Should I close a card I'm not going to use?

Question

I was told that I needed some expensive dental work, so I had to apply for credit in order to finance it. It turns out that I didn't need the work done after all, so now I don't need the credit. Should I close my account, or will that look bad on my credit report. My other option is to leave it open until I need it one day. I already have 5 open credit cards an really don't want another. What should I do?

I'd hate to close it and 6 months later have to apply for it again if I end up needing dental work done.

Answer 1

I would definitely close it. Why keep it open and possibly use it, when you have so many others open? Even when you close it, it will still show up if someone pulls a credit report on you. But at least you could prove that it's closed.

Answer 2

Having multiple lines of revolving credit (accounts where you have ongoing payments every month) does affect your overall credit rating.
Usually, you don't get negative impact on your overall credit rating unless you default on those payments but my question would be, if you had 5 open lines of credit already, why did you need to apply for another line of credit to get the proposed dental work done?
Simply extending the available credit on one of the existing lines should have been suffice.
With regards to your question about closing a card then yes, I would suggest that you cancel that card.

A word to the wise however: It would appear that one who has extensive lines of credit may be over-extending ones ability to meet their credit obligations - Now, this is obviously none of my business and I do not wish to appear judgmental but, since you gave out the information regarding the state of your credit so freely, then I will return the favor with a little worldly advice:

Were I in the same situation as you (which I fully understand I am not), then I would be looking to seek credit counseling advice from a lawyer or independent financial adviser who is versed in these matters.
Do not be pulled into the Debt counselor's "1-800 We can cut your debt in half.com" trap because quite simply they cannot - they simply exacerbate your situation when you get them involved by bargaining the amount of interest that you will pay - this "bargaining power" is normally derived by taking your monthly payments from you and simply holding it for three months whilst they "negotiate" your situation - very not good in the long run and costs you additional money - normally there are "clauses" in their contract with you that state that should you prematurely cancel your debt repayment contract then all monies that you have paid them that have not yet been distributed to your creditors becomes their "administrative fees".
Having 2 or 3 open lines of credit is more than enough so if I were you I would want to look at canceling 2 of the 5 cards that you already have. Just my humble opinion is all.

Answer 3

When you have credit cards, even if you do not use them they reflect on your credit. A company will look at your credit line and see how much debt you could have if you used the cards. It is better to not have cards you are not going to use. Plus any card you have is a potential problem if someone gets the numbers and charges on the card unknown to you.

Answer 4

Do you have a favorable rate on this new credit card? Having five cards open is enough. I would recommend evaluating your current financial state and see if it makes sense. Are you responsible with your credit? Does this card have any free balance transfers or a special APR?

Answer 5

Credit is not good in my opinion.
But, if it not cost you an annual fee or anything, and, you already have it. May stick it back for an emergency.
I got away from credit cards years ago. Figure, if, I can not pay cash, I don't need it.

Answer 6

Keep it so it can show u have history and pay bills on time