up the card. Pay your debt. Do not apply for a credit card until you can truly afford one.

Answer 9

It's not a bad thing to have a credit card - just in case (and if you pay in full at the end of the month. But if you find one with a lower interest somewhere, go for it (and drop the first one, of course.

Answer 10

You won't get charged anything if you keep the card (unless there is an annual fee). I would keep it because it looks good on your Credit report that the difference in what you owe compared to the balance is great. Also, the longer you keep it open that looks good on the report as well. THey like to see history!

Answer 11

Close the account and never use credit cards again... That is just my opinion. I hate them and I think that if I do not have the money for something I don't really need it.