Jun 06
I open a lot of credit accounts through stores, often to get an extra deal, such as 20% off a purchase. I have also noticed that it is good for my credit rating. I currently have quite a few cards, but I have paid all of them off and do not have a balance. Should I close the accounts?
Mostly, yes.
Having a lot of accounts not only increases the chance you’re identity (or money) can be accessed or stolen, many “big” credit checks (like obtaining a car or house) scrutinize the person’s need to have so much available credit.
Many consumer advocate types suggest having just two or three open credit accounts.
Keep your biggest, natch, and good luck!
No. If you can keep them at a 0 balance. Use them once a month or so and make sur eyou pay them off. It keeps your score high.
If you don’t use them they will close them if they want to. If not it doesn’t hurt to have them because you might see the same item at a better price under different cards in the future.
If your credit rating is good, I would day no. I worked in Loans at Bank of America and I recall asking that question. The Loan Officer said it isn’t really good to have so many credit cards. I think it’s because credit is too accessible. When you apply to buy your house they will take this into consideration.
Having many opened accounts is perfectly fine as long as the accounts are in good standing. This can increase your credit score two fold -
First, having numerous cards increases your total revolving balance. For example if you have five card with $1000 available on each you have a $5000 revolving credit line as FICO see’s it. If you have just a small percentage out, say $500 of that $5000 you only have 10% of your available credit eaten up. Anything under 30-35% is a credit booster (just be careful not to put it all on one card)
Secondly, if you are making purchases on all cards and paying them off you are adding points to your FICO for timely payments.
The problem is that some loan issuers, like Sovereign Bank, will look at those cards on your credit report and add up the total lines of credit. Then they say “if that person were to max out those credit cards all at the same time they would owe a lot and our new loan might not get repaid.” As stupid as that logic may sound that is the way a potential loan officer for a car or a house can be thinking.
The best idea is to call or write the companies who issued the cards you tend to not use and tell them “Please close this account and mark it as ‘canceled at customer’s request’.”
No don’t close your accounts. That would only hurt your credit. You should keep the credit card and keep them in good standing.
Read this They give you a substantial amount of information about this topic.
i personally believe a person should have either 1 or 3 credit cards because credit cards can hurt you financially and cause a finance crisis.
Yes, you should close a few of them. Close the newer ones only. You look like a risk to potential creditors. For example, a lender may look at all your cards and say, “Hmmm. If I add up all his available funds, he could potentially max out all his cards and owe 100K in cc debt. That means I would run the risk of not being paid. DENIED!”
Having open cards on your report with no activity does not help boost your score. You actually have to use the credit…so if you have cards that you KNOW you won’t use again, close ‘em.