When should you close credit accounts?

Answer 1

Credit Cards and Your Credit Scoretrust me when i say, don't close your credit card accounts as soon as you pay them in full. definitely cut the cards in half and store in a safe place. do not contact the creditor to inform them that you are paying the account in full and closing it. by closing your accounts soon after paying them off, you end up "decreasing" your credit score with the three main Credit Bureaus (Equifax, TransUnion, Experian). i know this all too well because i just had this happen to me. in my opinion, it's not fair, but it's the way it is. i was informed by my local Credit Bureau (for future reference) not to cancel/close credit card accounts when I've paid them in full and no longer want to use them. i was told to let the accounts remain active/open until the credit card company contacts me to cancel them due to non-usage (this can occur within one or more years from the date of your final payment). by doing this, your credit scores will not be affected and that's a good thing to have happen these days.