WoW12 asked:
I have about 10 credit cars(4 are store cards) I’m getting ready to have them all paid off by July, how should I proceed in closing them? Someone told me it still hurts your score if you close a credit card? Is this true? Should I close one every three months? HELP!
I have about 10 credit cars(4 are store cards) I’m getting ready to have them all paid off by July, how should I proceed in closing them? Someone told me it still hurts your score if you close a credit card? Is this true? Should I close one every three months? HELP!
Thanks
Jeremy,
I totally agree with you. I fell into the trap that credit card companies set up for fresh out of high school kids. Thanks for the response.
HERSCHEL
WARD
Having so many credit cards is hurting your score more than closing them.
I would go ahead and close half of them, especially the ones that don’t have a balance. Pay off the ones with the smallest balance first and close them.
Closing them will make a difference and help you out in the long run. You don’t need the debt, which WILL ruin your score.
Comment by TEDDY — October 18, 2009 @ 12:32 am
BRADY
Call each company, visa, mastercard, bank of america, etc, and tell them you want to shut them down.
Note: You will need to clear all the ballances, Its probably easier at this point to transfer all balances to one card and pay that one off.
Comment by GARTH — October 21, 2009 @ 7:48 am
DANIEL
It should not hurt your score as long as you can pay them all in full…If you have the money to close then go for it as soon as you would like.
Comment by BRIAN — October 23, 2009 @ 8:47 am
NICK
Close them and shread them! Congrats and way to go!!
Comment by LIONEL — October 26, 2009 @ 6:03 am
MACK
I was told that you shouldn’t close ALL of your cards. Keep two open and use them a couple times a year. Make sure to pay them off asap when you do use them.
Comment by GENE — October 27, 2009 @ 2:18 am
KEVIN
Combine them where you can by rolling the balances of the higher interest rate ones into the lower ones. Then close them as you pay them off.
Comment by SHELBY — October 30, 2009 @ 1:21 am
CHARLEY
cut them up so you don’t use them, save your statement with the customer service numbers and cancel them six months after you close them. It won’t hurt your credit this way and shows that you have paid out and didn’t go back in to debt right away. Good for you on getting the debt taken care of, it will def be nice to spend your paychecks on something other than interest, don’t you think?
Comment by DUDLEY — November 1, 2009 @ 2:59 am
WYATT
DO NOT CLOSE THOSE ACCOUNTS. Keep them open closing them does hurt your credit part of your FICO score depends on credit history so how long you have maintained those cards is very important.
Comment by BARNEY — November 2, 2009 @ 12:21 am
ANTONIO
I agree with the poster above. Having 10 is the worst party. Pay as many off as you can and close at least half. Then pay the others off and leave them active. Every month or 2 put something small on them that you want or need and PAY IT OFF THAT MONTH. It will really boost your credit after doing that for a year. then begin closing ones you don’t really need and keep one or two and continue to do what I mentioned. good luck.
Comment by MIGUEL — November 4, 2009 @ 5:05 pm
JEFF
Do not close an open account because yes, it will hurt your score because with a closed account, it reduces your overall revolving credit line. IE, let’s say your 10 cards have $1000 limit on each. If they’re all paid off on your credit report it will show you have a revolving credit line of $10,000 and your balances are zero which is great.
However, if you close 5 of them, now your revolving credit line is $5000. Still with a balance of zero that is good, BUT if you do happen to use one of them, your utilization will be affected. Let’s say you have transmission trouble and it will cost you $1000. You use one of those Visa cards and pay for the repairs. Now, with $5000 in revolving credit, and $1000 of that being used, your utilization is 20%. With the $10000 revolving amount, your utilization would only be 10%.
If you’re concerned about using them, cut them up. But don’t close them out.
Comment by COLE — November 6, 2009 @ 3:09 pm
NORMAND
I know what you mean. I have been closing some and have watch my FICO score drop. But we have to do what we have to do to cut down on all the service charges and stay with the best cards. I would not worry about it because after some time your credit report will show you are not overextended and pay on time. The less cards for me is better in the long run, regardless of what kind of credit it looks like I have available. The important thing is to have a couple of good cards with a good available balance and to pay BEFORE the bill is actually due, as this will show up to be a quicker way to raise your score.
Comment by HERBERT — November 10, 2009 @ 2:45 am
CARLOS
Because your credit score is based on credit history, closing older accounts in good standing could hurt you in the short term.
If you are going to close multiple accounts, close a couple at a time, starting with the most recent.
Credit limits also affect credit scoring so if you have outstanding debt, you don’t want to make the ration appear higher by closing a high limit account before a low limit account
Good luck and congratulations on paying off your debt!
Comment by FERNANDO — November 13, 2009 @ 10:20 am
JAVIER
While your FICO score will initially take a hit, eventually the closing of the cards won’t affect the score as much (in probably 18-24 months). The main concern is having that many can cause problems financially (juggling so many cards; missing payments because you are trying to remember which one is due), especially if you are carrying a balance on them. I typically don’t recommend anyone using credit cards at all. But if they do, I wouldn’t recommend any more than 5 (for most people) at the max, 2 recommended.
Comment by ALI — November 15, 2009 @ 12:20 pm
SILAS
Yes, it hurts your score to cancel cards, because:
1. It shortens the payment history for all your accounts
2. Shortens the average age of accounts, making it looks like you’re inexpreienced with credit
3. And most importantly, you lose available credit, making it look like you borrwoing more than you’re capable of borrowing.
My suggestion would be if you’re going to close those store cards, get line increases on your other cards to match the limits of the cards you’re going to cancel. This way, at least you can reduce the hit your score will take if the cards you cancel are older cards. Your average age of accounts only makes up for 15% of your score as opposed to the ratio of credit used to available credit, which is 30%.
Another thing, if you do close the accounts, make sure they’re “closed by consumer/subscriber”. And that you gradually close the accounts, like every 3 months, like you said, instead of all at once.
Comment by BRYANT — November 17, 2009 @ 12:42 pm
IRVIN
Make sure the balances are paid and your statements reflect it ( 0 Balance). Contact each individual card issuer, in writing, and inform them that you wish to close the account. Closing accounts does not affect your credit score, only if you have had no credit. I would keep one or two cards, make small purchases from time to time, but paid the balance off when you get the next statement.
Comment by JAY — November 17, 2009 @ 6:39 pm