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msmargisfree

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should I close an account when I pay it off?

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we had a JCP account for over 20 years,  started using it about 2 years ago after not using it for at least 10 years. 

the longer your accounts are open the better your Average Age of Open Credit Lines  is.

I understand the Zales account story also, but that does not mean you need to close the account.   Heck they might have a deal for something like 50 to 100 dollar for a nice valentines gift next year.  you never know.   Having a Credit card does not mean you have to use it every month, 3 months or every year.  It means that a company has given you credit for x amount based on some credit information on you. 

I needed to get some tires for my wifes car last year,  could have paid cash if I wanted, but went for the Discount Tire Credit Card.   Paid it off with no intrest, but have the credit card on my credit report,   when I want to get new tires later this year for my car will get them at discount tire and charge them on the CC.   if I use it once every 2 years so be it.

Heck might go out this weekend and get a Zales CC as I would like to buy my wife something or collect some little items for the grandkids. ( oh shoot told the wife would not go for another CC until after summer , will have to wait now )

Hope this helps

Credit History takes time so does your Credit Score

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Most of the time you shouldn't. It depends on the terms of the account.

For example, my wife and I prior to our marriage, applied for a Zales card to buy our wedding bands, I was denied, but she was approved for a 3,500 limit. We spent 1,100 dollars, and the terms were if you spend a XX amount of dollars you get this XX amount of time interest free, after the promo time, you get hit with the interest, which is crazy high.

So after we pay down our card, we are considering closing it, due to the fact that it can only be used at a Zales store, and we don't want to have to buy jewelry every time to keep the account open, and also concurrently deal with a high interest rate.

So take in to account your terms of the account. More than likely its better to keep the account open, and in good standing. The longer your credit history is, the better your report looks to lenders.

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I thought having too many open accounts, even if they aren't being used, counts against you.

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