Best Time

[Anonymous]

When is the best time to close a credit card account? I don't want to hurt my credit scores by closing the account (it's a $500 limit). But my credit card that I use most often and have had the longest has a limit of $1200. So would closing this other card hurt me much?

Thanks for the help.

[cadavis0609]

is it one of only 2 cards that you have? if so, and you close this account, you decrease your available credit by almost 30%. If you have a 200 dollar balance on your 1200 card, you are using 16% of your overall available credit. Not bad but, if you have a 200 balance with 1700 in available credit, you are using 11% of your available credit which is viewed more favorably by the FICO Gods. Between 1-9%. If you really must close it, you are doing right by closing the newest one, but I personally would sock drawer it unless there is an annual fee.

[Anonymous]

OK ... I think that's what I'll continue doing then. I've had it stashed away, because I really have no desire to use it (the APR is ridiculous). The company refuses to lower the rate, so I was thinking about closing it. But I guess the best idea is to hold on to it for now.