Does closing a credit card account hurt your credit in any way ?

Question

Got my first credit card the other day and was wondering whether to cancel it.

My current balance is 32 dollars but i plan to pay it in my next billing cycle.

Answer 1

IT WILL ONLY HURT YOUR CREDIT IF YOU TRY AND CLOSE WITH AN OUTSTANDING BALANCE. AS SOMEONE WHO KNOWS HOW TO ACHIEVE PERFECT CREDIT, I'D SAY KEEP THE CARD. ONLY CHARGE WHAT YOU CAN PAY OFF IN FULL WHEN YOUR MONTHLY STATEMENT COMES IN. KEEP THIS UP WITH EVERY CREDIT CARD YOU GET AND WHEN IT COMES TIME FOR YOU TO MAKE BIG PURCHASES LIKE A NEW CAR OR YOUR FIRST HOUSE YOU'LL BE APPROVED ON THE SPOT!!

Answer 2

Absoilutely do not close your credit card! And don't let it lie dormant.

Every couple of months charge something small on it and PAY THE BALANCE OFF. Even better, try paying basic bills like electricity / cable with your card.

The first trick is to USE the credit card. The second trick is NEVER EVER pay it late.

Trust me on this. 10 years ago I couldn't get a credit card and I had a travelling job so life was absolutely miserable.

Now my median score is 790, my low score is 750 and my highest is 830

Answer 3

In your case it would hurt your credit probably. Since it is your first card and you need to build up credit, you should keep it open even if you dont plan on using it. You need to build credit history.

If a person had too many open credit card accounts it can sometimes help to close 1 or 2 out, but in this case that would not apply to you.

Answer 4

it actually hurts your credit to close out credit cards. the best thing to do is to use it once and a while to build your credit but always pay it off right away to keep you in good credit. Also, after sometime the credit card company will try to raise your credit limit cuz your such a good person for paying your bill off and all that and keeping up with payments ....dont let them. If they try just say no thanks i like the limit im at. That way there arent any nasty temptations. Hope this helps.

Answer 5

Yes it does. This shows the person reviewing your credit for the next card, or even a house, that you are not responsible enough to handle to card and had to close it rather than cut it up. The next time a person looks at your credit score, they will think twice about offering you that low interest rate.

Answer 6

As long as you have good credit, it wont hurt you too much to have a few closed credit cards.

Plus if you know that keeping the card will tempt you too much and eventually you'll max it out, then its better to just close it while you're ahead. But if you know that wont be an issue, then you may as well keep it.

Actually, since this is your first card you should deffinitely keep it. If the credit limit is too tempting, lower it to a more reasonable limit.

Answer 7

no. but closing it without any use at all does not reflect anything on your credit report. if you want to close it, charge $5-10 on it, pay the bill when it arrivces and don't be late, then just cut it up. card can't be used, and you get a good credit mark for your credit report.
you get a credit record started this way, and still don't go into debt

Answer 8

Absolutely not. The only time a bank account will affect your credit is if the bank takes a loss on the account and reports it to the credit bureaus as either a collection or charge-off.

Answer 9

Yes it can hurt your credit. Try visiting Suze Orman's website. she is a great financial advisor. she has a kit I just ordered that will give you your credit report, score, and tell you exactly how to raise your score. I remember when I got my first credit card. If you think you can't be responsible with it, then maybe you should just shred it to keep yourself from using it. Good luck!

Answer 10

You have to build up your credit rating. Keep the card, charge very modestly, and pay almost in full monthly. Creditors do not like people who pay off the card each month (they receive no interest).