I have only one credit card, and recently paid off the entire $10,000 balance. My brother, a rabid Dave Ramsey fan, strongly suggested I close this account. I currently have a credit rating of over 800, and I want to keep my score high, in case I need to utilize credit in the future. Thoughts?
I’d close it IF you cant help but rack up a balance again, definitely. The hit in credit score is worth it to remain debt-free IMHO. If you find that you are over-utilizing the card, even if you spend and pay it off, but don’t have any savings, I’d get rid of it.
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I have to agree with what @kellyfromkeene said. A credit score is only a number that is mostly useful to help you get more debt ironically. Your credit score is high enough that it probably wouldn’t get hit too much if you closed it.
If you are saving and investing and not putting a balance on the card, and you just like to keep a high credit score, than keeping it open might be fine.
I guess in that case it would come down to personal preference.
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Honestly, I would keep it open and charge, say, $300 every so often. Once a year, maybe. Take two or three months to pay it off. It establishes the fact that you can responsibly handle debt. If you ever plan on applying for credit - renting a new house, utilities, car loan or mortgage, etch - you will have shown that you are responsible.
Moore Income posted:
I have to agree with what @kellyfromkeene said. A credit score is only a number that is mostly useful to help you get more debt ironically. Your credit score is high enough that it probably wouldn’t get hit too much if you closed it.
If you are saving and investing and not putting a balance on the card, and you just like to keep a high credit score, than keeping it open might be fine.
I guess in that case it would come down to personal preference.
I agree with both paying it off and keeping it. The problem is without any payments the credit score will drop due to lack of history. If you keep it then discipline is the operative word. Without debt is the best option provided you do not need to buy something on credit ie. home mortgage. etc.
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PNWDebtbomber posted:
I have only one credit card, and recently paid off the entire $10,000 balance. My brother, a rabid Dave Ramsey fan, strongly suggested I close this account. I currently have a credit rating of over 800, and I want to keep my score high, in case I need to utilize credit in the future. Thoughts?
Keep the card and use it for small charges and pay it off within the billing period.
@roy I agree completely.
