pay off credit card-will it affect my credit score?

**glamourpuss** · 05-21-2010, 04:03 PM

Hi Everyone,
Just curious, I have a credit card that has gone from $1900 to $800.
I've mainly paid it off by selling stuff around the house and selling stuff on ebay.
My question is although the bank (wells fargo) is surely going to try to talk me out of it I want to close out my credit card. I really can't be trusted with it and I want to just have a debit card. No cash no spending.
Will it affect my credit score if I close out that card? Should I care?

Thanks,
Sue

**krbshappy71** · 05-21-2010, 04:16 PM

Are you on a financial plan? As in, following some guidelines from Dave Ramsey or similar person? It helps to have your plan laid out as it will then answer your questions.

Where do you want to go with this? Credit card free entirely? If so, and you have a plan, then ask yourself why you care about your credit score. Do you have an emergency fund built up? You will want that built up before you pay off the credit card or you wont have anything to fall back on and may reach for credit again.

If you aren't quite ready to give them up, then yes you need to know it will affect your credit score. If you are planning on buying a house soon (I believe its within 5 years is the time-frame Dave Ramsey speaks of) then it could have a negative effect.

Me, I'm done. I am so done with credit cards. At least that's what I tell myself every day that I'm craving that Starbucks. I have closed my accounts as I've paid them off.

Great job paying down debt!

**mombottoo** · 05-21-2010, 04:52 PM

It does affect your credit score whether it matters or not depends on if you are going to need your credit score in the near future.

**frugalwarrior2** · 05-21-2010, 05:08 PM

yes it will negetively affect your credit score. Can't you keep them w/o spending for awhile. As long as they're not charging you fees? What if you cut in 1/2 and stored the 2 halves seperate places.?

**suzysparkles** · 05-21-2010, 09:56 PM

Hi Everybody,
Yes financial freedome from credit cards is my goal.
Actually my credit score really isn't that important. We own our house and have no plans to move and no other loans in our future. (hopefully)
I really think closing it's the best answer.

Thanks,
Sue

**frugalfranny** · 05-21-2010, 11:05 PM

If you really feel that you can't be trusted with it..........then I would close it out and not worry.

It won't hurt it 'for that long'..........and unless you will need banking/loan/house in the next year I wouldn't be concerned.

**Thevail** · 05-22-2010, 12:38 AM

It will hurt your credit score.. but so what? If you're not applying for more credit it's pretty irrelevant.

The bottom line (with a big black line under it) is that if you even think you can't trust yourself.. close it down. You never want to be in the position of the alcoholic when someone left just one beer lying around.

DH and I have a credit card allergy, and can't deal with them. On the other hand, we do recognize that sometimes life gets wierd.

So we opened a $2000 line of credit at our credit union. it's a fixed 12% (which seems crazy high, but beats the best rate we could get on a credit card.)
And we don't get charged anything unless we use some of that money and then don't make the payment to replace it within 15 days.

We want to raise our credit scores, which are only middling (even though our credit record is so clean you could eat organic produce off of it!)

It's not as high as it could be because we have NO credit. Now we do, and we can just use it for the grocery shopping and put the money back the next day.

Hopefully, this will raise our credit scores. The eventual goal of all of this is to be able to get the best, most awesomest re-finance ever.. using our new credit score of 849.. Bwahahha!