Credit Card question

**DixieJ** · 07-08-2008, 04:15 PM

I pulled my free credit report and notice that I had 5 accounts that showed up that have been paid off for some time. They were still showing as open accounts, I had actually forgotten all about having these since they've been paid off for a while. Should I close these accounts since I don't ever plan on using them again, or will that hurt my credit score. I was just thinking that I may have too many open accounts even though these have a 0 balance.

**Greebo** · 07-08-2008, 04:17 PM

It will probably hurt your credit score, but leaving them open leaves you open to the risk of discovery by the criminal element.

If you have no plans to use them again, then I'd close them.

Besides... you don't actually need a great credit score. You could just live debt free instead.

**vigilant20** · 07-08-2008, 04:29 PM

It will hurt your credit score. Part of the calculation includes the amount of credit you have available to you.

**Wendy99** · 07-08-2008, 04:33 PM

Personally I would close them .. if you don't need or use them get rid of them.

**itsahumanzoo** · 07-08-2008, 04:39 PM

It does hurt your score (A tiny bit) to close them, but I agree with greebo. It also leaves you open to theft, and that is a much much worse situation than any.

**PrairieRose** · 07-08-2008, 07:23 PM

If and when you decide to close them ask the agent to make note in the credit file that the account was 'closed at customer's request'. I hear that is supposed to have less of an impact on your credit score. And, just for what it's worth.....I wouldn't worry too much about the credit score thing....

.

**Palooka** · 07-09-2008, 02:10 AM

If you do decide to close them, make sure they mail you a letter stating. Yes it will hurt your credit score. Sometimes too much open credit can hurt your score. You could just decide to close a couple.

Someday you may need to finance a house of even a car. That is your credit rating to a very low intrest. It's your history you may need. Never know what may come up in life...

I still believe that fico is everything. Most people do not have the money to pay cash for a house. 'Owning' a house is not really considered a 'debt.' But having nothing to show for would suck if you payed your creditors and had no cash...

**Greebo** · 07-09-2008, 06:28 AM

Originally Posted by Palooka

I still believe that fico is everything. Most people do not have the money to pay cash for a house. 'Owning' a house is not really considered a 'debt.' But having nothing to show for would suck if you payed your creditors and had no cash...

You don't need to finance a car - if you can't pay cash for a new one, you buy a beater and you learn something about car maintenance.

People without the money to at least put 20% down on a home can't afford the home. The belief otherwise that has been a major contributor in the current mortgage meltdown and foreclosure spike.

Fail to pay the mortgage one month, and then tell the bank's collectors it's not really a "debt". You'll be in for a rude awakening. Gotta tell you though - that one made me laugh out loud.

If you have no debt and no cash, you still have the things you paid for, which means you don't have "nothing to show". If you have things, and you have debt, your net worth is a whole lot harder to calculate, and its amazing how easy it is for your net worth to fall below 0 in that case. A few years back, I was making just under six figures. I had the house, a nice car, all the toys I wanted, a heloc, 2 personal loans, 3 credit cards, the car loan and the mortgage, and I had a net worth of $-60,000. Today it's in the positive, but mainly because of the real estate bubble pushing the value of my house up. I haven't looked in a while - for all I know, I may be back in the red again right now.

You think no cash and no debt is nothing to show? No - having everything you own able to be taken away cause you don't actually OWN it is having nothing to show. A net worth of <$0 is a cold slap in the face.

I'll tell you something else - if I hadn't been such an idiot about debt in the past, I'd have a net worth of several hundred thousand today, and not a paper net worth based on a volatile house value. I've pissed away EASILY at least $200,000 in interest payments in the last decade, believing the same myths you still spout.

The truth is, you either live on less than you make, or you don't. If you do, you can prosper. If you don't, you won't. You can only fake it for so long. The house on sand will collapse sooner or later, and debt is definitely shifting sand, not fit for building upon.

**Michelle** · 07-09-2008, 06:56 AM

Originally Posted by PrairieRose

If and when you decide to close them ask the agent to make note in the credit file that the account was 'closed at customer's request'. I hear that is supposed to have less of an impact on your credit score. And, just for what it's worth.....I wouldn't worry too much about the credit score thing....

.

:agree:

I closed one a few months ago and asked them to note that I requested that it be closed. I also made sure that they sent a letter stating that for my files.

**DixieJ** · 07-09-2008, 03:20 PM

Originally Posted by PrairieRose

If and when you decide to close them ask the agent to make note in the credit file that the account was 'closed at customer's request'. I hear that is supposed to have less of an impact on your credit score. And, just for what it's worth.....I wouldn't worry too much about the credit score thing....

.

This is what I've decided to do. You all are right, I probably don't need to worry about credit scores. Don't plan on financing anything else once I get everything paid off. Don't plan on buying another home..The only way we'd move is if we sold the one we are in and paid cash for another.

**Palooka** · 07-09-2008, 10:12 PM

Greebo- You took my post way out of context. I was just saying that you need some kind of credit score/FICO to get a loan on a house.(or a car and I understand what you are saying about the car thing) I never said anything about what % to put down on or what else you went on about or if people could afford it. I don't see anything wrong with having a mortgage. It's an investment and you can sell it and the equity always goes up.

Most people don't have the cash to buy a house with. That is why you need a good FICO score to buy one. It is your history that the creditors go by. If your score is low they may not give you a house.

Too many years of listening to Suzie Orman.

ETA-yes I know this has nothing to do with the OP. Just saying....

**Greebo** · 07-10-2008, 06:23 AM

No, Palooka, I did not take your post "out of context". I just trimmed down your quote so it was clear who I was responding to without repeating the entire thing, and then I responded to what you said, line by line, in total context.

No, you didn't talk about % down - you said "Most people do not have the money to pay cash for a house.", which pertains to affordability, so I talked about affordability.

You tried to say that owning a house wasn't a "debt" - no, owning a house isn't a debt, having a mortgage is, and if you have a house that's worth less than the mortgage is called being under water for a reason - it means you're DROWNING IN DEBT. There is no point in owning a house you can't pay for.

You talked about "having nothing to show" - I talked about what "nothing to show" really meant. Net worth.

You talked about NEEDING a FICO score. That's a complete MYTH. You do not NEED a FICO score to buy a house - you NEED a bank that will do full underwriting, not just a "Oh what number does he/she have" comparison.

I'll tell you what was out of context though...I don't watch Suze Orman. I've even posted that while I think she has a good message, she drives me nuts with her manner of presentation.

So how about instead of getting personal (again) - telling me I did something I didn't (go out of context) - and accusing me of being an Orman fanatic - why don't you address the CONTEXT of my response and tell me where what I'm saying is mistaken.

**Palooka** · 07-10-2008, 10:43 AM

I'll tell you what was out of context though...I don't watch Suze Orman. I've even posted that while I think she has a good message, she drives me nuts with her manner of presentation.

So how about instead of getting personal (again) - telling me I did something I didn't (go out of context) - and accusing me of being an Orman fanatic - why don't you address the CONTEXT of my response and tell me where what I'm saying is mistaken.

Good lordy. I was saying I was the one that has watched Suzie Orman for years, not you! lol That is where I get my info about the FICO score. GEEZ! It wasn't personal.

**Greebo** · 07-10-2008, 10:47 AM

Originally Posted by Palooka

Good lordy. I was saying I was the one that has watched Suzie Orman for years, not you! lol That is where I get my info about the FICO score. GEEZ! It wasn't personal.

Ah, in that case, I apologize - I misunderstood that statement.