I have a credit card question?

Question

So, I have all these different kinds of store credit cards. And I'm thinking about paying them all off and then closing my account and just have one main credit card that I can use to purchase whatever.

Do you think that is a good idea?

Answer 1

Paying off is a real good idea, because no more interest of course.

If you close down the cards, that will reduce your total credit availability and reduce your credit score.

If you close down your oldest credit card that will show your credit history to be shorter than what it really is.

So it will impact your credit score a bit. But if you find that you give in to temptation and spend on credit cards when you shouldn't (like me). Close the card and don't worry about the credit score

Answer 2

Yes,it is a great idea. Closing the accounts after they are paid off,do not affect your credit score. If you will close them first without being paid off,then it would decrease your score.

Leaving the accounts dormant(open,with no activity and 0 balance) would also damage your score.

Answer 3

As you said yourself, if you have 1 major credit, why use dept store charged? You should close them all except your 2 oldest retail accounts. Just make sure you write down the 2 dept stores with the account numbers. Why you ask? In the event that you move, you'll have to notify those 2 dept stores when you moved  although they are not being used. Better to be safe than sorry later.

Answer 4

No, since each time you close an account, you lower your credit score.  Pay them off and leave them dormant.