Should I close my credit card?

Question

OK, I have great credit and dont plan to buy anything major anytime soon. I have 5 credit cards, 2 having high interest rates. Should I close 2-3 credit cards to help my credit in the long run? I know it my score will go down at first, and thats ok, but a year and half from now is when I will want my score as high as possible. I just dont need 5 credit cards, I really only want 2 for emergencies. So should I forever keep them open or go ahead and close them?

Ok, so most say dont close them. So that means I will have these credit cards forever floating around and I'll never use them? I just dont see why I should just close them. I need more explanation people!

Answer 1

I know everyone will disagree with me but you should close them now if you are okay with your credit going down for a limited time. Everyone tells us don't close your card your credit will be hurt which is absolutely true. But it cost creditors money to keep your account open when you are not spending on it so guess what they have started closing out people's accounts when there is no activity on them. With letters saying to help you manage your finances we have closed your credit account due to no activity on this account in X number of years, months ect.

So what if in two years when you want to say buy a house or a car they decide to close that card and your credit will go down then anyway and probably at a bad time. Atleast right now you know you don't need anything credit wise and you know your credit will be hurt for awhile but atleast it is in YOUR control and not the Creditors.

Answer 2

With the higher rate of identity theft today, it's risky to leave an open account, even if you don't have the physical card.

I recommend closing all accounts you have paid off, and close the ones you pay off in the future. If you're 3-6 months away from the major financing, leave them alone.

It's sad how the credit score has become so popular in marketing, just like prescription drug ads.

Answer 3

Cancelling a credit card *should* have ZERO impact on your credit score. Apparently for some assinie reason it does.

Yes...close the cards you have no intent of every using again. Alternatively, cut them up and never use them again. Many credit companies will cancel the card (and your account - if the balance is "0") if you don't use it for a set time. You'd have to talk to the company that gives you the card.

Answer 4

I think it is a bad idea to keep credit cards that you don't use just for the sake of having them. You have to secure and monitor them. Just too many opportunities for problems.

I recommend you keep the two oldest major credit cards that don't have annual fees. If these aren't the best interest rate, still keep one. You don't want to close all your history.

Only keep store or gas charge cards if you have some specific reason.

Periodically charge something on the cards you keep and pay it off in full. If you do this every month, they will probably automatically increase your limit.

Answer 5

cut them up or put them in a bag of water and put them in a freezer. But don't close them, because it will keep your credit in good standing as long as they're open. The longer the lines of credit are open and in good standing, that will reflect positively on you as being able to sustain credit cards for a long time. It will improve your "creditworthiness" the longer you have them. What you can do, is on those higher rate cards, simply call and ask them to lower the interest rate. Most companies will lower them as long as you have been current for more than 6 months. the worst they will say is "NO"

Answer 6

Yes, close them all, don't use them. Save up for purchases. and PAY cash. I've played the credit card game for 30 years and got sick of it a few years ago..

Use your debit card for emergencies and have the cash in the bank.

Check out Dave Ramsey on a local radio station or on it website.
http://www.daveramsey.com

Answer 7

if you're okay with your score going down temporarily - close them out - I had a card with a 5000 limit, but the int rate was 29% - no balance and I hadn't used it in a year- I called them and asked them to lower the rate, but they wouldn't go down far enough to satisfy me, so I just told them to close it - no sense having a high limit card if I can't ever afford to use it because of the int rate - my score is back up over 710 and still can't get a decent rate ccard

Answer 8

last bills does influence your score-sturdy or undesirable no possible permit you be attentive to that. i won't be able to answer easily nor can maximum folk because of the fact that we don't paintings for FICO and FICO does not permit loose their magnificent formulation to the common public, yet i be attentive to that last bills will influence your score. sturdy or undesirable, lower back who's attentive to. maximum probable adversely if the bills are older. in case you're making plans to purchase i might seek for advice from a private loan broking provider or your economic company to make certain what they think of is the final element to do, yet remember they might't be attentive to for specific what is going to ensue the two, yet they might provide you comments. you assert you have no longer any balances on any enjoying cards and ideal score, why are you bored with looking after them-what's to guard if there's no stability? in case you experience you will be able to desire to close bills, i might advise last the maximum recent bills, because of the fact that that isn't influence your length of history. length of time is greater important than how many bills. as long as you have a sturdy blend of credit bills, ie credit, can charge, installment loans and revolving bills your history might nevertheless be stellar with an 820 score. different advice may be merely positioned them in a lock field till once you purchase your place after which you will close them devoid of it mattering plenty. ultimate of success!

Answer 9

Call the card companies and attempt to negotiate for a better rate...if they won't budge then dump 'em.

Good Luck!

Answer 10

destroy the cards but keep accounts with zero balances open it will boost your score