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thatabramswoman

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which credit cards should i close
I have quite a few credit cards. I'd like to close some of them. I was thinking if I closed newer ones this would help my credit score. Is this true?

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Not Necessarily!

Helpful to 4 out of 4 people

It's a bit tricky, so here's an example:

Say you have 3 credit cards. Credit card 1 has a $500 balance and a $2000 credit limit. Credit card 2 is an unused card with a zero balance and a $3000 limit. Credit card 3 has a $1,500 balance and a $1,500 limit. In this scenario your credit utilization ratio looks like this:

Total balances = $2,000 ($500 + $1,500)
Total available credit = $6,500 ($2,000 + $3,000 + $1,500)

Credit utilization ratio = 30% (2,000 divided by 6,500)

Now, if you decide to close credit card 2 because it's an old card that you never use, your credit utilization ratio looks like this:

Total balances = $2,000 ($500 + $1,500)

Total available credit = $3,500 ($2,000 + $1,500)

Credit utilization ratio = 57% (2,000 divided by 3,500)

You can see that your utilization ratio rose from 30% to 57% by closing the unused credit card.

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Closing newer ones is better than older

Helpful to 3 out of 3 people

On this site it states, "One of the largest contributors to your credit score is credit history and the age of your oldest accounts. Closing your oldest credit card account will most likely have a negative effect on your credit score. So closing newer ones is better than older ones, but it might be ebtter to keep them all open.

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Keep em all open! Just cut them up

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I have found that to maintaine my high credit score I need to keep at least 21 accounts open. I paid off a card a long time ago and it finally closed on it's own. I lost a good 80 points! Then I grabbed a new credit card and did some consolidation and management now I'm back up in the 800's where I like it!

Cut up your old cards and just check in on them every now and then on the web to make sure nothing is being charged on it. If you get a new card that you aren't going to use keep it somwhere safe for emergencies, I have one just for that, and just leave it alone.

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