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Is it better to close an credit account or just leave it open?

I will not use it anymore, I lost lots of weight, and it is paid off. What is my best option??

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Asked by KFree907 at 10:26 AM on Jul. 13, 2010 in Money & Work

Level 20 (8,947 Credits)
Answers (10)
  • Close it. The more accounts you have open, even with no balance, the lower your credit score is because you have a bigger credit line.

    Answer by Jademom07 at 10:28 AM on Jul. 13, 2010

  • I have been told just as long as there is a low balance.... it is fine to keep open. But I like to close if I am not using it cause it is tempting..

    Answer by juju0707 at 10:30 AM on Jul. 13, 2010

  • Keep it open; closing it actually hurts your credit. It is better to have it open and keep the balance very low; The credit companies would rather see that you have available credit than none at all. DH and I have been trying to get our credit scores up for the last year and we have made this mistake in the past!

    Answer by C_Kight at 10:34 AM on Jul. 13, 2010

  • Agree with "C Kight" it better open with low balance.

    Answer by Cassandre at 10:41 AM on Jul. 13, 2010

  • Reading this response makes sense as well what the other ladies have said. 


    Answer by musicmom08 at 10:41 AM on Jul. 13, 2010

  • I've heard it's better to keep it open because creditors took at the credit you've used in comparison to the credit you're using. If you have a balance, even a low one, that's credit that's being used and isn't available.

    That being said, I have closed two accounts in the past simply because I didn't like the customer service the bank handling the card was giving. In those cases, I voluntarily took the ding to my credit because my credit score is high to begin with and because poor customer service is a deal breaker for me.

    Answer by HotMama330 at 11:19 AM on Jul. 13, 2010

  • We're in the process of buying a new house, our loan guy told us that keeping accounts open with low balances is buiids your credit. If you use the account every month for something small, then pay it in full when the bill comes....big points. Shows you pay like you should and you don't go overboard with the credit you've been given.

    Answer by how_reb at 11:44 AM on Jul. 13, 2010

  • I've head the same as what C_Knight said. Keep em open, if you use them, pay off the balance. This way you have a solid credit history.

    Answer by cwahmommie at 4:38 PM on Jul. 13, 2010

  • my hubby and i are looking into buying a house and every lender we talk to said if you have a good account like that its best to keep it open and use it like to get gas and pay it off right away but right when you close it your credit will lose what you build with that card

    Answer by neonangel2188 at 8:08 PM on Jul. 14, 2010

  • Leave it open. One of the things that your FICO scored is based on is your debt to credit ratio. If you are looking for financial advice, I would highly recommend Suze Orman on CNBC. She has great advice and answers questions like this one all the time.

    Answer by sherribeare at 4:22 AM on Jul. 15, 2010

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