Is paying off your credit card and closing it a bad idea?

Question

I have 2 credit cards open at the moment...I just paid one off this week and I am thinking about closing it and only have one open. I've heard that paying off and closing a card is not good for your credit....can someone help me?

Answer 1

you can close it if you want, but it is a bit of a double edge sword, it will affect your credit rating if you close it, apparently just keep it open and use it but not to much and always pay it at the end of the month.

They creditor wants to see that the card is being used and payments are being made every month on time

Answer 2

Close it and dont obsess with the I love debt score. All you will get for your trouble is debt.

Pay as you go and live on less than you make and you will have money. If you have money. You will not need to borrow money. If you don't borrow money you will not need to worship at the alter of the almighty fico score.

You can get a home loan with manual underwriting. It's not a sub prime loan. Its a loan based on the person and not the score. The way it was done before the fico score. You can get the same low interest rates. That is if you dont have a bad score from not paying your bills.

Of course the bankers and their loyal followers are gonna tell you different.

Debt free is the way to be!

Answer 3

Pay it off but do not close it. Doing so will help your credit score

Answer 4

It doesn't hurt your credit, per se, but it can affect your score. If you're looking to raise your credit score, leave the account open with a 0 balance. It'll also help your debt-to-credit ratio.

Answer 5

Credit cards have become a necessity in society nowadays, you can't go anywhere without having to use one. That's why it's imperative to maintain a goodquestions are often being asked and yours is just another one.

Answer 6

best to keep but if the rate is too high maybe transfer to a lower rate card then close.

Answer 7

It'll be the best thing you'll do.