Do you close CCs after they are paid off?

[ourfirsthome]

Hello,

My wife and I just finished paying off all of our CC debt which was about 22k on 6 different cards. Our next plan is to sell our current home and buy a new one once our student loan debt is paid off.

Our question is should we close our credit cards because they are all paid and we dont plan on using them anymore or do we keep them open and why? Also is there anything else we should be aware of? We are just trying to have our credit scores in top shape by the time we go looking for a new home in a year or two.

Thanks!

[cschin4]

Yes. Wht have more than 1 or 2 Ccs? I only need one bill a month not 6. I closed all my ccs but my visa. And I don't much care about my credit score. When you property take7 care of finances that will take care of itself.

[NetSkyBlue]

Since you are going to be concerned about your credit score in the near future, it would be better for that if you were to leave the cards open. It will show you have a better ratio of available credit to debt.

As long as you're certain that having them open won't tempt you to use them.

[disneysteve]

Having them open helps your credit score because it improves your credit utilization ratio (how much of your available credit you are using). That does not mean, however, that you can't chop the cards to bits and throw them away so you aren't tempted to use them.

[cooliemae]

On the off chance that I get a card with an annual fee, I close that account immediately after I've completed using the card for whatever reason I got it (usually for the bonus offer). However, if the card has no annual fee, I just leave it alone, perhaps using it once every other year just to keep it from being closed.

[Petunia 100]

I generally only keep my favorite rewards cards open. Other cards I close once I have earned my bonus and paid my bill.

[ourfirsthome]

How much does your score change if you would close all of your cards? Would there be a way to keep your score high without them? Also, after the new home purchase would you recommend closing them?

[disneysteve]

How much does your score change if you would close all of your cards? Would there be a way to keep your score high without them? Also, after the new home purchase would you recommend closing them?

There is no way to know exactly how much your score will drop when you cancel each card. Part of it depends on how long you've had each card as the age of your credit history is important. Part of it depends on the credit line on each card due to the utilization ratio I mentioned earlier.

After the home purchase would be the time to cancel unwanted cards. If there is a card that you've had for a long time and it has no annual fee, I would keep it to maintain the length of your credit history.

[ourfirsthome]

Ok great. Thanks for the information. This helps us a lot .

[figuringmoneyout]

In the past I did but I currently have 2 paid off cards I keep open just in case and to keep my credit score high.