I have clothing store credit card at a place I will not shop at anymore. Should I keep the card, or close it?

Question

I applied about 9 months ago. If I know I won't use it, what is the best thing to do for my credit score?

Answer 1

While it would continue to help your credit if you keep it open, you would have to use it at least once a year to keep it from being closed for non use. You wouldn't have to make a large charge, even something as cheap as a pair of socks will keep them from closing it.

But if you definately are not going to use it again, if you have other available credit that will help with the hit of closing that card, you might go ahead and close it.

You will see a score drop from closing it, how much depends on the rest of your credit.

Also, a couple of poster claimed (mistakenly) that having it open will hurt your credit. Available credit "is not" debt. And will not hurt your credit.

If you don't have any other store cards, I would suggest replacing the card with a card from a store that you do shop at "before" you close it.

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Amanda H - The subject is store cards, not major credit cards.
And yes, "all" store cards do close from inactivity.
How long before the card is closed depends on the store.
Some will close cards within 4 to 6 months with no activity, others may go one year (or more) before closing them.

Normally I usually tell people not to close accounts, unless they have to pay fees etc. But since chica bonita said she was not going to use it, it would look better for her credit if the credit report says closed by consumer, not reported as closed by credit granter.

Answer 2

Wow, people here always answers questions and they're wrong!!

1) A card is NOT closed for non-use, unless this particular store has some weird clause in the contract. I've had a visa open since I was 18 (5 years ago) that i haven't charged on since like, 2002. I keep it open becuase its one of my oldest accounts, and so it helps my score.-- okay,i must add that perhaps SOME cards do get closed, since someone else chimed in. Check your card agreement.

2) BANKS DO NOT CONSIDER 0 BALNCE CARDS! They look only at what your CURRENT Payments are. It will not be deducted from your overall loan amount if you do not have a balance on the card!

3) Closing the account CAN hurt your score. People don't realize this but you MUST have several accounts to really make positive strides with your score-- multiple "good" accounts-- ones that are shown as paid on time (and having no balance and thus no payment STILL counts as "on time), is the biggest chunk of your score. Having 6 GOOD accounts is better than having 1 good one. (Assuming you dont go waaaay overboard and have a lot of them, or that they aren't all CC's-- they like both installment and cc's. )

As long as they dont have annual fees that would cost you money, keep it open!

Answer 3

Close the account, most people don't realize but if you went to a financial institution to try and secure a loan they would ask for all the existing credit cards you have in your name. Your answer to this can easily be verified through the Credit Bureau so being untruthful doesn't help. The financial institution then adds up all the credit that is currently available to you and calculates what your monthly payments would be to keep all these accounts current if you maxed out all of them. Doesn't matter if you have or have not, they are looking at the "worse case" here. The amount that you could owe is then deducted from your income leaving you with what is available to cover any future debts. When it is all said and done that $2000 credit card at the retail store could be your downfall. Side bar to that, you run the risk of identity theft with a bunch of loose ends hanging about so if you don't need it or don't use it then close it.

Answer 4

Leave the account open as a positive mark on your credit rating, and allow the bank to close it due to inactivity. This has happened a number of times to credit accounts my wife and I had left inactive over the years, and none of those actions have had an adverse effect on our credit rating. So far.

Answer 5

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Answer 6

Leave it open to help build your credit score

Answer 7

Close it if you're not going to be using it. Your credit rating is affected by how much credit you have available.