Whose theory about credit card debt is correct?

I had about 8-9 credit cards (Visa/MC AND store cards), and have been paying them down. I have managed to pay off 3 of them. I have opened two new accounts and made balance transfers to clear out the store credit cards. That will leave me with 3 Visas and 1 Mastercard, which I find more manageable and easier to make larger payments on, thus making a bigger dent in my debt.

I think that when I pay off a card I should close the account, as leaving a $0 balance will still show on my credit report and lower my credit score because it will still seem risky since it%26#039;s something I can still use and run up again.

My fiance thinks I should leave all the cards open after I pay them off or else that%26#039;s what will lower my credit score.

What%26#039;s actually right?????

Whose theory about credit card debt is correct?

Rip up the cards but keep the account open.

Whose theory about credit card debt is correct?

Get rid of the cards.having nine cards is not good ..........

Whose theory about credit card debt is correct?

I think it%26#039;s more important to show that you have managed your credit over a greater period of time than to not show that you have too much available credit. So don%26#039;t close the Visa or Mastercard that you have had the longest. I don%26#039;t think you have to leave all the cards open - just the ones with the longest history.

Whose theory about credit card debt is correct?

You definitely shouldn%26#039;t close the accounts. You should keep a small balance on the cards, but no more than 30% of the credit limit. Transferring the balances was a good idea, but credit experts say not to close the accounts.

Whose theory about credit card debt is correct?

pay off ALL credit cards cut them up and never ever use credit cards again. when u get debt free your score goes up cash is King debt is dum!!!!

Whose theory about credit card debt is correct?

Congratulations and kudos to you for being proactive in paying off the debt!

I would not have opened the two new accounts, but they are open and it%26#039;s done. So, LEAVE THEM OPEN. I know that a $0 balance on an open account may seem risky on a credit report, but quite the contrary. If you show that you HAVE the available credit, but are not ABUSING (or even USING) it, your score will increase. Better yet, charge up a balance once a month (a managable one) and pay it off in full every month. But, never have more than 30% of your available balance tied up. Example: Your available credit is $30,000. Never charge more than $10,000 on that account (one third, or 30%).This is most certainly the quickest way (using credit cards) to increase your FICO score.

Leave those accounts open for at least 3 years, and when you decide close them down, don%26#039;t do it all at once, stagger them :)

Whose theory about credit card debt is correct?

Many experts will tell you to close the newest account and keep the oldest accounts. Part of your credit score is based on how old are your accounts. Older accounts show stabiltiy. You do not need to close all your accounts but having excessive credit may also be a problem. Keep the ones with the highest credit limit and get rid of the rest as long as you still keep the oldest ones as well.

Hope this helps

Whose theory about credit card debt is correct?

It looks better on your credit to have a credit card sitting there with no balance and no activity then it does to not have the card on there. Your score will lower when you close the accounts. However, having 9 credit cards is a far greater risk then out weighed by the long term accounts. You will likely be denied credit or have your score lowered due to having %26quot;too many revolving accounts%26quot;. My advice - get rid of a couple of the cards, your score may drop slightly for a couple months but will pick right back up and will seem like must less risky to lenders. Only close a couple of accounts!

Whose theory about credit card debt is correct?

Your fiance is right