Someone told me I'll hurt my credit if I close them and that I should use them every so often and pay them off ASAP. I feel if I have them laying around, I'll use them! Even if I destroy the cards themselves I still have most of the info to use them online, etc. So do I: close the accounts or leave them open and hope I don't get myself in over my head again?
2006-10-26 07:46:08 · 18 answers · asked by CluelessOne 5 in Business & Finance ➔ Credit
If you really have a problem and you are unable to get rid of the numbers/info, you should get rid of them. Closing the accounts will not hurt your credit more that getting into big debt and missing payments.
2006-10-26 07:48:12 · answer #1 · answered by cb 2 · 1⤊ 0⤋
There are so many different answers to your question. When I volunteered at Consumer Credit Counseling Service, one of the counslers told a customer that it would hurt the credit score if he would close all unused accounts. Another counsler told the same guy that it would raise the score.
I would think that you can close some accounts, but not all of them. Keep some open in case of emergencies. You never know when you're gonna need them. I would rather use an existing account for emergencies than apply for a new account.
That would cause an inquiry to appear in your credit report. Now that would hurt your score.
2006-10-26 08:59:28 · answer #2 · answered by Moe C 1 · 0⤊ 0⤋
Good for you! Wish I could say that. It will not hurt your credit to close these. In fact, you should get new offers because it is now statistically recorded that you pay off your debts. Keep one card open (the one with the best interest rate, of course) and close the others. You need a credit card for convenience if nothing else. Pay it off at the end of the month when your statement comes. But of course you probably know that already.
2006-10-26 07:49:19 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Staying out of debt is more important than a credit score, in my opinion. Atleast close the newest or the largest ones. Request a decrease in your limit on your oldest card(s) and keep those open. Preferably no more than $100 each!
Whats the point of having a good credit score if you can barely pay your bills?
2006-10-26 09:12:05 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I just heard a radio show on credit and this very question came up. The expert said to pay them off, but to keep the credit line open. It will boost your credit rating and still give you a large amount of credit.
Once paid off, it's good to hide or shred the cards so you won't be temped to use them, but don't close the accounts.
2006-10-26 07:55:08 · answer #5 · answered by Anonymous 7 · 2⤊ 0⤋
Good for you in paying them off. Yes if you close them it does hit your credit score. But... what is more important, the freedom of being debt free or the credit score.
Keep ONE open for emergencies, the one with the LOWEST credit and pay it off each month you use it.
Its all about self control but from the sounds of it you have your head on straight.
Remember, there is no freedom when you have debt.
Choose the right-
2006-10-26 07:56:03 · answer #6 · answered by SunValleyLife 4 · 1⤊ 0⤋
I've got some news for you. I just paid off a bunch of cards and the companies closed them for me. I didn't have a choice. Wait a few weeks to a month and see if you get a form letter stating that they are closing the accounts because of ??? They'll have a list of things.
Actually it's not a bad thing though. Don't take it personal. They are supposely looking out for you.
I now keep one Visa; one Mastercard and my discover card. That's plenty.
2006-10-26 07:59:41 · answer #7 · answered by Anonymous · 0⤊ 0⤋
I closed my accounts after I bought a house. If you need your credit score for a car or house don't do anything differently. You can cut up your cards like you said and make a conscious decision to eliminate those cards that are on file...like at amazon or paypal. It's hard to get out of debt. You should be proud of yourself! I think you're on the right track :)
2006-10-26 07:49:56 · answer #8 · answered by Michelle M 4 · 0⤊ 0⤋
Your credit will be better off if you keep one and use it wisely.
Close the unnecessary accounts. You may raise your credit by having more credit available, but you can ruin your finances again by maxing them out. For you, it will be a better plan to close them.
I see a lot of people suggesting you keep them open, but this is not just about your credit score. It is about what you have to do to keep yourself out of debt. It seems to me that you should close them. You can always open more later if you need to. Take steps to discourage your overspending now and later you can worry about the credit score.
2006-10-26 07:54:55 · answer #9 · answered by Phoenix, Wise Guru 7 · 1⤊ 0⤋
The credit counselors that you can trust say to keep the accounts open but DON'T USE THEM. Your credit score is partly composed of the amount of credit available to you (the max limit on your now empty cards) reckoned against the total amount that you owe.
Leave them open and cut up your cards.
2006-10-26 07:51:08 · answer #10 · answered by credo quia est absurdum 7 · 0⤊ 0⤋