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dinsureone

8 Contributions
42 People Helped
Is it bad to have credit cards that I don't use?

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Top Contributor
119 Contributions
32 People Helped

No, quite the contrary: it's GOOD to have credit cards you're not using. That's because they're just sitting there, adding to your total, overall available credit. That means that your debt-to-credit limit ratio is lower than it would be if you closed those accounts. In other words, say that you owe $1,000 on each of three credit cards, and you have two other cards you're not using. Assume that each of the five cards has a $3,000 limit; your total credit limit is $15,000 of which you're using $3,000. If you eliminated the two unused cards, your ratio would be 33%, but by keeping those unused cards your ratio would be only 20%--a big difference.

The only reason [I can think of] to close those accounts is if they're charging annual fees. Then you need to weigh if it's worth it to you to continue paying for cards you're not using.

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