Should I close my credit cards after they are paid off or leave them open? What's best for my credit report?
Answers
278 points
ThaDRAGN answered one year ago …
I think leaving them open is the best bet, but that's only assuming you have a great credit history with that company. Keeping the card open will be a net positive for you (even with the nominal annual fees) because if your credit history with that particular company is good, credit reporting agencies will view the longer-term relationship as an indication of your ability to maintain ongoing good credit. So my advice, keep it.
What do other folks have to say?
123 points
CakeFinancial answered one year ago …
from what i understand, keep the cards that you want to maintain a relationship with open. give preference to ones that you have a long history with that have a low rate and low or no annual fees.
department store cards, high rate cards, high annual fee cards, just consolidate and get rid of them.
348 points
Sensei answered one year ago …
In addition to what has already been said, know that credit agencies look at how many of these you have and what the limit is on them. In evaluating your credit score they will, amongst other things, add the credit limits together! In other words, they will assume that you'll "max them out" even if you never use one of them. Believe it or not, the more cards you have and the higher the limits, the lower your credit score - even if you have a perfect payment record!
You should should have two, perhaps three, but no more. You should have a VISA and a Mastercard because some places will take one but not the other. And,as CakeFinancial said, get rid of department store cards, etc. You don't need them. I can't think of one that doesn't take VISA or Mastercard.
102 points
dianeleblanc answered one year ago …
I paid off my credit cards and have only 2 that I now use for which I lowered the amount I could charge. It helped to raise my score
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