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Posted in Credit Cards
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Question By
auntiejg

1 Contribution
3 People Helped
close credit cards?
I have 5 credit cards, 4 have zero balance. Should I close the accounts I'm not using. Credit score only 712. Thanks.

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Top Contributor
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3809 People Helped

No!!No!!No!!

Helpful to 29 out of 31 people

Keep the cards and use them once in a while to keep them active.  The amount of AVAILABLE credit on your credit score is very important!! If you closed those cards, you would lose the credit limits on the cards as available credit and your credit score will drop.

Don't believe it??  Run the credit simulator and find out now.  It'll show it instead of you finding out the hard way by closing the cards then finding your credit score takes a nose-dive and you can't undo the mistake.

Top Contributor
988 Contributions
550 People Helped
Most Helpful Response

Helpful to 14 out of 14 people

It's not just a matter of whether you're using a card when you're considering closing.  Utilization, as stated earlier, is a major factor to consider.  If your 5 cards each have a $1,000 limit and one has a $500 balance with the remaining 4 at $0 your utilization would be ($500+$0+$0+$0+$0) / ($1,000+$1,000+$1,000+$1,000+$1,000) or 10% which isn't bad.  Close those 4 cards with a $0 balance and your utilization would be $500/$1,000 = 50% which isn't good and is quite a bit over the 30% recommended max.  Always do the math to determine the impact on utilization before making such decisions.

Also consider the age of your accounts.  While closed accounts in good standing remain for 10 years, part of your score is based on average age of account and it helps to have old accounts.

1 Contribution
3 People Helped

won't close cards

Helpful to 3 out of 3 people

Thank you, that does make sense now.

2 Contributions
1 Person Helped

closing credit card

Helpful to 1 out of 1 people

I am being charged $39.00 per year to keep a card, I want to close the account, but I don't know if it will hurt my credit rating!

2 Contributions
0 People Helped

stasus says credit card closed should i still pay on it

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