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i have about 6 credit cards and 4 store cards that all have zero balances. i would like to close the accounts and operate on a cash basis only. is this a really bad idea? should i just let the accounts close from not using them?
Yes - it will damage your credit & a good credit rating isn't just good for borrowing - some employers now check credit, as do rental agencies.
Just put them in your sock drawer.
Perhaps moderation would work best.
Consider keeping open your two or three oldest cards.
Your store cards are limiting and can all be closed.
If your store cards are your oldest, check your AAofA when choosing what to close.
Congratulations on your decision to only buy what you have cash to pay for. If you choose to make your purchases on your cc's, and PIF immediately, you will have all the advantages of not carrying debt, plus the advantage of keeping your FICO high.
I would recommend that you choose which accounts to close, rather than letting your lenders choose for you.
Good luck!
I have 2 CC accounts that were closed by the CC companies, was laid off and went OTL. I still have balances on them which I pay on time every month. My questions are: Are the on time payments on these closed accounts helping my fico score? Are these closed accounts still counted towards the average age of my accounts. I plan on applying for a mortgage in Sept of 2010 and was wondering what is the bet course of action. Paying on them ( for the sake of having more on time payments on CR) until I apply forthe mortgage, or to have them PIF soon as possible. I need about 40 points added to my mid score, so I really need to know whats the best course of action.... The balances are relatively low, about $450 combined.
Thanks
@bigman023 wrote:I have 2 CC accounts that were closed by the CC companies, was laid off and went OTL. I still have balances on them which I pay on time every month. My questions are: Are the on time payments on these closed accounts helping my fico score? Are these closed accounts still counted towards the average age of my accounts. I plan on applying for a mortgage in Sept of 2010 and was wondering what is the bet course of action. Paying on them ( for the sake of having more on time payments on CR) until I apply forthe mortgage, or to have them PIF soon as possible. I need about 40 points added to my mid score, so I really need to know whats the best course of action.... The balances are relatively low, about $450 combined.
Thanks
Welcome to the forums.
Are these closed accounts still counted towards the average age of my accounts
Yes they will continue for up to 10 years after being closed.
Paying on them ( for the sake of having more on time payments on CR) until I apply forthe mortgage, or to have them PIF soon as possible.
My advice is always to PIF any debt when possible. Don't stay in debt for a few FICO points. Being out of debt should be the #1 priority. IMO.
(myfico)
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802
CC interest free as of 8/09
Time can heal all wounds and a low FICO.
"Hello my name is Sandy and I'm a recovering crediholic".