Post # 1
I finally paid down all of my lines of credit including a car note. Right now I am %100 debt free! Yipee!! Now I’m wondering if I should close some accounts or keep all of them open. I currently have 6 lines of credit including department store and bank.
Does it reflect better on the credit report to have more revolving accounts with no balance, or less revolving accounts with no activity. It’s all so confusing! BTW I have excellent credit already. I live in the United States.
What is your credit situation at the moment?
Post # 3
A few of your terms make me think that you’re not in North America?? I know some people are hesitant to discuss their location, but if you want accurate advice, it’s important info. For example, even between Canada and US effect on credit score by doing certain things is COMPLETELY different. Like, closing credit cards makes a Canadian score better, but from what I understand can impact an American one negatively.
Personally I have no consumer debt (just our mortgage). DH and I each have a main credit card, and then I have one for online purchases/travelling with a lower limit.
Post # 5
@Artificial-Sweetener: as PP said, if you’re in america (which is kind of sounds like you’re not), closing the accounts will have a negative impact on your credit score. it’s best to leave them open and just not use the cards. my co-worker had an excellent suggestion of literally freezing your cards. you put them in a ziploc bag, fill it with water and stick it in the freezer (it works best if you can put the bag in a bowl until the water freezes). then you won’t even be tempted to use them because it takes so long to get them out.
Post # 6
@calibee79: Oohh Good idea!… Also, yes I do live in the United States; not sure what terms I’m using to confuse people :/
Post # 7
Keep them all open.
I guess it depends on what we’re counting here. I’m in a lot of debt if you want to count my student loans. Otherwise, I have a little bit of credit card debt and a car loan.
Post # 8
@Artificial-Sweetener: I’m in the US and I leave my lines/cards open. Some will close by themselves over time which is fine. If I was just playing a game with the store to get X% off my purchase that day, I will close those cards when I get the statement. Even without debt, it is good to have some activity on your most long established cards. For example, buy your gas or groceries on your oldest cards since maintaining credit history counts in the US. I have my internet service go to a credit card every month and I have it paid automatically through my bank account.
So far it’s worked very well for me but I also keep a keen eye on my accounts so nothing falls in arrears.
ETA: Questions about your lcoation might have been your use of the “%” before the number and referring to your credit cards as lines of credit. Just my hunch.
Post # 9
I have student loan debt I’m still paying off, but that’s it!
We have four credit cards–one to a clothing store that gets used twice a year, one to a jewelry store that doesn’t get used, the card we use for EVERYTHING, and our emergency card.
Post # 10
me personally, i have a small limit credit card with not much one it, and then my student loans, a few thousand ( which i have a payment plan set up for). My fiance had zero debt before me, and an excellant credit line. currently putting everyting on his credit card and we have a house note too. so some debts.
Post # 11
OP says in her original post that she is in the USA.
Keep them all open unless there is a yearly charge. It will help establish the length of your credit history and keep the debt:credit ratio lower should you use the credit lines.
Post # 12
I have no debt! – well OK a mortgage.
I’d keep them all open, at a minimum a few of the oldest ones. Lenders look at how much debt of all your avaialbe credit you are using. When the ratio is small (tiny amount of credit being used compared to the thousands you COULD be warcking up), that is in your favor and helps your score.
Lines of credit are not the same as credit cards right? They usually are tied to one specific store rather than a card you can use at any store?
Post # 13
@Artificial-Sweetener: i think it’s because you said car note. i usually only see that from non-US bees. it reminds me of british english. 🙂
Post # 14
@crayfish: she added that in after we asked her where she is from. it was not in the original post.
Post # 15
Leave them open and use them occasionally, paying them off immediately. If you have 6 lines of open credit and you don’t use them for say 12 months, you are not using or managing credit – you just a lot open to you. Mortgage companies and banks want to see you use it and manage it, but not carry a lot of debt. If you can manage it you are an excellent low risk customer. Got that from 2 different mortgage officers.
Post # 16
@Artificial-Sweetener: I’d just never heard of a credit card being referred to as a line of credit, and a car loan/car note 🙂