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Closing Credit Card Accounts

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FastGT
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Closing Credit Card Accounts  Reply with quote  

Hi wveryone, Im new to the forum and thought maybe you guys could help me make a decision. I made some bad choices when I was young and didnt know any better. I currently have 5 credit of which two of them are from a bank in Puerto Rico where I used to live, The cars are:

Banco Popular Icon (Student Credit Card)
Banco Popular Novell
Capital One Quicsilver
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Bank of America Better Balance Rewards

I only have a balance on two of them( BofA and Capital One) so I dont really use any of the other ones. I want to close them but Im afraid of the impact it may have on my score since for example, the ones from PR are my oldest accounts at about 12-14 years old. What do you guys reccomend, should I just close them, stay with the two I actually use and just wait until my credit score levels out again? Im not planning any makor purchases in the next few years so no credit checks shouldnt be coming any time soon.
Post Thu Sep 01, 2016 2:13 pm
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littleroc02us
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Let me start out by saying that when I was young I made stupid mistakes with money, but after years of reading about successful self made millionaires, I have completely turned my lief around finanacially. As far as my wife and I, we have 2 credit cards and only use 1, we have a mortgage an investment duplex, index funds, 401k's and 529's. We have no revolving debt and only mortgages on our primary and investement property. Our credit scores are over 800.

So my advice is that if you don't plan on borrowing money, I would cancel 3 of your credit cards. Yes your score will take a hit, but in a few years as long as you keep a low balance or no balance and pay on time, your credit score will rebound greatly. There is absolutely no reason to keep that many cc's around.

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Thu Sep 01, 2016 7:19 pm
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ArtsMoneyTalk
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even though you don't plan on making any new purchases, you generally don't want to close credit card accounts. if you do need a good credit score in the future, you might regret closing since it'll take a long time to build that history again. 12-14 years credit age is very good. just keep them open but don't use them often, maybe once or twice every few months so they don't close them for you due to inactivity.

hope this helps

you can find me on YouTube if you have other questions
https://www.youtube.com/playlist?list=PLXHsu9lzMeA01AoCrDMgXw_CgPyCq6aG4
Post Fri Sep 02, 2016 7:38 am
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