I am in the process of paying off my credit cards...I have cut them all up except for the card I am going to keep for emergencies...I have 4 major credit cards and 3 stores cards...how many of these cards should I keep...I have a student loan which I am paying and also a car loan...so basically what I am asking is how many of these cards should I cancel after being paid off? I do not want to cancel too many but I dont want to leave too many open either...what is the correct mix to have open.
Assuming you are not an unrepentent pathological CC abuser, manage your accounts to your best advantage, to meet your goals obtaining good credit for future uses such as home purchases on good terms. Also you want to maintain accounts with multiple companies, to be able to travel, etc. CCs also provide you a layer of protection when doing business with companies you don't know. General purpose cards (MC, VISA) are probably more competetive, and more useful, than store cards. Store cards sometimes have discounts to get you to use them, but what are you going to do, spend money you wouldn't otherwise, just to get a discount? You want to build up a long history of on time paying. You want low balances compared to your available credit, and limit carrying balances to when it pays to do so. You want CC companies to want to offer you credit on good terms, and never need to accept less than good market rates. Deal only with reputable companies. Phase out and close accounts with companies offering poor terms, predatory behavior, or who you outgrow and won't increase your CL as your income and ability to pay and manage credit increases. Get credit when you don't need it, so it is there when you do.
