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nraboni
Uggh...
Member since 10/09 6905 total posts
Name:
Nicole
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Should I close my Credit Cards?
I am about to pay off all of my credit cards and I really want to close all except one (to keep in case of an emergency).
People tell me that I shouldn't close them and that I should just cut them up but keep the lines open.
I don't want to keep them open - it's too risky for me to know they are available and I want to stay out of debt.
Is it really bad to close them?
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Posted 11/3/16 12:48 PM  |
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Long Island Weddings
Long Island's Largest Bridal Resource |
Mrs&MrsK
i need sleep ;-)
Member since 2/14 2008 total posts
Name:
L
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Should I close my Credit Cards?
no you need to keep the length of time you've had them to make your credit score better
just cut them up. eventually they will close themselves if you dont use them and by then you will have more years of credit.
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| Posted 11/3/16 12:56 PM |
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StaceyWill
It's a girl!!!
Member since 6/10 21539 total posts
Name:
Stacey
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Re: Should I close my Credit Cards?
Posted by Mrs&MrsK
no you need to keep the length of time you've had them to make your credit score better
just cut them up. eventually they will close themselves if you dont use them and by then you will have more years of credit.
This.
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| Posted 11/3/16 1:06 PM |
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Should I close my Credit Cards?
Never ever close! :)
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| Posted 11/3/16 1:06 PM |
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JP826
=)
Member since 9/06 10903 total posts
Name:
Me!! All about ME!
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Re: Should I close my Credit Cards?
Do not close them! It is good to keep them open so you can have more available credit vs debt.
The more cards you have, the higher your total credit limit will be, being that you will have a low or zero balance, your debt-to-credit ratio is better.
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| Posted 11/3/16 1:17 PM |
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JDubs
different, not less
Member since 7/09 13160 total posts
Name:
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Re: Should I close my Credit Cards?
I have credit cards I never use and I haven't closed them- I heard it hurts your credit.
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| Posted 11/3/16 1:25 PM |
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Paramount
Sweet!
Member since 7/12 4289 total posts
Name:
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Re: Should I close my Credit Cards?
The simple answer is no.
What you want is 2 things:
1. To make sure you keep the credit card you have to the longest. It will "F" your credit score. ONe of the things your credit score goes by is how LONG you have had credit.
SO make sure you keep the card you have had the longest.
2. Closing all your credit cards makes the amount of available credit go down. As long as you are not carrying debt it should not be a problem. For example. Lets say you had 2 credit cards. Each with a $1k limit. One card had $500, the other had nothing on it. That means your available credit is 75% of what you have available. If you close the $1k card then it falls to 50%. I do NOT know what the "magic" number is for effecting your credit. But REDUCING to only 50% cant be favorable.
So I would keep your oldest card, AND the one with the highest limit if I were in your shoes.
Let me know if you have any questions.
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| Posted 11/3/16 1:27 PM |
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nraboni
Uggh...
Member since 10/09 6905 total posts
Name:
Nicole
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Should I close my Credit Cards?
Thanks everyone!
I have had a lot of these credit cards for 10+ years. I guess I'll just keep them open and cut the cards so I don't have access to them.
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| Posted 11/3/16 2:13 PM |
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pjt212301
LIF Adult
Member since 7/12 1215 total posts
Name:
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Should I close my Credit Cards?
Curious - I could never figure out the answer to this question - at what point does keeping it open and paying a yearly charge make it not worth it? One of my Amex cards has a $450 annual fee
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| Posted 11/3/16 2:19 PM |
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nraboni
Uggh...
Member since 10/09 6905 total posts
Name:
Nicole
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Re: Should I close my Credit Cards?
Posted by pjt212301
Curious - I could never figure out the answer to this question - at what point does keeping it open and paying a yearly charge make it not worth it? One of my Amex cards has a $450 annual fee
None of mine have an annual fee.
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| Posted 11/3/16 2:22 PM |
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Michi
My Love
Member since 5/05 31600 total posts
Name:
M
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Re: Should I close my Credit Cards?
Posted by nraboni
Thanks everyone!
I have had a lot of these credit cards for 10+ years. I guess I'll just keep them open and cut the cards so I don't have access to them.
Cut Them or Freeze Them. Dont close them.
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| Posted 11/3/16 2:30 PM |
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CSK
LIF Adolescent
Member since 9/11 892 total posts
Name:
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Re: Should I close my Credit Cards?
Posted by pjt212301
Curious - I could never figure out the answer to this question - at what point does keeping it open and paying a yearly charge make it not worth it? One of my Amex cards has a $450 annual fee
If you're not using the benefits to equal $450, definitely close that out.
Yes keeping credit cards with a long history will benefit your credit score. Yes keeping credit cards open with a high limit help with your debt utilization percentage. But realistically, you have to weight the cost/benefit here. I've closed my AMEX due to the annual fee. The only times any of this matter are when you need more credit either through a home loan or car loan. Closing 1 or 2 cards when you have many that have a history, isn't going to give you much of a ding, especially if you have good credit.
To the OP. yes it will benefit your credit score if you keep credit cards open with no balance. However, you have to weigh that benefit against your risk of running them up again. Some people have the impulse control to have them in a drawer and not spend. Others do not, spending can be an addition. Know which one you are. People will tell you to keep them, and they're not wrong, but you probably know better than them whether you can control your spending with them being available.
Yes you can literally freeze them or cut them up, but unless you only have 1, chances are, you'll get a replacement cards frequently enough renewing the temptation. Plus, how many websites have your saved credit card data so you can easily 1 click purchase...
I use my credit cards all the time and pay off in full every month. It works for me, I earn reward points and don't pay any interest. However, I can spend more than I should and I can see how it could spiral.
Message edited 11/3/2016 3:57:00 PM.
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| Posted 11/3/16 3:55 PM |
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