Should you close credit card accounts that you are not using? I closed 5 store-specific ones today and confirmed that two others were closed.
Credit Card Closing
This entry was written by Nick, posted on September 17, 2004 at 3:23 pm, filed under Quickie. Bookmark the permalink. Follow any comments here with the RSS feed for this post.
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4 Comments
There was one right answer on that ‘FAQ’ by anonymous people. The more credit you have available the higher your credit scores.
In order to avoid fraud you should monitor your credit report for unauthorized accounts.
Now I’m not saying you should max them out, scores are based on AVAILABLE credit.
The better your scores, the better your interest rates on mortgages and car loans. High scores = leverage.
The reason I closed my accounts is because I hadn’t used them in months or even years on a few of them. I was calling places that I haven’t had a card for years, but had never actually closed the account. I don’t know how all of the credit ratings work, but I’ve never been turned down on anything. Might come in handy though when I get a new car in a few months.
I only have one left. I used to have about 7 different ones going, and about $7000 in debt, but now I have no credit cards, and a sweet 4.25% loan, which only $4500 remains.
I’ve never carried a balance on any of my CC. I only spend money that I have and then pay off the bills each month. For me, CCs are just a convenience thing.