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Question By
BreatheEz

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To close or not to close a certain credit card
Ok, so I have decent credit and only a couple credit cards that are unfortunately at about 87% usage. I have a credit line from a furniture store (RC Willey $800 line) that I have had opened since 12/1996. I think since then I have only used it three times and it's been sitting at a zero balance for years now. I live in a 1 bedroom apt so there really isn't much furniture I need regularly obviously, but I've been reading on some of the forums that I shouldn't close something like that since I've had it for so long, yet it also says that keeping it open and not using it is bad. What would you suggest about keeping it open or what-not? I really don't want to charge $300 or more on it just to keep making monthly payments but I also don't want it to be an anchor on my credit. Suggestions?

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Depends

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Some store cards aren't even reported monthly like bank credit cards are. Is it listed on your credit history? If so, I would leave it open assuming the age is higher than your average account age.

I didn't understand the $300 charge comment. Ideally you would post 1-9% of your credit card limits monthly. Posting $300 on a $800 limit will actually hurt your rating (very slight).

Reply by
BreatheEz

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$300 was just an arbitrary number, I only used that because nothing is cheap at that specific furniture store, it's the juggernaut here in Utah, overly high prices but they have the biggest selection.

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It really makes no difference

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An unused account, specially from a furniture store, really isn't going to affect your score.  Most Furniture stores don't report to the Credit reporting agencies any way. (Does it show up on your Credit Report?)  

The idea of closing accounts because they are inactive goes against most credit logic.  If anything, let it sit until the creditor closes it for lack of use.  They are the one that has to pay to report it. So some may not want inactive accounts.  In general though, never close any account that effects your available credit. Even if you no longer want to use it.  Credit cards should be used at least once a year.  I put my cards into a rotation so that i only use 1 card at a time for a month, then it goes to the bottom the pile, so to speak. 

Good luck 

Reply by
BreatheEz

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It does keep showing on my credit, but it's always been zero. Sounds like I should just keep it open regardless since its bee open about 20 years, thanks for your help

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