cancel
Showing results for 
Search instead for 
Did you mean: 

proliferation of open credit cards....what to do?

tag
Anonymous
Not applicable

proliferation of open credit cards....what to do?

Interesting credit score question...

 

I realized recently that  number of open credit cards has risen thanks to 0% financing deals, etc over time.  I now have two major cards (Discover, MC) and about 4 store cards (one is a MC).  I am only carrying a (very low) balance on 1 card (0% financing).

 

I intend to do some renovations soon, and was originally thinking about opening a Home Depot card to nab the 10% (or whatever it is) discount, but I am concerned about all these cards.

 

Should I close the store cards?  I know the answer is probably "it depends", but I would like to hear the arguments... My main cards have probably the longest histories...

 

thanks for any and all help!

Kris

Message 1 of 3
2 REPLIES 2
haulingthescoreup
Moderator Emerita

Re: proliferation of open credit cards....what to do?

There is no real reason to ever close a card, unless it has fees. Two bank cards and four store cards aren't excessive at all. (Obviously you don't have problems controlling your charging behavior, or with your ability to repay, etc.) But if the presence of the store cards just bugs you to death, you can close them.

Be aware of possible effects on your revolving util. They will continue to support your average age of accounts as long as they remain on your reports. This should be 10 years, although with Equifax, ya just never know these days.

In your position, I would definitely keep the cards. You're probably OK with using a store card once every six months or so, although once every four months is safer. Use each bank card at least once a month (a tank of gas and so forth), because bank cards get closed by the lender for disuse much more quickly than do store cards.

Read fused's "Closing Credit Cards" in my siggy below. His post is great for helping you think through something that is pretty counter-intuitive.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 2 of 3
Anonymous
Not applicable

Re: proliferation of open credit cards....what to do?

thanks for the info!

 

Some of the cards I havent used in a year or two (how many mattresses or Panasonic products does one need?), but I do try to use the main ones occassionally...

 

Reading the article now...

 

Thanks again!

Message 3 of 3
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.