What to do with paid-off card?

[uRabbit]

Some of you may remember that I just paid-off my last credit card, which sits at 24.24%. What should I do with it now? There is no annual fee, and I have had this account since I was 18. Should I --

- Cancel it, do nothing
- Cancel it, get new card
- Cancel it, wait a few months for credit to boost, get new card
- Keep it, do nothing
- Keep it, use it, payoff each transaction immediately
- Keep it, wait a few months for credit to boost, cancel, get new cars

I really do not want a credit card, but if it helps my credit score by having one, then I am willing to live with one. I was wondering if it would be better to use it for gas, and just keep paying it before interest accrues. This card has NO benefits/rewards. A simple Master Card Platinum through HSBC.

[disneysteve]

Is it a rewards card? If it is, and the rewards are of value to you, you can use it IF AND ONLY IF you will never use it to purchase anything you wouldn't be buying anyway and you will ALWAYS pay the FULL balance each and every month.

[krantcents]

Keep it, but don't use! If for no ther reason than to maintain your FICO score. You may want to keep it active by using it for a few purchases each month. Be sure to pay the entire balance off each month though. I presume that there is no annual fee.

[scot184]

If it's an old account, it's probably pretty important to your credit score. If you only have a few cards, under 5, probably best to keep it open for the positive scoring benefit.

[thefrugaltoad]

I agree that you should keep the account open as long as it is in good standing. Closing the account can have a negative impact on your credit score.

[cschin4]

Open a new card with a much lower interest rate. Then cancel this ridiculous high interest card.

[cschin4]

Regarding CC's, my advice, you only need one major CC. That's it. Don't get suckered into opening store cards or other cards even if you save money. NOt worth it in my book. And, when you use your cc, pay it off in full at the end of every month. Period. NEVER run a balance. I am 46 and i have never, ever not paid off my cc in full. I hope always to do so. And, don't use your card unless you need to . It is for your convencience not theirs. Don't worry about your credit score. I don't know or care what my credit score is. If you are paying off your bills on time and aren't in debt, your credit is just fine. And, don't every charge more than you can pay for at the end of the month. That's it.

[humandraydel]

Keep the card, but only charge a small % of your available credit to it per month (and pay it in full, obviously).

[JoshuaHeckathorn]

Keep it open since it has no annual fee and was the first card you ever had. If you close it, it'll hurt your length of credit history. You may also want to use it from time to time for gas and then pay it off in full so HSBC doesn't close it due to inactivity.

[timbuckley10]

If you've had since you wear 18 definitely keep it! Especially since it has no balance that can look great for your FICO score. As far as that astronomical rate goes, contact the card holder to see if you would be able to approve for a lower rate since it has no balance. It is worth a shot at least.

[ams]

I would call the credit card company to negotiate for a lower interest rate since you are a customer in good standing. I definitely would NOT close it for the reasons many have already stated. BUT, I would use it once or twice a year to pay for something you would normally buy (i.e., groceries, gas, etc.) then pay it off at the end of the month.