I have transfered all of my credit cards over to my discover who is offering 0% financing until June. Should I close my other credit cards? I have A LOT. I have 1 discover, 2 citibanks, 1 household, 1 directmerchants, 1 capital one, 4 department stores. I have been transfering these around to better APR's. I am very happy with my 0% right now and do not plan on transfering anymore. My amount will be paid off by the end of June with the introductory offer is over. Opening all of these credit cards has hurt my overall credit score. If I close them will my credit score improve?
How long have the accounts been opened? If it has been a year or less, wait to close them. Also, make sure they are accounts you will not need for the future. If you decide to close some 1) make sure it's not your oldest tradeline and 2) don't close more than two within 3-6 months of each other. When you do close them make sure the creditor sends you a letter stating that the account was closed by consumer and it has a zero balance. You probably already knew this, but just a reminder. Dani
You may want to hold on to them, just in case your current bt is not paid in full at the end of the promo. These cards will most likely offer you additional bts that you can take advantage of at the end of your current bt offer.
Wow lots of great information. Why should you close more than 2? In addition, I like my new cards more than my older cards. My citibank I have had for 13 years(got in college) and it's my least favorite card.
Do not close Citibank. If you do you will see your score drop drastically. If you want, put it in your sock drawer and only use it to buy gas every three or four months (just to keep it active). How you manage credit and how long it has been established really affects your FICO score. If you have a card that is 12 or 13 years old it shows current creditors, as well as, potential creditors that you manage credit wisely and don't bounce around from creditor to creditor, opening and closing accounts. Also, don't close more than two accounts every few months (if you do decide to close them) because this affects your debt ratios. Example, you have six cards with a total credit line of $20000 and a total balance of $5000. Your current debt ratio is 25% (which is good). Say you close three of the six credit cards and that brings your credit line down to $10,000. Your current debt ratio is 50% (not too good). The lower your debt ratio the higher your score. Balances owed account for 35% of your FICO score. Also, remember to payoff any balances before you close the account because FICO rates this as negative. The credit line is gone, but the debt is still help. So the debt is added into your remaining open credit lines. Hope this helps. Dani
