Should I close High Interest Credit Cards?

[ScarletFever]

I have no balances on a couple of high interest cards, but pay high interest rates plus monthly maintenence fees. They are my only cards.The cards are paid as agreed.There would be no hit on utility as a result of no balances and no other cards,so I am not concerned about that. Positive history would remain, correct?. There a couple of 30-day lates from 3 years ago. Should I close them now, or should I acquire new cards before closing them? What else do I need to know? I understand that closing accounts hurts utility, but this is not really the case. Would it hurt my mix, if I have SL and car loan? I don't mind hoarding cash and saving on interest and fees if it means my score takes a small hit....Thanks for any help!

[FocusOnFICO]

Scarlet------I would recommend getting your EQ and TU reports from this site (using the available discounts from Google) and then check the Credit 101 and similar threads already posted on the forum to answer a number of questions that you have.

Specifically regarding your cards, it is usually recommended that you get your new cards, then close your unwanted cards---if you must.  Monthly maintenance fees are most likely not helping you.  Better to see what you can get elsewhere and prune your credit portfolio.

There are a lot of great threads on this----please peruse the Credit Card forum and key in on the searches for what you are looking for.

[ScarletFever]

Thanks  for the quick reply...I have read those posts. The majority of people are vehement against closing cc's. I'd to hear from peoples own, direct experience from doing the same, and hear opinions based on my specific circumstance...plus any other specificities and knowledge that can be imparted on me..thanks.

[haulingthescoreup]

It's not a question of opinion as to the results of closing CC's; it's just plain fact.

Closing cards won't affect your history until they stop reporting --10 years for EX and TU; any old time for EQ. This is for both AAoA and longest history.

If your balances are minimal, your util won't be affected. (Unless you do suddenly need to carry a balance.)

If you don't need fee cards any more, they're good candidates for closing.

I closed a Barclay's card with a puny CL --no discernible effect on my scores.

The authoritative thread on this is fused's "Closing Credit Cards", which is linked down in my siggy.

Nothing at all wrong with closing CC's per se. Just be aware of possible repercussions, both immediate and future. Because for most cards, once they're closed, it's a done deal.

[haulingthescoreup]

I should have thought to post this link in my reply above:

Liz Pulliam Weston: No Such Thing As Too Much Credit

Of all the personal-finance writers out there, Weston is the one who most gets it. I haven't read everything she's written, but so far, everything has been dead-on accurate when it comes to FICO scoring.

Thanks to MattH for posting this link over on Credit in the News!

[creditwherecreditisdue]

Try not to close TL's before they have been replaced. It is always easier to obtain credit when you have some as opposed to none. That being said, if you have CC's with monthly fees you need to set about replacing them!

[ScarletFever]

Thanks.. that us the type of info I need..should I app before or after...score ramifications, etc....