After I finish Paying off credit cards.......

[Savingmonster]

This is my very first post so welcome me .... I am more determined than ever when it comes to this 'saving' business.

Back to my question:

Should I call the CC company to Cancel ASAP. Will doing this increase my credit score? or should I just leave them open.

Thanks a lot in advance.

[sweeps]

Welcome!

You've asked frequently asked question #67. In general, no, you should not cancel your credit cards. Feel free to lock them away in a vault and never use them again, but don't cancel them. The credit history and available credit is a positive for your credit score.

Congrats on paying off your credit cards.

[terry1156]

I concur with Sweepsplayer. Closing them will shorten your credit life and likely lower your credit score. The one exception would be if you can't control yourself and know you'll use it if you don't cancel, but it seems like you have taken control and should be able to keep it without letting it take control of you.

[Savingmonster]

thanks a lot. I guess it's too late huh? I cancelled two of my four cards I've paid off .

I only have one left!!!! with only $2,600 on the balance. Last year I had 4 cards totaling around $12, 000. Now I feel Like I deserve to save for myself. I will get a 0% apr card and pay off that last one around tax season next year. After I transfer the card to the 0% one, I will keep it open and when I pay for the one thats 2600, I will keep that one open as well since it helps my Credit score. I always thought I had to cut them up and cancel to get a better score!!!!! dumb right?

[sweeps]

Don't worry, most of us have done it. Closing accounts will reduce your score in the short term, but over the long term have a negligible effect. Keep up the good work.

[Savingmonster]

Originally Posted by terry1156

I concur with Sweepsplayer. Closing them will shorten your credit life and likely lower your credit score. The one exception would be if you can't control yourself and know you'll use it if you don't cancel, but it seems like you have taken control and should be able to keep it without letting it take control of you.

I am scared to death of using credit cards, trust me, I see how much trouble it got me in since I was able to get one in college a few years ago. I am much more Disciplined now, albeit, $12,000 ++++ of paying them off. I now understand the importance of paying them off the very next statement.

[Savingmonster]

Originally Posted by Sweepsplayer

Don't worry, most of us have done it. Closing accounts will reduce your score in the short term, but over the long term have a negligible effect. Keep up the good work.

Thanks a lot man... What are you thoughts about online banks? I just started one at Capital One which was offering 4.75%, which is great. I've been with them about a month now, but to transfer funds to them is a really long time. I mean, I think their customer service is great. I don't plan on taking any of that money I saved from them, but sometimes I wonder, "Damn, how long would it take them to transfer funds back to me?!!".

Maybe after my first month, it will get better.

[sweeps]

You'll probably find the MMA Summary Thread useful.

[Ima saver]

Good luck to you in paying everything off and staying out of debt! I have been a little chicken to go with an on line bank because I am building a big house and need to get to my money in a hurry. When i sell this house, I will probably put quite a bit in a money market account, but I can just let it sit then. in the meantime, I am watching the MMA summary thread closely. Oh, and welcome to the site!![Automated by GetSmile]

[slimcustomer]

Originally Posted by Savingmonster

thanks a lot. I guess it's too late huh? I cancelled two of my four cards I've paid off .

Sometimes card companies will reopen recently closed accounts. Just make sure they're not opening new accounts if that is not your intention. If it's true, you can say that you closed them based on bad financial advice.

[sweeps]

I should add an exception to the no-close rule. If you're being charged an annual fee for the card and the company will not allow you to switch to a no-fee card without re-applying, then you should probably close it.

[Ima saver]

Oh yes, I have never had to pay an annual fee and I never would.

[slimcustomer]

Originally Posted by Ima saver

Oh yes, I have never had to pay an annual fee and I never would.

A lot of airline credit cards are more than worth a years annual fee if you get good account opening or retention offers. As long as you come out ahead, then it's worth it in my opinion( in other words, I'd gladly give you $5 if you give me $10 in return ).

[Broken Arrow]

Welcome!

I wouldn't sweat closing them. What's really important is that you're kicking debt butts and taking names.

Of course, I wouldn't close any more card from this point on.

[jamreed02]

great job! and welcome! that makes me feel a bit more optimistic! it seems no matter what I do lately, we just don't get ahead, but DH just started a new job, and we're in that dreaded waiting period before the first paycheck... we should have it tomorrow!

[neatdesign]

Originally Posted by Savingmonster

I only have one left!!!! with only $2,600 on the balance. Last year I had 4 cards totaling around $12, 000. Now I feel Like I deserve to save for myself.

First, WOW! That is really great and very inspiring. We have about $22k right now and are trying very hard to get rid of it. Your experience really gives me hope.

Second, I honestly thought at first that you had written, "Last year I had 4 cards totaling around $12,000. Now I feel like I deserve a pat on the back"!!! And to that I thought, "Of COURSE you do!!" LOL

Originally Posted by slimcustomer

Sometimes card companies will reopen recently closed accounts.

I don't know about other creditors, but Capital One accounts cannot be reopened once they've been closed for 30 days. I'm sure that timeframe is probably pretty standard, though.

Keep in mind that if your account has unredeemed rewards points, once you close the account you cannot get those points back, even if you are able to reopen the account later. Make sure you redeem any points BEFORE you close.

If it is a Capital One small business credit card account, that cannot be reopened, period. Once it's closed, it's closed.

~ Jenney

[Savingmonster]

Jenny that 22k is just CCs?

If so, don't worry if you are trying hard are ARE eventually going to take them down one at a time!!. Having no CC Debt is a very rewarding feeling!

I had to pay 800-1000 a month though. It was tough, but I did it. That 2600 feels like nothing.

[neatdesign]

Originally Posted by Savingmonster

Jenny that 22k is just CCs?

Yep, 'fraid so. We had sort of a financial/employment crisis last year, and after going through our savings we had to go to the last resort, credit cards. We went from two cards to five cards. In the next couple of months we will definitely have two cards paid off, and hopefully a third. I wish we could dedicate as much as you did towards paying down our debt, but right now we don't earn enough to do that. Still, hope is still alive!

~ Jenney

[Savingmonster]

Originally Posted by neatdesign

Yep, 'fraid so. We had sort of a financial/employment crisis last year, and after going through our savings we had to go to the last resort, credit cards. We went from two cards to five cards. In the next couple of months we will definitely have two cards paid off, and hopefully a third. I wish we could dedicate as much as you did towards paying down our debt, but right now we don't earn enough to do that. Still, hope is still alive!

~ Jenney

Somehow I am convinced you are going to overcome this. Just take one credit card at a time. Up until this year I was very bad with money, savings and not paying off these cards. Last year I made a serious commitment to paying off those CCs. I never thought I would have paid it off, never ever ever ever * 1000. Determination I think is the key. Again, You are going to get through it.

[Ima saver]

It is amazing what you can do when you really try. I pay off my credit cards each month, but I am trying really hard to pay off a piece of investment property. Somehow, I have been able to come up with an extra $1000 each month to pay on the principal. I have got it more than half paid off, but still owe a lot!