To close or not to close credit cards?

October 6, 2009 1:42 PM

DH has opened multiple credit cards with me as an authorized user. We just paid them down to a $0 balance and I want to know how many we can close without hurting our credit. My guess is closing the c/c will impact his credit score and not mine.
posted by Tubman to work & money (8 comments total)

Who is DH?
posted by mr_roboto at 1:46 PM on October 6 [4 favorites has favorites]

DH=Dear Husband?
posted by ShadePlant at 1:48 PM on October 6

Yes. DH = Dear Husband. :)
posted by Tubman at 1:50 PM on October 6

How may cards are there total? Does he have other cards in his name only?
posted by runningwithscissors at 2:01 PM on October 6

Closing a line of credit will always hurt your credit score, unless you have an absurd number of credit lines (approx 50) open. Your credit score is higher the more credit you have extended to you, and if you have only a small percentage of your credit utilized. Closing a card reduces your existing accounts, and means that existing debts take up a larger portion of your available credit, thus leaving your credit score lower.

Just cut up the cards, monitor your credit report to make sure no one else is making fraudulent charges, and let the accounts stay at zero.
posted by Lifeson at 2:02 PM on October 6 [1 favorite has favorites]

Addendum: for a very short while in 2008 it was true that your credit score would not be affected. That decision was reversed, so closing these lines would damage your score as well, but not as much as DH.

Also, Credit Karma has some good free tools to experiment with what would happen to your credit score if you add, remove, or modify your existing credit lines.
posted by Lifeson at 2:09 PM on October 6

Just cut up the cards, monitor your credit report to make sure no one else is making fraudulent charges, and let the accounts stay at zero.

Unless, of course, the cards have yearly fees. In which case you should just close the fuckers and take the credit ding.
posted by Netzapper at 4:29 PM on October 6

Um, careful cutting up the cards... If you leave the accounts dormant you risk having the cc company close the account for non-use. Happened to me with a bunch of cards I had.

Discovered that little factoid after AMEX discontinued their Line Of Credit program a year ago which left me scrambling for alternate sources for funds.

Keep the account open/active by charging a monthly bill (like electric, water, phone) to it. Even an annual charge or two will usually keep them open.

FWIW, I do believe if they close your account it'll hurt your score more than if you close it yourself.
posted by jamesalbert at 5:42 PM on October 6