How Can I Drop My Credit Card?

Question

I WANT TO GET RID OF THIS CREDIT CARD I'VE HAD FOR A WHILE NOW. IT WAS MY FIRST. MY CREDIT LIMIT IS LIKE $300. (NOT CLOSE TO ENOUGH FOR AIRLINE TICKETS) I REQUESTED A CREDIT LINE INCREASE BUT WAS DENIED. WHILE OTHER CARD ARE AT A MIN. OF $2,500. HOW CAN I GET RID OF IT WITHOUT HURTING MY CREDIT SCORE. AND KEEPING IT OPEN WOULD EFFECT MY POTIENTIAL DEBT TO INCOME RATIO, CORRECT? IT HAS NO BALANCE.

Answer 1

If they don't charge an annual fee there is nothing wrong with keeping it open. Just don't use it or use it and pay it off every month. If they do charge a fee then it is okay to close it.

Since it has no balance then closing the $300 limit vs the $2500 will have minimal impact on your score. You are going from a $2800 total available to a $2500 total available. So if your total balance is $500 you are going from a 17% usage to a 20% useage. As long as this utilization is under 30% you are fine.

It may effect your score a bit because of credit age. But if it drops because of that, it will rise back up as you have the other cards longer.

Answer 2

Keep it open and just do not use it it increases your credit to debt ration and thus increases your credit score. if you close it your score will drop because of that ratio. The fact that you have had it for a few years is also good for your credit score

Answer 3

just cut it up! make sure you cut along the magnetic strip, and the numbers, so nobody can use it after