I want to pay off and close all my credit cards, will this help my credit at all?
It is pretty bad right now.
2007-03-03 16:04:41 · 10 answers · asked by amb6487 2 in Business & Finance ➔ Credit
Everyone keeps saying to leave one open, however, I don't have a card that has a reasonable interest rate due to some bad decisions when I was younger. I really just want to close them all, why is this not a good idea?
2007-03-03 16:19:27 · update #1
It's a good idea to keep at least one open because the ones you'll get offers for will in the near future will likely have even higher interest rates than the ones you have now.
If you can keep at least one open (and you have the discipline not to spend up on it again), then you do at least give yourself a card that you can still use for purposes where only a credit card will do. For instance, if you wanted to rent a car, you MUST have a credit card. A debit card won't do and neither will cash.
2007-03-03 17:40:15 · answer #1 · answered by ISOintelligentlife 4 · 0⤊ 0⤋
Pay them off, but I'd leave them open. Reason being is that you close those accounts, you shorten your credit history. Keep them open, and use them in emergencies. Credit should be used as a tool. Some people have a misconception about credit and how it should be used. If you think about it, good credit is used to get a lot of necessities: a car, a house, even a job. The main difference between credit and debt is that with credit you're able to get the things you need, and debt is that needs and wants get confused and people start living outside their means. So, don't cut them up, put them up in a safe place and charge responsibly!
2007-03-03 16:21:29 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Yes it will help - go ahead and pay them all off and close the most recent ones you opened up. You want to keep the oldest credit cards and only charge small amounts to them each month -- always pay them off too. This way you start establishing a good credit record.
2007-03-03 16:12:57 · answer #3 · answered by Sirena 5 · 0⤊ 0⤋
Keep them open (at least the oldest ones). Closing them WILL NOT remve any negatives from your credit report. Having the older cards gives you a longer credit history which is a plus.
2007-03-04 01:49:51 · answer #4 · answered by Jason S 2 · 0⤊ 0⤋
I would definately pay all of them off and keep them open. Just don't use them unless you have to. That's a good way to keep building credit... by letting creditors know that you don't "need" to borrow money even though you can...?
2007-03-03 16:53:59 · answer #5 · answered by RealtorMelissa 2 · 0⤊ 0⤋
Invest the money some where safe where you can money pay off your interest and your Principal.
It all depends when you receive money...and if you invest it and double it in like 2 years atleast some of them. do it.
2007-03-03 16:26:18 · answer #6 · answered by Nir V 1 · 0⤊ 0⤋
Pay them all off, but keep one open.
2007-03-03 16:10:54 · answer #7 · answered by October 7 · 1⤊ 0⤋
It will help, but not overnight. You will want to leave one card open.
2007-03-03 16:13:26 · answer #8 · answered by Homeslice 4 · 0⤊ 0⤋
yes it will..get rid of the debt..this is a crucial step to bettering your credit! and economic goals.
2007-03-03 16:12:38 · answer #9 · answered by tara t 5 · 1⤊ 0⤋
It certainly wouldn't hurt, and you'd be free of those ridiculous interest rates.
Do it!!
2007-03-03 16:08:35 · answer #10 · answered by T J 6 · 2⤊ 0⤋