Why is it a bad idea to close credit cards?

[Big Empty]

I have a few credit cards all zero balances but i have one large one that i pay down and then run it right back up like every 2 years. So im gonna close all cards n leave a small one open. But i was told it reduces ur credit score and looks bad. Why? Is this kinda like the oil myth where ur told to change it every 3000 miles vs 6 so the oil companies keep their sales up? Thoughts?

[ChumpDumper]

No, it's real. Use the other ones a couple times a year and pay them off immediately. For whatever reason, you're seen as a better credit risk if you already have credit and don't really use it.

[Latarian Milton]

it was a bad idea to open a credit card to begin with.

[Wild Cobra]

Just keep the cards, make a purchase every six months and pay if off immediately like Chump says. Take it to heart. It's very rare that Chump and I agree.

Part of what makes your credit rating is the percentage of debt you have vs. total credit available. A near zero credit card debt and lots of available credit looks pretty good.

Now I don't know how accurate it is, but my understanding is these companies can charge you a maintenance fee if you don't use the card, and it remains in limbo. That's why I say make a purchase every six months.

[Latarian Milton]

use it once in 6 months ain't enough to exempt you from the annual maintenance fee. have to use it 3 something times a year at least. you can swipe your card at the same shop 3 times within minutes and that card is free from maintenance fee for the year, but never swipe it 5+ times at the same shop in a short period of time because the credit card company would probably suspend your card (until you make a call and ask them to unlock it), which would definitely affect your credit score imho.

[Wild Cobra]

Who would get a card with an annual fee?

[Latarian Milton]

somes tips that may help with your credit score:

1. only use 10%-20% of your credit line and pay it off in time

2. don't swipe it at the same shop too many times within a short period of time because in this case the credit card company would suspect that you use robot to spam their system, and would suspend your card as a result

3. might be rare but you also gotta be aware, don't pay the exact same amount using your credit card at the same shop too many times. say you may buy a bag of pickles for $100 at the same store every week, or every a few days, and you don't buy nothing else from that store so the total cost always appears 100 on the bill time after time, then chance is the creditcard company would suspect you of cashing-in, and lower your credit score.

4. don't use your credit card as a debit card or something you usually store your $ in. it doesn't hurt your credit score by storing extra money on your credit card and using your own money instead of your credit line, but it'll not do no good to your credit score either.

5. try not to use your credit card purchasing online because it might endanger your money and your credit. fishing websites can steal your entire credit line ONLY if they know your card # and iccid

6. better not use your credit card to pay any fees, like tax and tuition.

7. the old & golden rule, don't leave your credit card in a BITCH's hand

used to work at a credit card company myself and those are the only things i learned while working there. im already off that shitty job and prepared for grad school next semister, and to be quite honest im not a big fan of credit card & card issuers. if you're a brokeass student like me, there're two things you should always stay away from, one is BITCH and the other is credit card

[Big Empty]

Ok thanks guys. I think im gonna have to cut out my quarterly scholarship i like to give away at Sugars. I dont like to touch my saving accounts for anything when i go over my budget i set aside i like using my credit card lol bad habit.

[Brunodf]

it was a bad idea to open a credit card to begin with.
This.

[fraga]

It's called credit history...the longer you have credit the better...when you open and close credit cards it looks bad on your credit report...creditors love to see that you can not only pay your bills on time...but they love to see that you are able to build good credit over time...

[Spur|n|Austin]

You're really only supposed to change your oil every 6 months?!?

[CosmicCowboy]

it was a bad idea to open a credit card to begin with.

I love my Chase Freedom card. I put everything on that bitch that doesn't charge a fee to use it and pay it off every other week. That little blue card makes me $1000 a year free money.

https://creditcards.chase.com/freedom/LearnMore.aspx?CELL=6RRW&MSC=IQ17411941&jp_cmp=cc/03BRFreedomExact/sea/na/ChaseFreedom

[Big Empty]

I love my Chase Freedom card. I put everything on that bitch that doesn't charge a fee to use it and pay it off every other week. That little blue card makes me $1000 a year free money.

https://creditcards.chase.com/freedom/LearnMore.aspx?CELL=6RRW&MSC=IQ17411941&jp_cmp=cc/03BRFreedomExact/sea/na/ChaseFreedom
the problem with it now is i cant transfer money to it to immediatly pay it off anymore now for like 2 months. i used to buy something and immediatly go to my iphone and transfer money to it.

[CosmicCowboy]

the problem with it now is i cant transfer money to it to immediatly pay it off anymore now for like 2 months. i used to buy something and immediatly go to my iphone and transfer money to it.

I haven't had a problem paying mine online. It doesn't give me the actual transfer confirmation until the next day but it makes the funds available immediately.

[The Reckoning]

meh i just stick with my wells fargo credit card. they keep upping my limit every month because i pay it off. easy shit.

[Spur|n|Austin]

meh i just stick with my wells fargo credit card. they keep upping my limit every month because i pay it off. easy shit.

Same here, I'll keep in good standards with them and use them to finance my home one day.

[CosmicCowboy]

Same here, I'll keep in good standards with them and use them to finance my home one day.


LOL

Wells Fargo Mortgage could give a shit if you have a Wells Fargo credit card.

[Spur|n|Austin]

LOL

Wells Fargo Mortgage could give a shit if you have a Wells Fargo credit card.

Did you really laugh out loud? If so that's pretty pathetic. I could see someone LOL'ing when a "cowboy" brags about a salad he made, that's worthy of a laugh out loud. "OMG!"

Thanks for the solid insight and help though; I'm a year or so out from buying my first home, and figured if I maintained solid credit with them, they would look positively on that when approving my mortgage. I'm lucky enough to have USAA, and may just go with them, as their rates are pretty awesome.

[CosmicCowboy]

Did you really laugh out loud? If so that's pretty pathetic. I could see someone LOL'ing when a "cowboy" brags about a salad he made, that's worthy of a laugh out loud. "OMG!"

Thanks for the solid insight and help though; I'm a year or so out from buying my first home, and figured if I maintained solid credit with them, they would look positively on that when approving my mortgage. I'm lucky enough to have USAA, and may just go with them, as their rates are pretty awesome.

No, i didn't actually LOL I just snickered that you actually thought Wells Fargo would give you preferential treatment on a mortgage just because you had a credit card with them.

Whoever you do your loan with will flip it to FHA or Fannie or Freddie. They are the ultimate shot callers on rates. The difference you will find between lenders will be on origination fees and closing costs.

[DPG21920]

People make too big of a deal out of this. Unless you are in a situation where your credit in real time is ultra important (buying a home..), you can close the cards you want. If you just want one card, close the rest. As long as you aren't on the bubble credit-wise you will be fine. Will it ding you? Probably, but not so bad that it will ruin great credit.