Close these credit cards?
October 24, 2012 2:31 PM Subscribe
Credit cards - which to keep open, which to close?
posted by sunshine37 to Work & Money (10 answers total) 4 users marked this as a favorite
I have read on askme and elsewhere that it's good to keep $0 balance credit cards open, both for a higher debt to credit limit ratio and for a older average credit card age. But, what about cards opened more recently that I no longer use?
In February of this year, I opened 3 new credit cards with a total combined limit of $17,000 (see my previous questions if you're curious as to why I opened these cards). I have now paid off all balances on the 3 newer cards except for around $3k remaining on one with a limit of $9k. Should I close the other two (and close that one once I pay it off)? They are obviously bringing down the "average age of open lines" component of my credit score and will possibly get closed by the issuers anyway due to lack of use. But, is it worth having a larger credit to debt ratio? I only have 1 other card, which has been open since 2005 with a limit of $7,500 that I use and pay off every month (about $1000 a month). I find things much easier and simpler to just use this one card every month, rather, than charging a little to each just so they don't get closed. But, I don't want to harm my credit score, especially if credit card companies don't close inactive accounts very often. Advice?