Which CCs to keep?

[mactastic]

Hi all! DH and I just recently paid off the last of our substantial credit card debt (YAY!) I am now wondering which (if any) of the cards we should be closing. We're probably 5 years away from even considering buying a house (DH has 2 years left in school - we hope to start saving aggressively after he graduates) and want to work on building DH's credit score before then (it's in the 670-680 range. Mine is 790.)

How much of a hit does a credit score take when you close a card? How long does that impact the score?

We each have 3 cards, two of which we opened to take advantage of their 0% promotional rate to help us pay down the balances quicker. All cards have zero balance, and we plan to keep it that way (though we do plan on using one for our gas each month, as it gives us 5% back on gas, and paying off the balance at the end of each month.)

What say you?

My cards:
Card 1: $0 bal, limit of $8,600. My longest existing card.
Card 2: $0 bal, limit of $6,000. Got this for the 0% rate, which expires in December.
Card 3: $0 bal, limit of $4,000. Offers 5% back on gas.

His cards:
Card 1: $0 bal, limit of $3,200. Got this for the 0% rate.
Card 2: $0 bal, limit of $4,500. His longest existing card.
Card 3: $0 bal, limit of $2,200. We opened this card when we registered for wedding gifts, just to get the bonuses. It has an appalling interest rate (like, 23%,) and we never really shop at this store.

Thanks in advance!

[catbus]

I wouldn't close any, unless there are fees associated with leaving the accounts open. Why do you want to close them at all?

[genet313]

Congrats on paying off debt!

I've generally heard that you should keep longstanding credit cards, particularly bank cards like Visa/Mastercard/AmEx as that positively affects your credit score. And to close specific store cards.

I would be curious to know if others have also heard this.

[mactastic]

Jan 9, 2013 15:45:34 GMT -5 catbus said:

I wouldn't close any, unless there are fees associated with leaving the accounts open. Why do you want to close them at all?

Part of it is just because it seems like 6 cards is a lot. Also to lessen the temptaion to use them again? (Not me so much as DH.) I dunno, I guess I just assumed that we should! (And we all know what happens when you assume...)

[biomaj5]

I'm in the same situation and have wondered the same thing! Thanks for posting this! I have 7 cards, and I'd like to get rid of the Zales card (oh how I hate them) and the best buy card (they never sent me a new card, the one I have is expired, and we don't use it anyway).

[Deleted]

I closed storecards after I got rid of my cc debt. Other wise I would keep them open.

Also- I never pay attention to the interest rates on cards because we pay them off every month.

[stumpy]

I pay the balance every month and have closed several store cards and "regular" cards without a hit at all. I have also used cards for the 0% balance and closed them without problems.

That being said, the majority of my cards (old and new) all had higher limits.
Three cards each is nothing. When you have fifteen to twenty then that is something. Most people have three to five and don't consider that a lot.

I honestly wouldn't worry about it.

[mactastic]

Jan 9, 2013 16:55:23 GMT -5 @vicmo said:

Do any of the cards have an annual fee?

Nope!

[goaskalice]

If you're not planning on racking up debt keep them open, except maybe the store card. Unless you feel like it's too tempting, I don't see anything wrong with having healthy available balances on credit cards.

[AAM2012]

Jan 9, 2013 15:51:55 GMT -5 mactastic said:

Jan 9, 2013 15:45:34 GMT -5 catbus said:

I wouldn't close any, unless there are fees associated with leaving the accounts open. Why do you want to close them at all?

Part of it is just because it seems like 6 cards is a lot. Also to lessen the temptaion to use them again? (Not me so much as DH.) I dunno, I guess I just assumed that we should! (And we all know what happens when you assume...)

I wouldn't close them, but would just put them in a safe place (locked safe) so I am not tempted to use them unless in an emergency.

[awick14]

Jan 9, 2013 16:02:40 GMT -5 @charky said:

I can't imagine impact on credit for closing 1 or 2 cards would be severe, but just for simplicity's sake, I'd probably close at least his Card 3 (store card).

If your finances are joint, what about making some of those into joint cards?

Also, I'd see about upping the credit limit on some if you're really serious about not maintaining a balance. Higher credit limits can help your credit score.

Upping the limit will help gain credit now, but it can go against you when you want to buy a house. (Depends how excessive the amounts are)

When we bought our place they looked at our combined credit (not used) which was about $15K and said that if it was any higher we might have not qualified for the amount we got. Basically he said if you have we're to rack up all $15k available you couldn't afford the minimums and your mortgage.

[Deleted]

Assuming no annual fees and similar interest rates, I'd say you each keep the longest standing card out/in your wallets, and do the freezer system for the other four (put them in a baggie, then in another baggie, fill the second one with water and freeze it in your freezer so you're not tempted to use it). And pay the charges off in full each month.

At least, if I knew I'd be tempted to spend, that's what I'd do.