I am paying my CC's off, is it better to close them right away or keep them open and not use them?

Answer 1

I have 2 credit cards, One is a gas and the other one I use to make reservation and major purchases. These 2 cards are paid off in full when I get the bill.
If you have a problem in controlling your spend habits, I suggest you close them off when you pay them off. This will remove any temptation you may have of charging.
Just keep a few for emergency use only.

Answer 2

Keep some, but not all. If you have a bunch of credit cards that are paid off but are still open, the credit bureaus that assign your score view that as a negative because you have alot of available credit. Because you could go out tomorrow and rack up a bunch of debt, that makes you more of a credit risk and your credit score will lower. keep 3 cards, and pay down the balances so they are less than half of the available amount. This will help keep your credit in good shape.

Answer 3

It depends on how many you have and the interest rates. Keep one major one for emergencies (I actually like to keep one Visa and one Mastercard, keep the ones with the lowest rates) and maybe one or two from the stores you go to most often (if the interest rates aren't too high)

For the others- close them. However, don't close them all at once. You credit score drops when you close accounts because you lose that payments and length-of-credit history. So I'd close one at a time, every few months.

Answer 4

You'll need to keep at least one major card (Visa, Mastercard, Discover) and you may want to keep a couple department stores cards that allow you discounts. After that, you should close them. A card closed by customer is much more favorable on your credit card rating than an unused card eventually closed by the creditor (credit card company).

Pay off the highest interest cards first (obviously), or consolidate them to the lowest interest account. Then close all that you don't need or want.

Answer 5

Keeping them open will improve your credit score, which is partially based on the ratio of credit used to credit available. When you close an account it decreases your credit available so it increases that ratio. For best credit scores, keep the ratio under 30% overall AND on each individual card.

There are services and software that can help you to monitor and optimize your credit score. Suze Orman, the personal finance guru, recommends this one - http://necessaryvirtues.com/recommends/suze

Answer 6

Keep them open and use them!!! Charge $20.00 per month and pay it when it's due! It shows on your credit report you are using them and paying them off every month!! If you have them active and don't use them then it will show inactive on your report. You need to show companies that you can pay your debt!! And by using your cards to a minimum then you are helping your credit score go up!!!

Answer 7

Depends on how many you have. If you're strong about not running them up, you should probably keep two accounts and have them open. It looks better for your credit score to have available credit that you don't use.

Answer 8

Keep them open and not use them. I just had my credit checked and this is what I was told by the counselor. That way you have credit available but not using it, it gives you more points on credit score.

Answer 9

Keep two open with the lowest interest rates. Use one once in awhile. Keep the other for extreme, life-threatening, end-of-the-world emergencies.

Answer 10

5 is the optimal number to have open. Make that zero if bill paying discipline is an issue for you.