Credit card quest/opinion- quick help needed!!

[Albies5]

Hey guys- i was wondering your thoughts on this:
I have some credit cards that i opened a little while ago- for a one time purchase and i dont plan on using them again. I have my main ones (that are always paid in full) but some of these were opened for the bonuses and stuff...i know i know... anyways my question is :

is it better to close them all even though theyve all been opened for less than a year or just keep them opened but inactive? And if so for how long?

I guess in terms of credit score and everything and damaging my credit.

Thanks!!!

[rooskers]

I am no expert on how the credit scoring works but I can tell you my opinion. Are you planning on taking out any big loans soon that you need to care about possibly a minor drop in your credit score (don't know that it actually will drop but you might want to ask yourself this)? I have opened a sears card for 10% off on a refridgerator, credit card for 15% off on a new sofa, and my wife did one at one of the clothing stores in the mall I forget which one. After we paid off the credit card (never paid a dime in interest) we knew we were not going to use them again. So now we had two choices closing them or leaving them open. I am a tad nervous about identity left especially in the case of credit cards that don't have a theft protection on them limiting your liability and I could not find that protection in the details of those cards. (I had a friend who had there purse stolen and a huge dept was racked up on her JC Penney's card and she is still fighting it 1 year later) We decided to cancel each one after we paid it off and not take the risk that somehow it would be stolen especially since we didn't really plan on using them again. This happened over a period of about 2 years. Now for the conclusion our credit scores were around 790 both DW and myself after all this our credit scores are around 815.

[buzz]

The new accounts and inquiries dinged your score bit.

- The inquiries will remain, though they supposedly do not affect your score once they are a year old.

- I can't say if closing a new account will nullify the affect of opening it. Logically it should, but FICO is anything but logical.

- Opening the new accounts also lowered the average age of your accounts. Closing them should restore the points you lost.

- The new cards would help to lower your total % utilization if you carried a balance, but since you PIF, there is no advantage here.

[disneysteve]

The new cards would help to lower your total % utilization if you carried a balance, but since you PIF, there is no advantage here.

This isn't quite right. Even if you pay your bills in full each month, the utilization ratio is still a factor. When your credit report is checked, it will show a balance on your CC even if you pay in full each month unless you recently paid the bill and have not charged anything else to the card. I know my account never has a zero balance as the card is used nearly every day. By the time I pay last month's bill, I've charged another $1,000 or more on the card in the current billing cycle.

[buzz]

Thanks for the correction dizz, you are absolutely right.

[loanstar]

i think it all depends on how many you have, ideally you shouldn't have too many. if you decide to cancel some, its better to cancel the newer ones because the old ones you have a longer credit history with.

[Ima saver]

I would just leave them open. Cut up the cards if you don't plan on using them again.

[trainedmonkey]

I would personally close any CC accounts you are not using. Why have the potential out there that somehow, somewhere, someone can get ahold of the number and help ruin your credit.

Also having multiple cards open can affect your credit score since part of the equation is outstanding lines of credit (how much potential credit do you have open?). You could have the credit limit on these cards reduced but why do it on a card you may not use again.

I hold 3 cards (2 rewards, pay in full and a best buy card, gotta love no interest offers) I had a 3 card but when I recently opened a second rewards card I closed the bank CC I was holding.

[Albies5]

thanks everyone- i appreciate your thoughts. I really dont have too many cards out- i was thinking just cutting them up and never using them- but then wont new cards still come once the expiration date arrives?

what are your thoughts on opeing cards just for the instant rebates,% off ect... and then closing them when theyve been paid off. Is that silly. DH and I just bought a house so our mortgage is all set and thats really the only big loan thing involving a credit score that we're dealing with. So in the future opening cards ect... if were not taking out huge loans wont really effect anything??