I have several paid up credit cards I want to close out, how will this affect my credit score?
|
monicamellish wants to know:
I am working on paying off my credit cards because I am planning to retire in 3 to 5 years. Is it ok to close out these paid up cards all at one time or does it matter?
I am working on paying off my credit cards because I am planning to retire in 3 to 5 years. Is it ok to close out these paid up cards all at one time or does it matter?
Popular search terms:
Tagged with: Credit Cards • Credit Score
Filed under: True Credit
Like this post? Subscribe to my RSS feed and get loads more!
Keep them open! Closing them will take them off your credit report and will most likely drop your score. Just keep them open and cut up the cards if you don’t want to use them, or keep the cards in a safe place.
I had run up a lot of credit cards, so did my husband. We made the mistake of doing a debt consolidation loan to pay them all off. (dont do that, its the wrong move) I waited a year and then canceled all my cards, they told me it would ruin my credit by canceling. Thats a crock, they just want you to keep the card. Id cancel all but one, keep it for little things here and there and make sure you can pay that amount off at the end of the month. It wont hurt your credit canceling them though, it will show up as your request to cancel, on your credit info.
Btw… it doesnt help to have 50 credit cards open and none even being used. it will NOT hurt your score at all to cancel them, trust me.
They look at total credit available to you and then how much of that credit you used-Called debt to equity.
Keep them open but keep checking your balance online to be sure nobody has got your info and using the cards.
It depends on how many credit cards you have. If you have a number of them, then closing some will actually raise your score. Are you going to make a large purchase in the future, like a house, second home, or the like? Then definitely close some! Your total credit capability will go UP, and you will get a better rate on mortgage or car financing. You should have at least two left after closing the others.
Unfortunately it will hurt your credit if you close out your cards. If you leave them open there is a chance you can get your identity stolen. I say keep only the ones that matter to you the most open. Close the department store cards. You will feel safer in the end.
Your score is based in part on the percentage of your available credit you have used. Closing paid off cards reduces the amount of credit you have available to you and will therefore lower your credit score some. But that may not matter if your other balances are low (and you are still using less than 10% of your remaining available credit) and you won’t be applying for a mortgage anytime soon.
Here’s the reality. Open cards with no activity for years will lower your credit score. Close them. But here is the caveat, if you carry balances, then make sure that the balances are less than 25% of the available credit for all accounts that you do have open. If you are smart, and at your age you are smarter than most of the youngsters here, then you have no balances that carry over. If that is the case, it won’t hurt your score to close the accounts that you don’t use.
it depends on how many cc you have if you have like 10-15 yea close them out. Keep a few open tho. if you close a credit account the reduces your total available credit which could hurt your credit score. my advice keep 2-3 (keep the ones youve had the longest or provide the better deal–points air miles etc) and then rest cancel them—its pointless to have a million cards that you will never use.
It is much better to have 2 credit cards with limits of $10,000 each rather than to have 20 cards with $1,000 each.
Close the accounts that you have small credit amounts with…like store credit cards ie target, walmart ect..
Try to up the amounts on the big cards that you have.
It will lower your score, but who cares? If you don’t need to apply for credit (actually DEBT) then you are fine. Learn to pay cash for everything and don’t rely on other people’s money and then the “all mighty credit score” doesn’t even matter any more.
You can close them altogether. It will hurt your credit a little for a short period of time. Just keep a few of them with high limits and low balances and you will be okay. I do not think you are looking right now for a credit advance if you are getting rid of recent debts.
I would pay them off and cut them up. It does affect your credit.