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GoGemma

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should i close my newest account
It has a $5000.00 credit line and i only have $1000.00 in credit card debt w additional $10,000. in total credit lines

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Do the math

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If your total credit is is $15,000 and your debt is $1000, closing a card with a limit of $5000 won't do much damage to your available credit. Think of it this way: you want to have 30% available to you in total across your cards and for each card. Assuming your debt is on one card with a limit of $10,000, you are only utilizing 10%. Your credit score will be fine as long as you don't charge more than $3000 on that card. 

It may significantly help your credit score to close the account if your other card is significantly older. For example, if your $10,000 limit card is 10 years old and you just opened the new card, the average age of credit is about 5 years. Raising that to 10 years by closing the account would imrprove your score. 

The hard inquiry will still be there either way, but another reason for closing the account is for better deals from that bank. When you call to close, they may try to make some offers to keep your business. And after you close, they may try harder to win you back. 

However, if you keep the account, you could just lock the card and let it sit. Eventually you may see an offer for a balance transfer deal or 0% on purchases for a period of time. Or you could just get a new card if you need it. If you only have two accounts, you may want to consider applying for more credit because more accounts improves your credit. Consider cards that have excellent rewards, such as Barclays Uber and American Express Preferred Blue.

Good question. Hope this helps!

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Reply by
jloes

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Up to you.  If you do close it, you hurt your available credit.  However, you will improve your AAOA (average age of accounts).  And, I am sure you still have a hard hit on inquiries, because I bet they had to pull a report to grant you that line of credit (Just a guess).

Crunch the numbers, educate yourself, and make a decision.  Hope this helped some.....

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Reply by
cv91915

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AAoA includes closed accounts, so closing an account has zero impact on AAoA.

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Closing your newest account will impact the overall age of your credit history the least. But - closing any credit card account will reduce the overall available credit as seen on your credit report, which momentarily drop your score. I would rather take a small, temporary hit to my credit than keep another credit card around - especially if that card has an annual fee. No annual fee? Just don't use it and preserve your available credit level. If you go long enough without using it the credit card company will close it due to inactivity anyway.

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to many cards

How can I get out of debt if I owe more then 10,000?  What would be the best way to get out from under my credit cards?

            Thank You

                           Pat

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Reply by
cv91915

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Make large payments.

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Reply by
Harry7900

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If you can get a good interest rate on a bill consolidation loan you could try that - any loan interest rate will be less than any credit card interest rate, plus you'll have a concrete payoff date - with credit cards (if you make only the minimum payment each month) you'll never get those things paid off! Just BE CAREFUL - if you take out a consolidation loan to pay those credit cards off, CANCEL THEM! The LAST thing you need is to take out a loan and pay them off only to rack them up again - now you have credit card AND loan debt! Use credit WISELY and don't dig yourself a hole so deep you can't get out! Good luck.

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Dont close it

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If u close the account your utilization rate goes up and credit card usage goes up and score goes down

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Pay off all debt

I will be reiting very soon, and have a nest egg I have built over 25 years averaging 150,000. My total debt, credit cards, kids student loans etc. I want to pay off all balances and close most of the cards. When I did the karma simulator based on the above my score would not change. What is the best thing to do so it will not hurt my score. I dont want any debt.

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Don't close all your accounts, that is not a good idea.  You don't know what the future holds and you may just need a credit card one day.  150K is not that much money (though I wish I had that) to retire on.  If you close all your cards, nothing will be reported and your scores will drop drastically.  Your score will not stay the same.   Pay off the balances like you want to and put the cards away, don't use them so this way you will maintain your good score.  

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Why would you close it? Is there a reason why you are asking this?

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fix it here

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I was thinking of applying for a bankruptcy form because i have no other options, I’m on a fixed income and cannot afford new things like auto loan, mortgage loan. My insurance premiums increased and the interest rate has hindered me from getting some benefits and securing a job I wish. I came across a comment of a man on a blog giving kudos to EXCELLENT REPAIRS for job well done in clearing off his debts and fixing his bad credit report. I took a risk by hiring him to fix my credit. I’m happy to tell you that my credit was fixed within 5-6 days by this exceptional credit expert. I was impressed by his work and that’s the reason I’m recommending him as well. You can reach him at yatesnovakovic @ g m a i l . c o m 

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