closing credit cards

[LivingAlmostLarge]

Does anyone know how much a credit hit I will take closing down credit cards? I was thinking of streamlining and closing a bunch of accounts I never use and haven't used in years. I might be applying for better credit cards.

What credit cards do most people have?

[cooliemae]

I have cards that run the spectrum (chase, usbank, barclays, citi, etc.). If you don't keep balances on your cards I wouldn't worry too much about closing them. The biggest hit to your credit score will come to an increase in the debt ratio.

I would suggest you slowly close cards down and not to do it all at once. I'm not sure about other companies, but if you have multiple accounts with Chase you can actually transfer the credit available to card 2 if you want to close card 1. This way you still maintain the same debt ratio. This may work for other companies as well.

[creditcardfree]

For you LAL, it isn't going to be significant. If it were me, I might apply for cards first then close the other cards, but I either way shouldn't be a big issue. I have some I need to close too!

[Like2Plan]

I haven't noticed a significant change in our credit scores. I try to close one for every new one we open. There are tons of tempting offers out there, but I try not to open any more than 1 or 2 new CCs per year.

And, I sometimes hold onto to the cards longer than I figured I would. I select cards that provide an additional benefit. One card I just can't bring myself to get rid of has an annual fee of $49.00, but you also get a free night at any of their hotels along with upgraded status (with which we have received loads of upgrades throughout the year).

Sometimes, a card doesn't pan out. Like one of the airline cards we signed up for which waives bag check in fees. But, DH and I almost always do carry ons. We still haven't been able to schedule a flight to use the points we earned. (No flights available for when we wanted to fly, etc). They card also included a couple of passes for their airport lounge access, but the lounge benefits were pretty lame (translation: we didn't like the snacks they served in the lounge ).

[LivingAlmostLarge]

I want to buy a house in the next 12-24 months. So I figure we should try to keep the credit scores above 800. But my DH is a minimalist and is trying to get rid of as much paperwork and credit cards. He doesn't care about chasing rewards. He just wants the minimal amount of credit cards and hates switching. He wants one visa, one mastercard, and discover or american express which we've had because of costco. He doesn't want more than that. So we've had tons we've opened through the years and some we've not used in years and some have closed and they are in a box I have to go through and cancel and close and then shread. But I'm wondering what happens if I just sit down and do it? Is that the best answer? Will it hit our credit?

Also I want to this year start looking for new cards but not ready to chase any rewards until we are in a home and have a bit more time and space.

[msomnipotent]

Credit Karma has a calculator that will tell you. I'm not sure about you, but most of my credit cards also have free credit scores and calculators. The Amex we have through Costco has a credit tracker, so you probably have one too.

[bjl584]

I closed a card recently. My score took a 10 point hit, but it came back in about 2 months.

I opened a store card to take advantage of a 0% offer, then closed it when the balance was paid off.

[snafu]

Doesn't the major factor revolve around no more than 30% usage of available credit? Are any inactive cards nearing expiry date? I'd start with them so long as not the very 1st CC. I understand DH's reluctance to 'juggle' cards, solved by ensuring he only has one ea. active Visa, MC, AMEX in his wallet at any one time. Taking advantage of promos is better than getting a raise [for those who carefully pay balance by due date] since there is no tax consequence.

[creditcardfree]

I closed a card recently. My score took a 10 point hit, but it came back in about 2 months.

I opened a store card to take advantage of a 0% offer, then closed it when the balance was paid off.

I would guess this is probably true for each card you close, about 10 points for a few months.

LAL, I would just get it done all at once. Fewer cards is easier to deal with when applying for a mortgage. Less to explain...if they even ask. Good plan to skip the reward chasing until after the loan closes.

[Gustan Cho]

Closing Credit Cards

I would not close out any older seasoned credit card accounts. Creditors will look at the longevity of revolving credit tradelines