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blknite26

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paying off credit cards and closing them
have 8 credit cards to payoff. 2 of the charge a $6 monthly fee however they are my lowest int cards(9.9%).once a card is paid off i will close them..Will this hurt my credit score and should i keep the lowest 2 even though i pay $72 a yr just to have them

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Initially closing them will not hurt your credit score unless the closure increases your utilization by a substantial amount.

I would personally close the ones that cost money to have, and leave open the ones that don't.  The reason is that closing a line of credit, while potentially not initially harmful, eventually has the possibility of lowering your credit history length and average age of accounts.

Furthermore, having more open credit lines and a larger credit limit can help utilization in the future if something does happen.  Example, you close all but 1 and thus have a $1000 credit line.  If for some reason you need to charge $1000 in an emergency, you now have 100% utilization, which looks bad.  However, if you close all but 4 and have a $4000 credit line, then your emergency charge of $1000 is only 25% utilization, which isn't out of the ordinary.

YMMV, it depends on your spread of cards, limits, and how old each one is.

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blknite26

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thank u very much. ur reply was very helpful

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