Comments on: Should I Close My Credit Card? http://frugaldad.com/2009/10/05/credit-cards-to-close-or-not-to-close/ Tips for living frugal while still having a life Sat, 20 Mar 2010 18:11:29 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Ned http://frugaldad.com/2009/10/05/credit-cards-to-close-or-not-to-close/comment-page-1/#comment-32672 Ned Mon, 12 Oct 2009 13:11:43 +0000 http://frugaldad.com/?p=3868#comment-32672 I think that you should close all credit card accounts except for one. If you just leave them open with zero balance, a good underwriter will look at your credit report and see a lot of available credit and treat it as a risk. Especially if you are buying a house. Let's not forget that the credit score alone is not the only factor in getting a loan. I think that you should close all credit card accounts except for one. If you just leave them open with zero balance, a good underwriter will look at your credit report and see a lot of available credit and treat it as a risk. Especially if you are buying a house. Let’s not forget that the credit score alone is not the only factor in getting a loan.

]]> By: Credit Card Chaser http://frugaldad.com/2009/10/05/credit-cards-to-close-or-not-to-close/comment-page-1/#comment-32579 Credit Card Chaser Thu, 08 Oct 2009 01:18:51 +0000 http://frugaldad.com/?p=3868#comment-32579 Always, always, always keep the credit card and do not cancel the card UNLESS there is an overly onerous annual fee or you simply absolutely cannot restrain yourself to stop using the card when you do not have the bank. The reason that you do not want to close the account is that closing the account will negatively affect your credit score in at least 2 different ways: it will lower your available credit which in turn hurts your credit utilization ratios and it will remove that card off of your length of credit history. You will do well to ignore off the cuff remarks from people like "Financial Samurai" who say things like "Pls CLOSE. Anybody with more than 2 credit cards has too many." as they are sadly misinformed. Always, always, always keep the credit card and do not cancel the card UNLESS there is an overly onerous annual fee or you simply absolutely cannot restrain yourself to stop using the card when you do not have the bank. The reason that you do not want to close the account is that closing the account will negatively affect your credit score in at least 2 different ways: it will lower your available credit which in turn hurts your credit utilization ratios and it will remove that card off of your length of credit history. You will do well to ignore off the cuff remarks from people like “Financial Samurai” who say things like “Pls CLOSE. Anybody with more than 2 credit cards has too many.” as they are sadly misinformed.

]]> By: Mr. Not the Jet Set http://frugaldad.com/2009/10/05/credit-cards-to-close-or-not-to-close/comment-page-1/#comment-32574 Mr. Not the Jet Set Wed, 07 Oct 2009 18:54:38 +0000 http://frugaldad.com/?p=3868#comment-32574 In the words of Matt Jabs (my new hero) <a href="http://www.debtfreeadventure.com/2009/10/credit-cards-close-em-shred-em-forget-em/" rel="nofollow">Close ‘em Shred ‘em & Forget ‘em!</a> In the words of Matt Jabs (my new hero) Close ‘em Shred ‘em & Forget ‘em!

]]> By: Edwin / Cash The Checks http://frugaldad.com/2009/10/05/credit-cards-to-close-or-not-to-close/comment-page-1/#comment-32532 Edwin / Cash The Checks Wed, 07 Oct 2009 05:27:46 +0000 http://frugaldad.com/?p=3868#comment-32532 My point of view is this, if you're not going to need your credit for a few years (no new car loan, not refinancing) then close it, especially if you already have another card with a lower interest rate, no fees and reward points. My point of view is this, if you’re not going to need your credit for a few years (no new car loan, not refinancing) then close it, especially if you already have another card with a lower interest rate, no fees and reward points.

]]> By: John DeFlumeri Jr http://frugaldad.com/2009/10/05/credit-cards-to-close-or-not-to-close/comment-page-1/#comment-32491 John DeFlumeri Jr Tue, 06 Oct 2009 03:03:54 +0000 http://frugaldad.com/?p=3868#comment-32491 If you have a lot of credit cards I think it's best to keep the oldest cards, it fortifies your FICO score If you have a lot of credit cards I think it’s best to keep the oldest cards, it fortifies your FICO score

]]> By: Rob http://frugaldad.com/2009/10/05/credit-cards-to-close-or-not-to-close/comment-page-1/#comment-32489 Rob Mon, 05 Oct 2009 23:39:59 +0000 http://frugaldad.com/?p=3868#comment-32489 Thanks for the good info. I should have mentioned I do have other cards with much longer history behind them and also larger lines of credit on them. There was no annual fee on the card and no non-usage fees. I guess I could have used it once a year to prevent this but hopefully I should be OK. Thanks for the good info. I should have mentioned I do have other cards with much longer history behind them and also larger lines of credit on them. There was no annual fee on the card and no non-usage fees. I guess I could have used it once a year to prevent this but hopefully I should be OK.

]]> By: Lawrence http://frugaldad.com/2009/10/05/credit-cards-to-close-or-not-to-close/comment-page-1/#comment-32487 Lawrence Mon, 05 Oct 2009 22:44:22 +0000 http://frugaldad.com/?p=3868#comment-32487 A very important point to consider before closing a credit card is how long the card has been open. If the card has been open for an extended period of time and has a positive status you may want to reconsider closing it. As long as you keep the balance down or paid off it shouldn't matter how high the interest rate is. But, the longer a tradeline has been open, the more it affects your score so... if it's been open for a long time, keep it open. Just don't use it. A very important point to consider before closing a credit card is how long the card has been open. If the card has been open for an extended period of time and has a positive status you may want to reconsider closing it. As long as you keep the balance down or paid off it shouldn’t matter how high the interest rate is. But, the longer a tradeline has been open, the more it affects your score so… if it’s been open for a long time, keep it open. Just don’t use it.

]]> By: Dave - LifeExcursion http://frugaldad.com/2009/10/05/credit-cards-to-close-or-not-to-close/comment-page-1/#comment-32486 Dave - LifeExcursion Mon, 05 Oct 2009 22:36:42 +0000 http://frugaldad.com/?p=3868#comment-32486 Like you said, it kind of depends on the person. If you are able to handle having a credit card than it can benefit you. The question everyone must ask themselves is whether they can manage it properly. That is the tough part. Dave LifeExcursion Like you said, it kind of depends on the person. If you are able to handle having a credit card than it can benefit you. The question everyone must ask themselves is whether they can manage it properly. That is the tough part.

Dave
LifeExcursion

]]> By: mewithoutdebt.com http://frugaldad.com/2009/10/05/credit-cards-to-close-or-not-to-close/comment-page-1/#comment-32482 mewithoutdebt.com Mon, 05 Oct 2009 17:58:35 +0000 http://frugaldad.com/?p=3868#comment-32482 My rule of thumb is keep account open (if there is no annual fee etc) but keep credit card unavailable to you. The credit utilization (debt to credit ratio) can effect negatively on credit score. My rule of thumb is keep account open (if there is no annual fee etc) but keep credit card unavailable to you. The credit utilization (debt to credit ratio) can effect negatively on credit score.

]]> By: Financial Samurai http://frugaldad.com/2009/10/05/credit-cards-to-close-or-not-to-close/comment-page-1/#comment-32480 Financial Samurai Mon, 05 Oct 2009 16:46:18 +0000 http://frugaldad.com/?p=3868#comment-32480 Pls CLOSE. Anybody with more than 2 credit cards has too many. Pls CLOSE. Anybody with more than 2 credit cards has too many.

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