Internet's first get-out-of-debt community - 116,000 members

Ima Guest · Posted: Sun Apr 27, 2008 8:48 am

I have a question about the effect of canceling paid-off credit cards. I have 3 (and only these 3) credit cards - Citibank, Capital One, and GM Card. They are all paid off - yea! So now I have zero credit card debt. I have considered canceling the Capital One and the GM Card and keeping just the Citibank CC (I like how Citibank enables one to create 'virtual account numbers' for web purchases). However, I have heard that canceling credit cards has a negative effect on the credit score, because it lowers your total credit ceiling. Is this true? Please advise! Thx!

BTW why isn't there a special forum for credit card questions??? My I suggest making one???

Posted: Sun Apr 27, 2008 10:51 am

If the cards in question are paid in full, and not costing you anything [like annual fees, etc], then leave them open. No sense removing tradelines that are reporting positively on your report.

Posted: Sat May 03, 2008 11:25 am

closing the accounts would lower your overall utilization limit and could damage credit depending on what percent you are utilized. I agree with above advice.If it is costing you nothing keep the accounts and rotate out about twice a year to keep cards active.

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