Clayton Claw Cleaver Clementine: advice on paid off credit card?
have a gas credit card that is now at 0 balance. haven’t used it in months and don’t plan to use it again. so my question is, do i close the account? or leave it open just in case of emergency or maybe want to go on vacation this summer but not take extra cash for gas. and if i do close it, how does that show up on my credit reports?
Answers and Views:
Answer by Age of Reason
Personally I would cancel it and take the small ding to my credit. This is not a problem if you are not planning applying for a loan. Otherwise just shove it in a drawer and forget about it
Answer by Five Fingaz
closing off a credit card regardless of balance is a no no.
Keep it but dont use it for six months and they will close you out at no expense.
Increase your credit by using the card occasionally and paying off it right away.
Answer by FletchBFriedN
I think the best thing to do would be to leave it open and use it! You put gas in your vehicle on a regular basis, right? Use the credit card for gas, and then write it off in your checkbook. When the bill comes in at the end of the month, you’ll have the money to pay it off. Doing things like that will actually help your credit score out.
Answer by Uncle Pennybags
Leave it open. Contrary to logical thought, closing an account harms your credit score.
If you want to keep it helping your score, buy a tank full of gas once every 2 or 3 months, and then pay it off in full each month.
Answer by Judy
Don’t close the account unless it carries a fee.
It hurts your credit in two ways:
– It may be your oldest card – if so, it will erase “length of credit history” 15% of fico.
– It will reduce the unused available balance – a number creditors look at.
As long as your credit is good – they will not close the account.
Start fouling up by carrying high balances on your other credit cards – and then they may close it.
Remember for top credit – pay all cards in full each month.
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Answer by Larkie
How old is the account and how much credit do you have on it? I don’t expect answers (it’s none of my business) but the answers will tell you how much it can potentially damage your credit score if you close the account.
If the account is older and you close it, your credit score will take a bigger hit than a newer account. If you have a large amount of credit associated with the account and close it out, it will increase your debt to credit ratio and also potentially damage your credit rating. I know of people who closed out old credit card accounts with high limits who took a double digit hit to their credit scores.
There is always a risk that the creditor will close the account for dormancy, so a general rule of thumb is to keep the account open and use it periodically for small purchases.
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