+10 votes
by (260 points)
So I see some people say that they will pay off their credit card and then close them. Doesn’t that as well hurt your credit score? Would it not be better to pay off the balance and then shred the card and not use it again. I am new at this and would like to understand that better. Thanks
So I see some people say that they will pay off their credit card and then close them.

9 Answers

+4 votes
by (320 points)
Yes it will lower your score. Some people do not want a score (look into Dave Ramsey) others want a high score. Depends on what your personal preferences are.  
+5 votes
by (3.1k points)
It depends on factors how long and how much it affects it. My credit score shot back up very quickly but closing them and having a little lower score maybe for a couple months was worth it to me.  
0 votes
by (23.6k points)
Yes, but if there's an annual fee, for example, keeping it open wouldn't be very helpful. Your credit balances out eventually.  
by (260 points)
Completely agree. I did not have a annual fee on my cards and I was wondering if I should keep them still open or close them they are all at zero balance.  
+1 vote
by (16k points)
Instead of closing your cards, try putting a small, recurring bill on it each month, like Netflix or only use it for gas. And pay it in full each month.  
+10 votes
by (2.4k points)
We closed ours the minute they were paid in full because we never wanted to deal with credit cards again. That was in 2014. Aside from having a mortgage, we have no debt, and our scores are above 800 but that's only because we make our mortgage payments on time. And, if it weren't for a recent refinance when rates went super low, I couldn't have told you what our score was because it isn't something I track. In fact, we keep our credit frozen to help decrease the chance of identity theft. As others have mentioned, it's a personal preference and should be in line with your end goal (i. e., we never wanted to borrow money again so closing all credit lines was in line with our overall goals).  
by (260 points)
Thanks so much.  
+7 votes
by (5.2k points)
I think I am going to close mine because I am afraid that there will be hidden fees or that the card could get hacked. does anyone else worry about that?  
by (8.4k points)
@septempartite credit cards have to be transparent with fees so that's not a worry to me. Also credit cards have more protection then debit cards if you were to be hacked. Not saying they cant have something happen. But it's a hell of a lot easier to get a CC company to remove fraudulent charges then it is on a reg debit card.  
by (5.2k points)
Amy, thanks! That does make me feel better! I over worry. Lol
by (8.4k points)
@septempartite I'm an over worrier to. But in reality shit can happen, it's just about making sure our butts are covered when it does.  
by (2.1k points)
Check the interest rates on the cards. I closed all my department store cc. Thankspically have some of the highest interest rates. Then ask yourself if you are disciplined enough to manage a cc from a credit union or bank with low interest. Be honest. My husband will save for a purchase put it on his card because of the rewards then pays it off. He is not an impulse shopper.  
+5 votes
by (8.4k points)
Its personal. You need to have it work for you. So if your closing, you need to make sure that's not going to affect your goals. If you keep them open, you need to make sure they are working for your goals.  
+10 votes
by (1.8k points)
It may hurt credit score, however if a person knows themself well enough to know that they can't be trusted with credit cards - then that hit to the credit score still has them in a better position than if they were to run up the balance again. The cards I intend to close when they are paid off charge an annual fee (even if the cards are not being used) so I'm not willing to leave them open just to pay fees.  
+5 votes
by (1.8k points)
I've also heard of some credit cards being closed by the lender for non-use.  
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