I need help with my credit cards!?

Question

Should I close my very first credit card? I want to close it because they changed my APR and they added an annual fee last year and I just now noticed it because I don't use the card. I have no idea why they did this because I have great credit and my husband has excelllent credit. I've read about Capital One doing this to other people as well. Also, is it bad to close cards that you aren't using? We want to buy a house and we don't want to have too much available credit. How much is too much available? We have 2 AMEX, one with no limit and the other with a 10k limit, 2 Mastercards with 9k and 1 Visa 2k available. I also have 5 store cards. We only use 1-2 major cards at a time and we rotate so that they all get used. We have less than 4k total charged on the cards combined. I would close more of my store cards, but I've had those the longest. Would that hurt my credit score???

We plan on buying a house in December... no later than next March.

Answer 1

Close the card with the annual fee. Do it in writing and request written confirmation that it is closed.

Personally, I'd close some of those accounts especially the store cards. However, since those are your oldest cards, closing them would delete a lot of your history. Keep them open until after you buy the house.

Answer 2

Since you are going to be buying a home soon, keep all your cards open. This will help your credit score in two ways:

1. It will make your credit used / credit available ratio look better. Yes, having more available credit is a good thing and helps your score. Closing cards will make your ratio worse.

2. It will make your length of credit history better.

Both contribute to a higher FICO score.

What you might want to do with the card with the annual fee is call them up next time around and tell them you are canceling because you've got 4 other cards that don't charge you one and you don't want to pay for it. It's a good bet they'll waive it because it's harder to get a new customer than retain an old one.

Answer 3

Forget the credit score, you have a mess. Your score may be out of whack because there is to much open credit and because your ratio of used to available is off. You need to close most all the ones with no balance. I would keep one or two major cards and a department store card or two. I would get all the balances to 0 fast. Then pay on time each month. Never start a card with a annual fee, if an existing card gives you one, call and say eliminate it or I want the account CLOSED! They usually do it. When you try to close some of the department store cards they may even offer $20 coupon not to close it!

Answer 4

It depends on if you have other credit, and how many cards. There is more that one variable to any answer. Even if it drops your score a few points at first, you need to be able to choose the card that's best for you. If you are applying for a mortage in the very near future - don't do anything with your credit.
you can weed through this to help you decide:
http://www.creditcards.com/dos-and-donts.php
http://www.truecredit.com/help/learnCenter/creditScores/closingAccounts.jsp
.
If my card started charging a fee, I'd drop them like a hot potato and it's the only one I have.

Answer 5

Close the credit card that you do not use if it charges you an annual fee.

If you have good credit, and do not all of a sudden close all your cards, there will be minimal to zero impact to your credit score.

Did you say it is a Capital One card? Good luck closing the account. They are notorious for wearing you out to keep the card open. Stick to your guns and close out the card if you do not want it. They have to close your account at your request. (But, that will not stop them from putting in an effort to keep you on as a cardmember...)

Answer 6

I would normally say keep it open, until I heard that it was Capital One, the are the worst in the business and do not report you credit to debt ratio fairly as others do. Close it take the small hit for a month and stay away from them.

Answer 7

I have to agree close your Capitol One..they are one of the worst credit card compines out there .go to www.fixmyuglycredit.com they have GREAT tips and its all free.