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should i close an account to stop paying monthly fees on an account i dont have a balance on
i paid off the balance on my credit card account went from 280.00 - 0 ever since i paid off my account i have to pay a 8.25 monthly fee just for having the card do not have any purchases on the card but they keep on charging interest ,should i close the account to avoid paying fees for a card i am not using but i dont want to ruin my credit

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Closing account

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Can not see paying $99/year for a credit card.  Score isn't everything.

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Closing an account on its own isn't a bad thing for your credit.
But there are a few things to watch out for.

Most important is the length of your credit history.

If the card you are closing is the one you have had the longest then closing it could negatively impact your score. especially if your next oldest one wasn't opened till way later.

For example, if this card you want to close was your oldest card and you opened it 5 yrs. ago. and the next oldest card you opened wasn't till only 1 yr. ago. then closing this card would result in your credit history being shortened from 5 yrs. of history to only 1!

that looks bad

if its not your oldest card, then its no big deal

some other things that closing a card can effect is your over all credit utilization. Which you should only use about 25% or less of at the end of each billing cycle.

for example, If you have two cards both with credit limits of 2000, then you have 4000 total credit available. And lets say you are using 1000 on one of the cards and the other (the one you want to close) you have no balance. This means you are using only 25% of your credit (the maximum recommended).

Now lets say you close this card. This would mean you only have $2000 total available credit. and now your credit utilization rate will shoot up to 50%! not good.

Another thing is total number of accounts open. The more credit lines you have open, but don't abuse, the better you look. If you have lots if credit cards and you could go on a spending spree anytime, but don't because you are a responsible borrower then that looks good. If you only have a few credit account, then you don't have as much temptation.

check out some of these articles here on Credit Karma:

Good luck, hope this helps,

Soul Hammond

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