Open CC accounts with no limit, close them?
Date: Sat, 09/02/2006 - 08:12
I also have accounts that have a balance (which is being paid by a credit counseling service) and no limit and are still open. Should I close these too?
Jill
Few reasons why you should close redundant or unused accounts th
Few reasons why you should close redundant or unused accounts that are not necessary.
If you have credit easily available, you will be tempted to purchase things. This may get impulsive and result in serious debt problems.
If someone knows about your open accounts, he/she will try to use it for fraudulent purpose if they are stolen or your cards are lost.
Even if you don't use the cards, there are annual fees to be paid for those accounts.
Multiple open accounts build up various thoughts in the lender's mind when you are looking for mortgage or loans. He will think that you will still use them and build up new levels of debt.
The best thing is to cut the card diagonally and return it to the issuer. Some banks offer renewal cards. Don't take them if you don't plan to use them. Contact the credit card issuers for specifics on account closing requirements. Get a confirmation letter of the closing and finally check in your credit report that it has been reported as "closed at the customer's request."
