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closing credit cards

New Member

closing credit cards

I am in the process of buying a home.  All my credit cards are paid off and I would like to close all but one.  then I would like to open one with rewards for travelling.  Is this a smart move since I have not closed on my home?  My credit score is 777.

7 REPLIES
Moderator Emeritus

Re: closing credit cards

 


gloria5 wrote:

I am in the process of buying a home.  All my credit cards are paid off and I would like to close all but one.  then I would like to open one with rewards for travelling.  Is this a smart move since I have not closed on my home?  My credit score is 777.


 

Hello and welcome.

 

Since the cards are all paid off just closing them won't hurt your score but unless they have a high annual fee and/or monthly charges why would you want to close them? Here is a great thread talking about Closing Credit Cards that can explain in more detail.

 

 

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Valued Contributor

Re: closing credit cards

There is an entire page on credit card closing. Has some good information in it.

 

Look at it here:   http://ficoforums.myfico.com/t5/Credit-Cards/Closing-Credit-Cards/m-p/347190#U347190

 

EDITED: I was run over by MVV...

Good Luck
May all your dreams and wishes become a reality!
Senior Contributor

Re: closing credit cards

I would not do anything until you have closed.   

 

Generall a minimum of 3 CC is needed to maximize your FICO score.    Also,  having only 1 card can be risky, a card can be stolen or cancelled without warning and you may find yourself in a bad situaltion because of it. 

New Member

Re: closing credit cards

Thanks for your help.  Advice taken.

Established Contributor

Re: closing credit cards


Wolf3 wrote:

I would not do anything until you have closed.   

 

Generall a minimum of 3 CC is needed to maximize your FICO score.    Also,  having only 1 card can be risky, a card can be stolen or cancelled without warning and you may find yourself in a bad situaltion because of it. 


Agree.................I wouldn't close any of those cards until after settlement.  You don't want any FICO fluctuations in your scores that may affect your loan closing.  Maybe after closing, if those cards have AF's or other charges attached to them, you could apply for a better travel card, and perhaps close then.  Just remember, your AAoA will also lessen with new accounts placed along with the mortgage loan on the credit report.

 

Congrats on your home purchase, its a great feeling!!

Current Score: EQ: 828, EX: 833, TU: 820 Citi TY Premier WEMC 46.5, (Since 1983)Discover 15.6k|BOA WMC 30.5k|Barclays Juniper Rewards 15k|Barclays Amex 20k| Cap One QS WMC 15K|Chase Freedom VS 19.3k|Citi Dividend WEMC 25k|FNBO 15.5k|CSP 22.1K|Chase Marriott 31.3k|Citi TYP 20K|Citi DP 16.5k|Macys 5k|Sams MasterCard 15k|Barclay Arrival Plus WEMC 18.7k|Chase IHG WMC 26k|Citi Double Cash 10k|Chase MileagePlus Explorer 14k|Amex Everyday 16.2|BBVA Amex 22.5k|Total Rewards VS 12.5k|SGV 10K|Venture 12k|BOA Virgin Atlantic WEMC 11.2K|MB Amex 9.5k
Established Member

Re: closing credit cards

Do NOT close the cards until AFTER you close...I closed on my house in June of 2010...my broker told me to not do anything...not to charge anything...so closing would probably not be a good idea either...just my 2 cents...

Highlighted
Moderator Emeritus

Re: closing credit cards

I agree - don't close or open any new accounts until the home deal is done.  They may pull your CR once again for closing (they did for us), and you want your ducks to be in the same row they were in when you were approved.  Keeps things nice and simple.

 

What is your anticipated closing date?

 

And, I'm curious, why do you want to close all your cards but one?

 

Do they have AF's?  Do you prefer to not worry about managing too many cards?  And, are they bank cards or store cards?

See how it is with me - you ask one question and I come back with three. Or four.  Maybe more.....

 

But it's helpful, if you're willing to share this info.

 

Congrats, btw, on that new home!  Will you be in on time for the holidays?  Or will it be part of celebrating a new year?

Smiley Surprised  I can't believe I'm still asking questions........

Just puttin' syrup on something, don't make it pancakes.