Is it better to close your credit card account, or just not use it anymore once you pay it off?

Question

I have 3 credit cards and I'm only 20 yrs old. I don't have bad credit or anything I was just thinking of paying off the one with the highest percentage rate... once I do, should I close the account? Or would it be better to just not use it anymore but leave the account open?

Answer 1

I did this mistake and now I'm regretting it, it shows better on your credit if you have at least 10-30% usage on your cards, never close your cards and do not get alot of store cards one or two are ok.  They want to see that you can use your credit wisely, and that you can have it there just incase of emergencies.

Hope this helps!

Answer 2

Do not close any of the accounts, keep them open and use them for every day things, never exceed 30% of your credit limit and pay them off in full before the due date and your score will shoot up quickly.

Answer 3

Most definately DO NOT close the account.  It all has to do with debt to credit ratio.

debt/credit lines=ratio

The lower that ratio the better. Having a big credit line helps.

Answer 4

Check out http://www.ineedrates.com

Answer 5

use it periodically .... every couple months and then pay it off.  At 20 you won't have much credit history so it would be better to keep it open.

Answer 6

Best to leave it open and don't use it....looks better on your credit score.

Answer 7

Definitely better to leave it open and use it periodically but always pay it off.