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Question By
JHDNYC

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To close or not close out credit cards
I have 3 MC cards with Citibank and only using 1, the other 2 I do not use and has a 0 balance. If I close out the 2 cards not in use, will that help or hurt my credit report?

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Apparently you have not taken advantage of the credit knowledge provided on this site or you would already know that closing credit cards hurts your credit score.

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Reply by
mindjazz

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It will limit your credit availabilty if you close them and drop your score. Only close them if you're paying an annual fee. Otherwise look into cards which best suit your needs. Once approved with limits above or near the other credit cards, should you consider closing them.

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JHDNYC

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thank you!

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Don't Rush to Judgement

People are often very quick to say "NEVER" close a credit card.  This is simply not true 100% of the time.

If having credit cards are too tempting for you, and you can not control your use then you should limit the amount of credit cards you have.  High utilization, over limit, or missed/late payments will hurt your credit more than having this card will help it (most of the time). 

If your card has an annual fee, or other "maintenance" fees, then close the card if you have other cards that do not "cost" you money just to have them in your wallet.  Your score may take a hit if your age of credit drops too much, but this will be recovered with time.

If your card is what I call "free", no annual or maintenance fees, and you can control your use of it, then keep it open forever and ever.  The age of this card is only helping your credit.

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Reply by
rebuildingwoes

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I forgot to add MindJazz is correct, closing a card will lower you available credit.  So take that into consideration as well.  But, as I said, if you can not control your spending on the card it is financially prudent to close it.

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Despite what's been said, if still considering closing them? You can always ask Citi if they would allow you to move the limits from those two to one you want to keep, so you aren't lowering your available limits.

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In FICO score models? They use both open and closed accounts in calculating your age/avarage of credit. Closed account can last on your report for upto 10 years from when it's closed, so your age/average age of credit won't be affected by closed accounts for next 10 years. 

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