Credit card closed vs open with a 0$ balance, which is better?

Question

is is better to close your credit card or keep it open with a 0 balance?

Answer 1

When I was talking to a mortgage broker, she said that my credit card I kept a zero balance on was better for my credit that over 4 years of rent paid on time as well as paying off multiple small loans.  Keep it, use it for small purchases you can pay off a few times a year, and it will only work out well for you.

Answer 2

Keep it open as long as there is no annual fee because its better for your credit score if it remains open.

Answer 3

An open line with no balance due is way better for your credit, than one you closed.

Answer 4

Agree with first answers.  By having it open, you lower your balance to limit ratio, which increases your credit score.

Answer 5

Open with a zero balance is best. You are building your credit *history*. The longer lines of credit are open, the more appealing you are to creditors. Make sure to use the card occasionally and carrying a balance every now and then wouldn't hurt.

Answer 6

I've been told that keeping it open with a zero balance is better, particularly if you ever had any negative comments on your credit.  If  you have a great deal of credit equity, that might not be true, but for the most part, it is supposed to be positive if you have paid it and it has a zero balance.  

If you really do want to close it out, cut it up so you can't use it and when they start to renew it, then cancel it.  But if  you have any negative or slow pays on it, keep it open with zero balance for at least 6 months or more.

If the card would cost you money, like an annual fee, then  you have to consider whether or not to close it not to incur the fee.  Then I'd suggest you see about switching it to one without the fee or closing it if you have a postive credit rating from that account.

Answer 7

open with 0 balance just in case of emergency,

Answer 8

open with a zero. you can still use it and pay it off, which still helps your credit.