We are in the process of paying all of our credit cards off. Four of them will be paid off this week. The interest rates aren't the best so I was wondering... Should I keep the accounts open with zero balance or call and close the accounts? What is better for my credit score?
Thanks!
2007-01-21 14:57:45 · 7 answers · asked by soonerfan0808 2 in Business & Finance ➔ Credit
Pay the credit cards off, keep them open, and put them away. Make sure you keep the balance at a zero. This will reflect on your credit score that you have credit and the credit limits. It will help more than hurt to keep them open.
The credit reports will show, (when companies do an inquiry on your credit history), that you have credit cards, the credit limit, and that the account is in good standing. It will help.
Good Luck.
2007-01-21 15:03:32 · answer #1 · answered by Anonymous · 3⤊ 0⤋
If you don't like the service that credit cards provide, by any means close them, it is your cards. RE: I am going to pay off my credit cards. Should I close the accounts or keep them open with a zero balance? I have been told in the past that closing the credit card account negatively effects your credit score.
2016-05-24 11:36:43 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Yes, I agree with the first answer. It will hurt your credit rating more to cancel the cards than to keep them with a zero balance. Just don't give in to the temptation to use them, and particularly if they have a high interest rate. Also, for the cards you have with lower interest rates, you can sometimes negotiate with the credit card company for an even lower rate than you currently have. Just call them and advise you've been thinking about cancelling your card with them and see if they will lower your rate. I've done this before.
2007-01-21 15:07:53 · answer #3 · answered by ♫ frosty ♫ 6 · 0⤊ 0⤋
If you plan on getting a loan for a home or car, pay them off and close them. Make sure you keep the a copy of the letter to close the card with, too. Open credit lines when you apply for new loans make you a higher credit risk because you have the ability to use them again.
Your credit score is based upon you paying monthly payments on time. If you leave a credit card open with a zero balance, it will be considered a dormant account over time.
Otherwise, pay them off and just keep one with the best rate open for emergencies.
2007-01-21 15:13:03 · answer #4 · answered by annazzz1966 6 · 0⤊ 5⤋
You might want to keep them open if there are no anual fees attached to them...or just keep one or two that have the better intrest rates and keep those balances at zero.
2007-01-21 15:07:20 · answer #5 · answered by Barbiq 6 · 0⤊ 0⤋
I agree totally with you. Borderline entrapment if you ask me. For what it is worth this might help. There is a free download software look at my profile for the url finance. The software gives you a perspective of where you are with your debts and gives a strategy on how to clear them. Its shareware software that I used with some success. It just might help you.
2007-01-21 16:39:35 · answer #6 · answered by Anonymous · 0⤊ 0⤋
pay them and keep them open. stash them in a drawer and forget about them. :)
2007-01-21 15:40:05 · answer #7 · answered by karen22 2 · 0⤊ 0⤋