If I have 5 credit cards and owe on 3 of them is it best to cancel some of the cards once paid?

Question

I am getting ready to pay off my 3 credit cards. I have a total of 6 credit cards.( some I do not use)I am wondering if I should cancel any of the cards once they are paid off. I am trying to rebuild my credit. Here is another question. Once I have paid the credit cards soon after I am having a medical procedure which I was going to put on one of the credit cards. Or How do I apply for a 0 percent finance card? I have had some in the past.

Answer 1

If you are trying to rebuild your credit, closing the cards will take you in the opposite direction.

Like the first poster mentioned, do some reading for the 0% cards on the different credit companies sites.
You might also check out GEMB's CareCredit. That card does have 0% interest promo's when a certain amount is charged for medical procedures.

GEMB is generally a little more lenient in their approvals for that card then other 0% interest cards with other lenders.

Answer 2

Believe it or not, cancelling credit cards can sometimes be bad for your credit. Credit scores take into account how long you have had credit for and how much of your total available credit you are using. If you do not feel that you need all six credit cards, my advice would be to keep the 3 that you have had the longest. Long term, your credit will be better if you forget about trying to get new (low interest) cards every time you want to charge something big and concentrate on paying down the debt you have and then maintaining low monthly balances on fewer cards. -- Talk to your bank about a loan for the medical proceedure you need then pay it off with lower interest at a fixed interest rate and fixed term with no annual fees like credit cards have.

Answer 3

I think you should cancel them since you paid them off and especially if you don't plan on using them in the future! It has been recently said that having an open credit card looks good on your report rather than paying off cards and closing the accounts. Companies like to see not only past credit history but recent credit transactions/payments as well. Closing those store card accounts won't hurt your credit score! Those late payments did however so just get rid of the cards that get you in trouble! I think you are on the right track b/c you already intend to keep your Visa open and that is good enough to keep you having credit history! Plus the intrest is lower so it's the best card for you to keep! One extra tip= Make sure you don't go past the halfway charging limit on any card b/c that may make your score decrease. And if you are past half then just try to get it down to that point before using it again! I think you are very informed and are on the right track to fixing your credit dilema! Good Luck!

Answer 4

Canceling lots of credit cards all at once will raise a red flag on your credit report. I keep all of mine active by charging gas on them and then paying them off at the end of the month. I have also borrowed large amounts of cash and then given them the money back in a few months, incurring only the fees and interest. It seems like anytime I pay them off, I get a big credit line increase. I am at the point where I can buy a Navigator on a credit card @ 4% for life if I want.. (don't want, I'm not that dumb)

Answer 5

You mentioned that you had some cards in the past, are they still showing up on your credit reports, some will show no activity but the rest will show a balance due and how you pay, this is what creditors look at. I have 4 cards and put a small amount on each every month BUT I pay the balance off each month, I put plane tickets on one card, $972.00 but will pay it off at $100.00 each month and will put nothing on it until it is paid off, BTW my credit score was 728 as of tonight. The card that you put the procedure on DO NOT place any thing on the card until it is paid in full.

Answer 6

You have to have really super good credit to get the 0% interest. But do this, close all but 2 cards. One you use for "purchases" and the other for "emergencies" ( and not a sale at bloomingdales-LOL LOL). Try and get a personal loan from your bank or credit union. That way interest isn't compounded on top of interested, you'll pay one payment with the interested already calculated into it. Also, you can probably save on interest if you have the payments drafted out of a checking or a savings account.

Answer 7

Nope, it is better to pay them off and put them in a safe place (My friend puts these credit card in a jar and then into the freezer, so she has to have a waiting period before she can use, reduced her impulse buying) Wells Fargo and Bank of America both have 0% credit cards with no annual fees for people with very good credit. Hope this helps

Answer 8

Never close an account. Better to cut up the cards. Search for zero-percent cards. Start saving money, even if it is small. Everyone needs a cushion.

Answer 9

Yes, you don't need but one. Too many cause trouble.