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Accord1234




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191 posts [100%]
Staten Island Ny
1-17-2008
  Credit Profile« » Reply  Edit


Is it bad to close out charge cards that you aren't using or just lower the limit to like nothing and throw away the card? Thanks



05 Accord Sittin On 18's. WOAH
(Amsoil Dealer) Using Amsoil 0W-20.



Token Blk Guy
Honda-Tech's Financial Advisor



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1866 posts [101%]
Money and Investing Moderator, Sacramento Ca
4-26-2002
 « Re: Credit Profile (Accord1234)« » Reply  Edit


Quote, originally posted by Accord1234 »
Is it bad to close out charge cards that you aren't using or just lower the limit to like nothing and throw away the card? Thanks

Yes I'ts bad to close accounts that you have had open for a long time. Its better to just cut up the card and not use it, keep the account open. Long credit history will pay off in the end. I wrote more on this in the FAQ thread



Transamerica Financial Advisors
Insurance, Investments, Retirement, Advisory Services
Ca Lic# 0G23657
http://www.sevafinancialadvisors.com

GoLowDrew
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7143 posts [101%]
Xanadu
1-26-2000
 « Re: Credit Profile (Accord1234)« » Reply  Edit


I would differ in that I would cancel any and all accounts I don't use. Open cards that you forget about could open you up for liability, if it somehow gets stolen. Sure, you can report it and not be responsible. But why go through the trouble.

Building credit is good, but credit is useless if you don't have the cash to use the credit. And credit is often dangerous, and can get people into trouble.

As a young person, you may be different. Maybe you are setting up to buy a house. Don't know.

I would keep your finance simple and get rid of cards you don't use, and keep only one that you do. Most cc companies are very generous with their limit. If they won't increase it to fit your needs, you probably don't really need it.



Eddie would Go!

Accord1234




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191 posts [100%]
Staten Island Ny
1-17-2008
 « Re: Credit Profile (GoLowDrew)« » Reply  Edit


I like both of your responses. What Token Blk Guy said makes a lot of sense cause open accounts will build up credit history but as GoLowDrew puts it, to me you coud forget an account is open and to much credit leaves room for theives.



05 Accord Sittin On 18's. WOAH
(Amsoil Dealer) Using Amsoil 0W-20.

chads




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2621 posts [98%]
Oregon
11-29-2003
 « Re: Credit Profile (Accord1234)« » Reply  Edit


it really is not that bad just dont close a bunch all at once. keep in mind having lots of credit cards can also hurt your score even if you dont use them.



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BEE1




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1722 posts [100%]
San Diego
10-1-2003
 « Re: Credit Profile (chads)« » Reply  Edit


is it true if a credit card has not been used in 6-7 years, the credit card company will close the account? i read this somewhere...



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Token Blk Guy
Honda-Tech's Financial Advisor



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1866 posts [101%]
Money and Investing Moderator, Sacramento Ca
4-26-2002
 « Re: Credit Profile (BEE1)« » Reply  Edit


Technically they are not suppose to close accounts without the card members consent, but some companies still do it. I would say if you havent used it in a while just go buy a case of beer or something to show activity. Some CC companies will also stop reporting to the agencies if you cease card usuage. this is rare but it does happen..



Transamerica Financial Advisors
Insurance, Investments, Retirement, Advisory Services
Ca Lic# 0G23657
http://www.sevafinancialadvisors.com
   


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