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kiraluv86

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closing credit cards

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Top Contributor
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Not wise!!

Your credit score includes how much credit you have been granted.  You certainly do not have to use it all and I sure don't.  Since I joined this site a few years ago, I went from having $3500 in credit (at high interest, even) to $26,000 available.  It does take a bit of time and careful financial usage.  If you close credit cards, you remove whatever credit limits you have from your available credit.  The more credit you are granted, the lower your interest rate may be on major loans.  I just bought a car at 2.62% interest and that sure is a FIRST!!! 

If you don't want to use the credit cards, lock them ujp someplace safe.  Or, to keep them active) just see what regular monthly bills you have (insurance, phone, TV, utilities) that you write a check for or pay online, and have them charged to one or more credit cards, then pay those credit cards in full every month.  It will keep the cards active, keep the credit limits in your credit score calculations, and help your score.  You might consider re-reading the articles here to refresh your memory on credit.

Top Contributor
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Closing credit cards usually bad idea

If you have TOO MANY cards, you might consider closing one or two.  But choose wisely.  Don't close your oldest card (affects the age of your credit) and don't close one with the highest credit limit (will affect utilization if you carry balances on other cards).  If you don't carry balances on any cards, then the interest rate on the cards don't matter so don't use that in your decision.  If one of your many cards has low credit limit with a high annual fee, you might consider closing that one ONLY IF it is not your oldest card.

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