Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!


Posted in Credit Cards
Profile Image

Question By

0 Contributions
0 People Helped
keep small cards open and unused or close them down, which is better for credit building.
With a few credit cards issued through small companies with low limits but don't use any of them. I want to fix my credit and don't know if its better to close them and get one better card or keep them open as long as they don't get marked as inactive and get better rating for more usable credit.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
227 Contributions
97 People Helped

leave old accounts

if they have significant history, leave them open! part of your score factors in age of accounts, so if you close older accounts just to open new ones,your scores will drop gauranteed.  if you want to help your credit, charge something small on those cards, and pay them off! keep your credit usage LOW, like under 10% of your total credit. scores like payments over TIME, so using them and sending in full payments every month helps. keep in mind depending on when you pay them off will dictate what balanace is reported to the CRAs. the balance at the time of your "closing statement" is the amount that's reported, so in fact it's possible to use your credit cards every month, and have a zero balnace reported with payment history. this is the best of both worlds, you get credit for making payment, with zero credit utilitzation!!! 

Top Contributor

Reply by

2207 Contributions
3949 People Helped

In fact, Paying the balance before the card is reported each month can work against you.  since there is a 0 balance each month its as if you never used the card at all and can lower you score in the long run.  Better scores happen when you use the card, let the balance be reported, then pay the balance due and let it report 0 the next month.  

So ideally you would use any card once every 2 months letting it report, then paying the balance,  then let it report again at 0. 

I have a few cards in my name,  Any card with a balance is put away and not used again until it has reported a 0 balance. I put my cards into a roitation so that I have only a couple of cards in my wallet at any given time.  I use each for a month then put them away and use a couple of other cards.  Of the cards i use, one will be for Gas and Groceries the other will be for all other purchases.  Cards with Automatic monthly reccurring charges are never in my wallet.

Thats the senerio that would improve your credit the most in the least amount of time. 

Good luck 

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.


Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.