Is it better to have unused credit cards? or Cancel them?

ddelo23

I have a few cards that are open that I don't use because the rewards aren't great.  I'm wondering if I should just close them out, or if that will hurt me? 

How many credit cards is "too many" credit cards to have open at one time?  Any financial gurus out there?

StephNJohn2008

Your credit score is largely determined by the ratio of used to available credit, so your better off leaving them open.

cateyes624

Yes leave them open.  Closing them is actually worse.

Liz051405

StephNJohn2008:

Your credit score is largely determined by the ratio of used to available credit, so your better off leaving them open.

From a credit perspective, this is what I've always heard.

From a security stand point, having a lot of open accounts that you never use and therefore never check can be a target for stolen identity. 

So, leave them open but make a point of checking the accounts occasionally. We actually shred the card so they aren't lying around anywhere.

ddelo23

Liz051405:

StephNJohn2008:

Your credit score is largely determined by the ratio of used to available credit, so your better off leaving them open.

From a credit perspective, this is what I've always heard.

From a security stand point, having a lot of open accounts that you never use and therefore never check can be a target for stolen identity. 

So, leave them open but make a point of checking the accounts occasionally. We actually shred the card so they aren't lying around anywhere.

I actually have the cards we don't use in our safe at work here (so that I don't use them!! haha)

hookersbabe

to add to what the others have said, make sure that you aren't being charged an annual fee for these cards...

ddelo23

hookersbabe:

to add to what the others have said, make sure that you aren't being charged an annual fee for these cards...

I'm not - I don't ever apply for cards with fees.  And I really only use my discover, and my 2 disney cards - I alternate depending one what gives me the best rate of return...

Liz051405

ddelo23:

Liz051405:

StephNJohn2008:

Your credit score is largely determined by the ratio of used to available credit, so your better off leaving them open.

From a credit perspective, this is what I've always heard.

From a security stand point, having a lot of open accounts that you never use and therefore never check can be a target for stolen identity. 

So, leave them open but make a point of checking the accounts occasionally. We actually shred the card so they aren't lying around anywhere.

I actually have the cards we don't use in our safe at work here (so that I don't use them!! haha)

Even so, check them often enough. We just discovered a card we don't use has some usage. 

ghl

I'm in the minority on this one. Unless you're specifically applying for something in the immediate future for which your credit score is about to get checked, I would close the accounts and shred the cards. The amount to which it will affect your credit score is not likely to be huge - how well you pay off your bills/existing debt and length of your history is a bigger factor than a little extra available credit. In the long run, I would rather not have the accounts out there hanging open vulnerable to theft or have to constantly be vigilant about checking inactive accounts. If you are about to apply for something else, then wait until after that process is done to close the accounts you don't use.

debfife

ghl:

I'm in the minority on this one. Unless you're specifically applying for something in the immediate future for which your credit score is about to get checked, I would close the accounts and shred the cards. .

I agree. Even though they have 0 balances, they still count as debt (potential debt).  

mommyof4boys

Liz051405:

ddelo23:

Liz051405:

StephNJohn2008:

Your credit score is largely determined by the ratio of used to available credit, so your better off leaving them open.

From a credit perspective, this is what I've always heard.

From a security stand point, having a lot of open accounts that you never use and therefore never check can be a target for stolen identity. 

So, leave them open but make a point of checking the accounts occasionally. We actually shred the card so they aren't lying around anywhere.

I actually have the cards we don't use in our safe at work here (so that I don't use them!! haha)

Even so, check them often enough. We just discovered a card we don't use has some usage. 

THIS! I had tons of store cards from when I was 18-20. I would apply while shopping with my mom to get the savings pass for the day and we'd pay it right off. My mom called me up this summer asking why she had my Sears bill. I haven't used it since I was in my early 20's. Turns out someone stole the info. I'm not sure where they got it since the car has been shredded for about 15 years. I had to file a police report and from there it was resolved. 

kandygrl23

debfife:

ghl:

I'm in the minority on this one. Unless you're specifically applying for something in the immediate future for which your credit score is about to get checked, I would close the accounts and shred the cards. .

I agree. Even though they have 0 balances, they still count as debt (potential debt).  

 

 

penguingrrl

I agree with the line of thought that credit cards with no balance are potential debt and at a certain point begin to hurt your credit score. Also, I've heard it looks bad to have unused cards and that you should have 1-2 cards that you use on a regular basis, at least once a month, and pay off in full and nothing else. I think I've heard too many inactive cards can hurt.