should i close credit card

Gail, love the show. I’ve been walking around with dozens of credit cards and department store cards in my wallet for the past few years. And they seem to multiply all on their own. When I add up all the money I could spend, it makes me very nervous, especially since my sister-in-law’s wallet was stolen and she found out that her cards were being used by someone else. Yes, she did call the cancel, but forgot about the department store cards. So I was going to cancel all those cards when someone told me that if I do I’ll ruin my credit history. So now I don’t know what to do? Help!

  1. As long as the account is active there’s an ID theft potential.
  2. As long as the account is active you could end up using it again.

If your track record with revolving credit has been a little shaky, then maybe the temptation to spend will get the better of you down the road, and closing the card now will solve that problem. And if you’re concerned about your exposure to ID theft, you may want to eliminate this credit.

If My Credit Card Balance Is $0 Should I Close the Account?

The standard recommendation is to keep unused accounts with zero balances open. A zero balance on a credit card reflects positively on your credit report and means you have a zero balance-to-limit ratio, also known as the utilization rate. Generally, the lower your utilization rate, the better for your credit scores.

Closing the accounts reduces your available credit, which makes it appear as if your utilization rate has suddenly increased. An increase in your utilization rate is a sign of risk, and may result in a slight dip in credit scores.

From a credit scoring standpoint, you may want to keep the account open and make a small purchase once a month. You can pay the amount off immediately so that you aren’t carrying debt and the activity on the account will demonstrate that you can manage credit and keep your utilization rate low.

If you don’t use the card and have a strong credit history and credit scores, closing the account likely won’t have a significant impact on your credit scores. Keep in mind, if you are planning to make a major credit purchase in the next three to six months, it’s best to leave the account open.

Each scenario is different. Look at your overall financial picture and make a determination based on your own situation.

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Should I Close My High Interest Credit Card Account?

I have recently paid off all my credit cards. However, there is one that is still accruing a $10 monthly fee. The interest rate on the card is 33%. Should I close the card out and if so will it hurt my credit score?

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Definitely close it. It sounds like you have other, better credit cards and paying off an account should not damage your credit rating at all. 33% is a ridiculous interest rate and an additional monthly fee for the right of having the card is just terrible.

Have them send you a letter stating that the account is closed and that is was paid in full. I believe that having less open accounts will actually help your credit rating in general. I would personally close any account that is over 15% APR and any that has any sort of annual fee.

This is also a good time of the year to review your credit report. Be sure to check all three major companies as I once found a small debt listed on one that I had forgotten about. It didn#39;t show up on the other ones and I wound up having it ding my credit for a couple of year for a debt of around $300.00.

Do you still have a balance on this card? I have never heard of a card charging a monthly fee other than interest. Some cards have an annual fee. Either way, you should pay it off or transfer the balance to a better card and then close the account. Never, ever, ever close an account before it#39;s paid off. If a card does not charge an annual fee it is not necessary to close the account. Just don#39;t use it anymore. Accounts that have been open for a long time improve your credit score So, if you go closing all your older accounts you can actlually lower your credit score. However, open accounts with 0 balances do not harm your score at all.

Go to, the only free credit report (don#39;t go to Your report will include a section of recommended actions you can take, to improve your score. I don#39;t feel any need to know my score, just to do what they recommend, and the last time I refi#39;d my house they said my score is awesome. And I was once 55K in debt, and I paid it all off, in a seven-year fight, and you bet I celebrated that it was done. Good luck, keep patiently doing the right things, and God blesses more than you could imagine.

I used to work for one of the three credit bureaus and I would suggest closing this account. As long as you have some accounts in good standing without extremely high credit limits, your score should be fine. Your score is based on number of accounts open,how long you#39;ve had them, how much available credit you have on those accounts, your payment history and the number of inquiries into your account when you apply for new credit. CHecking your OWN credit report does NOT affect your score in any way. If your credit has improved, you should have no need to carry a card with any type of yearly fee. Annual credit has great info. The report is free but your score is not. You generally have to pay around $9.00 for it. Keep in mind that the score you get may not be the same score a company receives on you depending on what factorz that company wants included in their scoring. It varies. Good luck.

The only reason to have a good credit score is to be able to borrow money. Are you planning to borrow money? Probably not--you just got out of debt, right? So even if canceling the card does affect your credit score a little bit, it doesn#39;t matter. It#39;s pointless to pay $10 per month just to keep up your credit score when you#39;re not planning to borrow money anyway.

Close it, but credit score affects everything! Your car insurance rate, your monthly mortgage payment, your ability to get certain jobs, etc. The list goes on. Congrats on getting out of debt.

33% and $10 per month is exhorbiant. I have never heard of such a rip-off rate and would not deal with that company again. Shop around. Plenty of banks offer one-off fees, or if you are lucky, no annual fee. All the ones I know of are much less than $120 per year. And the interest rates are nowhere near 33%. I#39;d write to the company ASAP, and possibly even query the charges. Check your contract as you may be entitled to a complete refund if these terms were not listed.

Some cards will charge you a fee for NOT using the card. This makes no sense to me, and I quickly cancelled the card from the company that was charging me this fee. You do not need a multitude of cards to have a good credit rating. It is more important to have one that you pay off in full every month. Get one with no annual fee, and if possible, a low interest rate. Of course, if you pay off the credit card every month, you don#39;t really care about the fee.

yes you should go to your local bank and apply for their credit card the rates are nearly 50 percent cheaper. you could be putting that ten dollar fee into your gas tank to drive to work instead of giving it to someone else in fees.

If your car insurance payments and monthly mortgage payments are already set, closing one credit card account shouldn#39;t affect them. It only affects them if you apply for a NEW mortgage or NEW insurance and I really doubt closing one account would have a large effect anyway.

YES YES YES close the account. And make SURE you shred the card while you#39;re at it. That rate is completely obsurd! Also, having just 2 or 3 accounts in good standing looks better to creditors than 10 accounts in good standing. Be strong, girl!

YES, definitely close the card account and put in writing to the company that you are doing so due to the high rate of interest and what rate of interest you feel will be acceptable. Companies need to know when they are over-charging, 33% is outrageous! My credit card company called me recently and told my they wanted me to use the card more (I had 18% interest rate) and what would it take, I said well you can lower my interest rate, she asked how about 14%? I replyed that will help. In 30 days I had the new rate paperwork. I do use my card more, but I still pay it off on time as I get my bill. Your credit follows you, you do not follow the credit card company. Do not let a company take advantage of you, be strong. Persistence pays off, so pay yourself FIRST, if a company does not treat you proper, change companies.

No, ask for a lower rate. Closing an account negatively affects your credit score. You don#39;t have to write a letter, just telephone and negotiate for a lower rate.

I tried working with my credit card to help me get back on track with my late payment. I technically was not late but they somehow decided to make my account late. Long story short. So I called them to help me. I did mention to them that I was willing to work with them to pay the card back but they were unwilling to remove fees that were placed on card. They gave me two options. Hardship close out the account all my accounts which are with my bank (Bank of America) worse credit cards ever. Or pay them 400 dollars by 10 days. There is no way I can pay that. Should I close out the accounts. They said they could put me on a payment plan , lower my APR. But they would close out all my credit card accounts within my bank and prob won#39;t let me ever get an account with them. My question is what should I do? I reallly want to get back on track here. Any advice?

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Should i close credit cards i dont use

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Should I Close My Credit Card Accounts?

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Should I Close My 0% Interest Credit Card After I Pay it Off?

Should i close credit card

A 0% interest credit card is a great tool to help you pay down debt without accruing interest in the meantime. Most offer a zero annual percentage rate (APR) for an introductory period that lasts between 6 and 18 months. If you can transfer your credit card balances to the 0 APR card and pay them off before the introductory period ends, you’ll save hundreds or thousands of dollars in interest.

But even after you pay off your credit card debt, you might want to wait before closing your 0% interest card in order to maintain your credit score and help finance future purchases and unexpected costs. If you do decide to keep your account open, be aware that a higher APR will kick in after the introductory period ends, and if you carry a balance, you’ll have to pay interest on it.

Closing any credit card can hurt your credit score because it typically increases your credit utilization ratio. Otherwise known as a balance-to-limit ratio, your credit utilization ratio reflects your total debt owed as compared to your credit limit. This number contributes to the 30% of your FICO score that’s affected by the amounts you owe on your credit cards. A low utilization ratio helps keep your credit score high.

Other benefits of 0% interest cards.

Even though zero interest cards are primarily used for paying off debt, they have other benefits, too, as long as the interest-free introductory period still lasts. For example, if you’re planning a major purchase such as a kitchen appliance or a new television, a card with 0% APR can give you time to pay it off gradually interest-free. Cards with zero interest can also be used in place of an emergency savings fund to finance unforeseen home repairs or an unexpected trip to the hospital. Finally, some zero interest cards even offer rewards when you use them to buy gas or groceries.

If the introductory period runs out and you still carry a balance on the card, you might consider transferring that balance to another low-interest or zero interest card. This will save you money in interest, but your credit score could take a hit. Opening many new accounts in a short amount of time has an impact on your score.

The bottom line: Just because you finish paying off your credit card debt with a 0% interest card doesn’t mean you have to close the card immediately. There are benefits to keeping the account open, including maintaining your credit score and financing major purchases. However, the zero interest rate is temporary, so be prepared for higher interest rates after the introductory period ends.