I have about $20,000 in credit avalible to me(not all used) as well as my income is about $14,000(without tips) ive listened the great to keeps accounts open though how most credit is great to have compared to income as well as what we owe.
IS IT BETTER TO CLOSE A CREDIT ACCOUNT WHEN ITS PAID OFF?
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yes, wait til u pay it off , then close it
Do not close this account…even when it is paid off. It will reduce your credit rating at closure..
Limit the number of cards you have, thus the amount of avail credit which can also lower the credit rating even if you dont have balances due.
Check with your credit bureau, to be doubly sure.
I would keep at least 3 open accounts 1 being an outomoblile maybe a gas card and a major one open and current. Open, used and paid accounts raises you credit score. More than that with your income shows you have access to way too much.
If you are really mature about your situation, don’t close it. Make sure you don’t over spend or use it for your use. Only have it there for opportunities that are of your best interest.
It is not a good idea to close an account when it is paid off, if you want to help your FICO score. 1. The older the account, the longer your history which boosts your score. 2. Assuming you don’t have a ridiculous amount of credit open, it helps your score to lower the amount of your monthly debt as a % of your total credit available. 3. If you need credit in the future, you will not need to open a new account which will hurt your score.
High credit = lower credit score. Even if not used, lenders and others will note liability of total available credit. The rule of thumb on all credit including home mortgage or rent is less than 50%. Question you have to ask is which credit cards have lowest interest and keep them and close out others. Second strategy, despite low interest rate, keep just one or two at most and at 14k a year, your credit line surpasses those making 50k and over. Remember, credit is nice but it has to be paid back when used. Keep it at 50% or less so you never end up having to fret and go from paycheck to paycheck just to pay on credit. Use ATM check card as well.
Credit reports look at how many accounts you have, your payment record, what your available limit is, and how long you have had the account. If you don’t have other credit accounts it is best to keep the one you have rather than closing it and opening up a new one. If you feel the credit line is too high, call the company to have the credit limit lowered. $20,000 availabe credit could be a problem if your card was lost and got into the wrong hands.
Length of credit history=Good. Debt to credit ratio=Better. Keep the acct open but be responsible.