Should I close my credit card?

Previously I had 2 credit cards. One that I would use for everyday purchases and a 2nd one that I used just for gas (since I got 2% cash back for this). But I just opened a third card because it had even better rewards (3% cash back). SO in other words I now no longer have a need for my second card and will never use it again. Is there a point to keeping it open for my credit score???

Also I%26#039;ve seen in other answer people saying yes because of the debt ratio will become narrower. But I pay my cards off every month and my limits are as follows:

Primary Card : $36,000

2nd Card: $1,500

New Card: $3,000

So esentially closing my $1,500 limit card shouldn%26#039;t effect anything since my new card has an even higher limit and I have a $36K limit on another one. Am I thinking about this right or is there any point to keeping open my 2nd card???

Should I close my credit card?

I agree with the 3rd poster, however he has the percentages of how your score is computed wrong:

1. Payment history-35%

2. Debt to available credit ratio-30%

3. Average age of accounts-15%

4. Types of credit established-10%

5. Inquiries and New accounts-10%

Now while closing the account wouldn%26#039;t hurt the ratio of available credit to total debt you have, what it could possibly do would be decrease the average age of your open accounts. Let%26#039;s say that the you have the primary opened for 4 years, and the 2nd one for 3, the average age would be 3闄?years between the two. Let%26#039;s say you cancel the 2nd one and open the 3rd one, then the average age would be around 2 years. So, with that said cancelling that card even though it has a smaller credit line, it can can still affect your score. Also, keep in mind that when you initially applied for that 2nd card, a hard inquiry was created which dropped your score, and it took some time for it to go back up once you started developing payment history, so it would be a waste of time to close the account. Credit is designed to be used over time, especially credit cards. If you%26#039;re %26quot;reward hopping%26quot; then you should really be careful on opening up accounts just for the perks. If you%26#039;re planning on getting a credit card, make sure that you%26#039;re going to use it for quite a while, and if you%26#039;re going to close it, make sure that it%26#039;s a good reason. Otherwise, you might do more harm to your score than you think

Should I close my credit card?

it all goes to your debt to income ratio.... some say its better to have more credit...some think its better to have less.... if your credit is good... i don%26#039;t think it really matters...as long as you have them payed off as you said..... don%26#039;t let your debt to income ratio get to out of control.....

Should I close my credit card?

Close it. You will also be better able to manage your finances that way.

Should I close my credit card?

No, dont close your credit card. 35% of your credit score is based on the percentage of available unused credit reporting on your credit report. the next 30% of your score is calculated on the history, or length of time the account(s) have been opened. the rest is based on type and a couple of other factors. you should check out www.myfico.com for a full break down on scoring factors.

bottom line is that it is overall better for your credit rating to have open unused accounts reporting than not. algorithyms used to caculate your credit score take into consideration the difference between what you owe and your total combined credit limits, so, use your charge card and pay it off each month, carry a low balance if you have to, but keep all accounts open and active and your credit score will climb.

in regards to one of your previous points, its always good to have a spare secondary credit card account in the event you have an issue with your primary card. lost/stolen, computer down or unresolved billing issues... that way you always have a emergency backup. as long as they arent charging you an annual fee to keep the card opens, dont worry about it.

Should I close my credit card?

Your Credit Score is a pretty tricky issue. There are many factors that goe into the scoring model including the Length of Time You%26#039;ve had a trade line. In other words, by closing a card that is older you may actually lower your score even though the amount of available credit will only be altered slightly.

Should I close my credit card?

I didn%26#039;t read the whole question. Keep all your credit cards. Don%26#039;t want to use a credit card? Tear it up, but don%26#039;t close the account.

Suze Orman knows all about this. Looks like you have about 40 thousand worth of credit. You cannot get credit back if you lose your job. You may need that credit. Join storeonwheels in yahoo groups for more money information!