Once I've paid off 3 of my four credit cards, will closing these 3 cards improve or worsen my credit score?

Question

my total debt is $3500 and currently, I have $20,000 available credit

Answer 1

Closing them will worsen your credit since your credit score is based on debt vs. available credit ratio and the length you have had the credit cards.
Leave them open and only use them if you can afford to pay them immediately.
Credit history is one of the major factors in establishing good credit.

Answer 2

All good answers so far, just need to combine the info into one useful blurb. OK, credit is evaluated by the BIG 3, in terms of potential debt, % of outstanding balance/max balance, and length of account history. This being said, the closing of the accounts is possibly good-possibly bad, depending on your particular situation. The first thing to consider is the length of account history for each. If all have been open for longer than 25% of your credit history (i.e. account open for 5 years and you have had credit period for 15 years) than no harm in closing, but not all of them at once. Next to consider (if all are paid off as you say) is the one with the highest credit limit. This will reduce your potential credit obligation. This is only if you must close one. I would recommend that you simply lower all of the credit limits to maybe half of what they currently are at. This would achieve the same effect for your score. Also alternate making a purchase on each card and paying off every month. Good luck!

Answer 3

Just went through this in buying my house. Don't close. It will worsen your credit. Keep them and if you can pay of the other and rotate using each monthly and pay off the bill as it comes in that would be the best for your credit. Never close a card once you have it. It can bring your credit score down by 100-150 points.

Answer 4

chop up that little plastic own loan shark, and close the account. on no account purchase on credit. Then, so what if your credit drops some factors while you're actually not paying for on credit? Why challenge approximately some thing you do not use? Use debit taking part in cards. forget the $six hundred month motor vehicle money - get what motor vehicle you may with funds. in case you surely could borrow for a house, get not extra residing house than you pays a minimum of 20% down, and below 25% of your take residing house pay in money for a optimum of 15 years.

Answer 5

depends how long you had the credit cards. the longer you have them the better your score is. Get rid of the newer ones. try paying them off over a few months so your paying record will look better.

Answer 6

Closing 3 at a time would make you look like you weren't aware of what you were getting into.Having 3 active account is always a good standing

Answer 7

its a fact that u should keep them open but dont use them... even if u use 20 dollars or 30 every so often and then pay it on time and pay more than ur minimum payment, it will raise your score ALOT!!!!!

Answer 8

Do not close the cards it will hurt your rating