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JC297
LIF Infant
Member since 7/11 358 total posts
Name:
jac
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Closing credit cards?
I carried a very significant amount of debt for a very long time. I ended up taking a loan from my parents to pay the cards off. I have 7 credit cards. Is it in my best interest to close them? My credit score isn't terrible because I was always making my payments on time. I plan to keep at least 2 cards active but pay them off monthly.
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Posted 5/13/13 9:23 AM  |
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CantWait
LIF Zygote
Member since 8/10 10 total posts
Name:
Liz
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Re: Closing credit cards?
I heard that closing credit cards is a no no - better off just leaving them open and keeping the balance at Zero, this also shows credit available. I also heard that once in a blue moon you should charge something, even if its $10 at CVS and pay if off right away to show you are using it.
Congrats on paying off your debt!
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| Posted 5/14/13 3:43 PM |
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Re: Closing credit cards?
Posted by CantWait
I heard that closing credit cards is a no no - better off just leaving them open and keeping the balance at Zero, this also shows credit available. I also heard that once in a blue moon you should charge something, even if its $10 at CVS and pay if off right away to show you are using it.
Congrats on paying off your debt!
I have heard this as well.
DH and I have various lines of credit we don't use since we paid off the item (i.e. account at Toys R Us, Target, Best Buy, health care related, pet related, etc.).
We also have one joint credit card we use and I always pay it off in full each month, even if I have to take from savings to do so.
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| Posted 5/15/13 7:51 AM |
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BklynBabe12
LIF Adolescent
Member since 1/12 561 total posts
Name:
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Re: Closing credit cards?
Don't close them out, UNLESS they have annual fee. If they don't, shred the card and forget about it. CLosing the card hurts the credit.
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| Posted 5/21/13 3:55 PM |
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JustBrowsing
LIF Infant
Member since 3/13 68 total posts
Name:
OnlyTheShadowKnows
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Closing credit cards?
Why does closing the card, of your own choice, hurt your credit? Does it hurt if you request them to lower your credit limit?
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| Posted 6/18/13 1:41 PM |
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hope123
LIF Adult
Member since 2/08 1097 total posts
Name:
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Closing credit cards?
Every time you close a cc, it takes off 10 points off your credit score. If you don't plan on making any large purchases where they check your credit score within the next year, you will be ok with closing the couple of cards you don't use. It really won't hurt your credit to keep them open though.
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| Posted 6/20/13 11:29 AM |
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hope123
LIF Adult
Member since 2/08 1097 total posts
Name:
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Re: Closing credit cards?
Posted by JustBrowsing
Why does closing the card, of your own choice, hurt your credit? Does it hurt if you request them to lower your credit limit?
When you close a card, it lowers your credit score. When you lower your credit limit it has an impact on the credit score because credit card balance to cc limit ratio changes. If you don't plan on taking a loan in the next couple of years, and make payments on time you will be fine closing cards or lowering your limit.
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| Posted 6/20/13 11:34 AM |
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LuckySV
LIF Adult
Member since 10/05 4675 total posts
Name:
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Re: Closing credit cards?
It depends. Do you still carry debt on a CC? I've closed CCs and now only have 1 cc and 2 store ones. I've never had a credit score issue.
http://myfico.custhelp.com/app/answers/detail/a_id/13/kw/closing%20credit%20cards/session/L3RpbWUvMTM3MTc0MzQ0MC9zaWQvTTUyUkJkdGw%3D
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| Posted 6/20/13 11:55 AM |
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Re: Closing credit cards?
This was asked on a Suze Orman show recently and she said that it depends on the card and the credit limit on the card, if to a store card with only a $1K limit, you can close it without any negative impact on your credit. If you close a bunch of VISA cards that have $5-20K limits on each, then yes..your score will drop.
She advised to close them slowly though and not all at once. I have 12 credit cards and only use 2-3 with any frequency. Closed 2 store cards (Banana Republic and Old Navy) with zero impact on my credit. Plan to close another Chase cc soon.
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| Posted 6/20/13 12:57 PM |
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MrsMick
Baby #2 debuts in March 2016!
Member since 9/09 1977 total posts
Name:
Michele
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Re: Closing credit cards?
Posted by CantWait
I heard that closing credit cards is a no no - better off just leaving them open and keeping the balance at Zero, this also shows credit available. I also heard that once in a blue moon you should charge something, even if its $10 at CVS and pay if off right away to show you are using it.
Congrats on paying off your debt!
This. Anytime you close your card it limits your "credibility." I learned this as I have amazing credit but when DH and I applied for our mortgage, I was told my score was amazing but had no open credit. I was shocked. It was because my car loan was paid off and it closed as well as a card I had was paid off and closed. So as soon as I got a new card and charged small items on it, it was a positive thing.
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| Posted 6/27/13 12:34 PM |
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alexb
LIF Adult
Member since 5/13 960 total posts
Name:
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Closing credit cards?
don't close any cards, just cut them up and forget they ever existed. Closing any accounts will lower your debt to credit ratio- which is what your credit score is based on. use your active credit cards monthly, but make sure you make monthly payments as well. Paying them in full, will also help with your score as your debt will decrease. congrats on lowering your debt- it's a pretty empowering feeling !
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| Posted 7/16/13 11:26 PM |
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