I almost have a credit card paid off, should I close it or is it better for my credit to keep it open?

Question

I only have one other card and my car payment. as far as what would show on my credit.

Answer 1

Owning a bunch of credit cards just isn't cool any more. Smart folks are unloading their excess plastic, keeping only one for convenience, and paying the balance in full each month. But you can't just unload those excess cards: You have to know the game, or you could hurt your credit rating.

Getting rid of credit cards the smart way
Once your account has a zero balance, you're ready to start the process. It's important to know that the credit card company reports the account closing to the credit reporting agencies, not you, and they have two ways of doing it:

1. "Closed at customer's request" -- This tells the credit reporting agency that you divorced the bank, the bank didn't divorce you; it's what you want on your report
2. "Closed by creditor" -- This tells the credit reporting agency that bank doesn't want your business any more; it's what you don't want on your report.

Closing a credit card account the smart way takes time, patience and organization. It is crucial to log every call you make. You want a record of exactly who said what and when, so you'll have the facts at your fingertips should there be a problem down the line.

Get a notebook and dedicate a separate page or two for each bank account. On the top of the page write the name of the bank, name on the account, account number and telephone number. Then make columns on each page with the headings "date," "time," "person talked to" and "comments."
For each bank, look for the customer service number on your monthly statement. If you can't find it there, get it by calling the toll-free information number: [phone]. Each time you find a number, write it in your notebook.
Call each bank; verbally confirm your zero balance, and verbally cancel your card. If you're a good customer, expect the customer service representative to dissuade you from doing so; you may be offered perks, such as a lower interest rate. Stand firm. Tell the rep you will send a letter to confirm the cancellation and ask for the name and address of the appropriate person to send it to. Lots of luck on the name -- but at least get the address. Record everything pertinent to the call in your log.
Write your letter to the bank. Make sure you include the account number and your name and address on the account. It wouldn't hurt to attach a copy of the last statement showing the zero balance, and the pertinent account information. Include in the letter: (1) please cancel my account (2) please notify the credit reporting agencies that the account was "closed at the customer's request." Make a copy of the letters and attachments for your files.
Mail the letters by certified mail with return receipt requested. When a return receipt comes in, staple it to the appropriate letter in your file and post the date received in your log.
A month after your last return receipt comes in, check your credit reports to make sure all accounts are reported as "closed at the customer's request." You can order copies of your credit report from the three major credit reporting agencies by mail, phone and online.
If the credit report is correct, you're done. If it's not, start all over again: Call the bank to report the mistake, request that they fix it and follow up with a certified, return-receipt letter.
Keep going until the job gets done.

Answer 2

Depends on some different factors, how long have you had the card, depending on if you have had it a long time, you may want to keep it on to show longevity. It's usually good to have SOME revolving credit. Since you have already paid it down, I would continue to make payments until you get it to zero, and cut the card up. If you don't have any type of membership fees, or maintenance fees, it could be a great way to help your score without costing you anything. Even with a zero balance, as long as the account is open, the issuer will still report to the credit bureaus, that the account is in good standing. Call your credit card company and find out if there are any fees, and if they close accounts if they are not used for a certain amount of time.

Answer 3

Keep it open but don't use it (or only use it once or twice a year) When you close an account, you lose all the history on that account. With only one other card and the car payment, that's going to lower your score.

Answer 4

I would say keep it - if you don't need it don't use it but this way it does show up that you have good credit and if you do use it pay it off in full when the bill comes in that really helps your credit - if you are worried about using it when not really needing it freeze it in a big hunk of ice - by the time you unfreeze it you might just be over the urge . hope this helps you

Answer 5

Unless the card has benefits for you, close it. Your score will jump by 20 points.

Your highest balance will appear on your credit report, with your actual balance as 0, so there is no sense in buying something small and paying it off. It will show that it was closed at customer's request, if you close it.

Answer 6

Keep it open.

Use it for little things and pay it off every month.

It will keep your credit score up.

It is better to use a credit card than to just have one with no balance.

Answer 7

Pay it off and close it. It's better to have one card. Your credit report looks at available money (i.e. your credit limit), and the more you have, the lower the score.

Answer 8

I would def keep it open, buying something small every month, and paying the balance every month as well. It looks good for your credit report!

Answer 9

I would cut the card up and keep the account open as long as it has no yearly fees

Answer 10

CLOSE THE CREDIT CARD ACCOUNT AND OPEN A DEBIT CARD ACCOUNT....WHEN YOU REACH SIX MONTHS OF BANK ACCOUNT MONEY.....GET A CREDIT CARD SO YOU WILL HAVE ADDITIONAL FUNDS, ETC.