TO CLOSE OR NOT TO CLOSE (YOUR CREDIT CARD ACCOUNT)

I just paid off my highest interest credit card that I’ve had for over 10 years. I hear different things about closing cards completely—mainly that it would lower my FICO™ score to close it. What is your take on this?

Thanks!!

To Close or Not to Close

Dear To Close or Not to Close,

I get this question a lot. It seems like it would be obvious to close your credit card account if you’re not going to be using it once it’s paid off but turns out, you actually should not close your credit card account. Credit scores consider factor such as how long you’ve had a credit card as part of how they evaluate what score you should be given. That means that if you close your credit card, paid off or not, that your credit score could get dinged. So, to answer your question, I would not close it. Don’t use the card, but don’t close it. So just go ahead and forget you even have it– except for when you review your credit report once a year.;)

Anna

What steps have you taken to get your credit card debt under control? 

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