Should You Close Credit Cards That You Don’t Use?
July 10th 2008 02:13
It used to be that if you weren’t using a credit card, you called them up and closed it. That way there was no credit available to you from that creditor so there was no temptation to use it. At the same time, with no available credit, you didn’t have to worry about someone stealing your card number and going on a shopping spree courtesy of you.
Now I hear financial people say don’t close those accounts. If they are paid off, it improves your credit score. So the question is, do you take the risk of getting the number stolen or is it more important that you have excellent credit?
Somehow, this doesn’t really work for me. I just don’t see the advantage of having a credit card sitting around to show that I have lots of available credit to make my credit score appear absolutely wonderful.
I also see a lot of people that can’t handle it. If they have money available on a credit card, then it’s going to be spent. Those people are better off getting cards paid off and completely out of debt.
What’s actually the best thing for you to do? Pay off the credit cards, close the accounts, and learn to live off cash only. If you can only afford nice things because you have credit; you really can’t afford them.
Now I hear financial people say don’t close those accounts. If they are paid off, it improves your credit score. So the question is, do you take the risk of getting the number stolen or is it more important that you have excellent credit?
Somehow, this doesn’t really work for me. I just don’t see the advantage of having a credit card sitting around to show that I have lots of available credit to make my credit score appear absolutely wonderful.
I also see a lot of people that can’t handle it. If they have money available on a credit card, then it’s going to be spent. Those people are better off getting cards paid off and completely out of debt.
What’s actually the best thing for you to do? Pay off the credit cards, close the accounts, and learn to live off cash only. If you can only afford nice things because you have credit; you really can’t afford them.
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