Credit Cards......?

Credit Cards......?
Will closing out my credit cards (after I have paid them off) hurt my credit? I have (in order I recieved them) Capitol One, Chase, Providian, Applied Card Bank, Aspire Card Bank, Orchard Bank, and Wal-Mart. I am closing out Applied, Aspire, and Orchard.

I am keeping Capitol One and Chase because they are my longest (I heard you need to keep your oldest) and I am keeping Providian because it has my highest credit limit (I was told you need at least ONE card with a good credit limit) and I am keeping the Wal-Mart card just because.

I haven't used any of them in over three months and I have been working on paying them off (I am down to half the balance on all of them). I want to close out those three once I've paid them off but I am curious on if it will hurt my credit to have them closed?

If it does hurt my credit, will having the others (on zero balance or paid off every month) help it more then closing will hurt it?

Thanks!!!!
Capitol One was my first credit card and I have NEVER had problem with them! They are my favorite!


Answers:

daniel a:  no, it won't hurt, and it sounds like you have a good rating, because you sound responsable
2006-05-12 22:26:23
Rosa41042:  Hi, credit cards are revolving credit and show your maximum credit limit even when they are closed. Credit scores are between 200 and 900 you want to be around 700. 3 credit cards are a good amount to have, more than 3 could lower your credit score even if no balance because you have open lines of credit. Call the other credit card companies and close out the cards you don't need especially the ones with high interest rates. You really shouldn't have any cards with rates higher than 0%, 2.9%, or 4.9%. Anything higher with balances should be paid off as soon as possible. Or transfer the balance to a card with an introductory rate of 0% or below 5% for 5-12 months, where you are mostly paying the debt and not the interest. But keep an eye on the expiration date of introduction rates as they will jump up when their intro time is over. When balances are paid off those accounts show paid but still are part of your credit report. To have an account taken off your report when paid in full or closed can take at least 3 months. Pay loans on time and keep the number of credit cards to a minimum and that will help you maintain a good credit score. Good luck. -R
2006-05-12 22:36:10
jasondharrison:  It won't hurt your score or help it.
Keep the cards open but don't use them.


A company like Chase is great for your credit score, Providian is also wonderful, these are company's that won't really charge you a lot of monthly finance charges(if any).
BE very very careful of CAPITAL One I would not recommend them even to my worst enemy.

This is a card that maybe closing, and defiantly not using once the debt is down is a good idea. Capital ONE has a funny way of reporting you as over your credit limit when you're under it. (really big on charges also)
2006-05-12 22:37:03
Chosen Answer
Joe:  Closing accounts can sometimes hurt your rating. See the first link below. You are right in keeping your oldest accounts open, as your credit score is partially based on how long you have had credit.

The second link is Yahoo's information on improving your credit rating. The third link is Motley Fool's information on improving your credit rating. Good luck!
2006-05-13 06:03:58