Should you close credit cards when you have a zero balance?
I just opened a new credit card with a much betterAPR and transferred the balance from 2 other cards onto the new one. I’ve heard different things, that you should close it and that you should leave it open. Does anyone know what yoru should really do?
Tags: Balance, Cards, close, Credit, Should, Zero
How many cards do you need? Close them all except the one with the balance just to keep things under control.
Ultimately, you don’t need alot of credit cards. To many will start to impact your credit ratings (not your credit score unless you missed a couple of payments).
If you only have a few credit cards, leave them open. Don’t use them (at least not often – when you do, pay the balance off the next month). Your credit rating will be affected by credit cards that have limits with no balances. It shows that you are approved for such limits but can keep it under control.
Closing them affects your balance to credit limit ratio.
Ron, ChFC
It depends on if you can control yourself not to use all of the open cards. If you think that you might potentially use the card, then I say close it. But if you can hold off on that temptation then I say leave it open. By leaving it open and not using it it does help your credit score. For example if you have 3 cards with 1 had a 500 limit 2 has a 500 limit and 3 has 1000 limit you have 2000 credit. If on all of these cards you have a total of 1000 purchased you still have 1000 available. But if you close the 3rd card with the 1000 limit and still had 1000 debt it looks like you are maxed out and your credit score will go down.
No. You should not, at lest for a while. Because it could reduce the amount of credit available to you. Consequently, same with, your credit score.
No, Because, the longer you have an account open, the better it will look on your credit report.
If they have an annual fee, a very low credit limit, or you don’t think you can put them away and not use them it’s probably best to close them. Otherwise leave the accounts open.
As a lender for six years, specializing in debt consolidation, I would say close the card. If this new card has a better interest rate, and you don’t need the other cards for anything other than random spending, then why do you need them?
Less cards is better. More cards = bigger chance to get into more debt