Credit question

[Holly_Hobby]

I need some advice regarding credit cards.

If I pay off a credit card and no longer need it, should I close the account or leave open at a zero balance? In other words, will closing the account erase the history of the credit card on my credit report? Thanks so much!

[wakemeupwhenitsover]

1. closing an account can effect your credit score depending

on some factors. like, how long have you had the card? if it's a really old card then i wouldn't close it. if it's relatively recent there should be no problem. also, how much did you rack up on it? if you never went above 30% of the credit limit and made your payments on time it would more than likely have given you bonus points on your score so it's best to keep it open. doesn't hurt anything to have an open card that you don't use.

[Holly_Hobby]

2. Thank you

I've had the card 4 years and have about $900 on it. The credit limit is $5,000. I should probably just leave it open.

[wakemeupwhenitsover]

3. definitely.

[A HERETIC I AM]

4. Advice from Bankrate.com on the best procedure...

There's always a right way and a wrong way to do things, and that goes for canceling a credit card.

Whatever your reason for getting rid of a credit card you'll want to make sure you do it thoroughly and that no harm is done to your credit report..

First, don't try to cancel a card while you're paying the balance. Cancel the card only after you have paid off the balance in full.

"There isn't a need to cancel that account until you're through with it," says Jean Brannan, community outreach coordinator for Consumer Credit Counseling Service in West Palm Beach, Fla. She adds that you have to employ self-discipline and stop using a card while you're paying off the balance.

OK, let's say you have paid off a card's balance and you want to cancel the account. Brannan suggests that you do the following, in order:

Notify the card issuer by phone.
Follow up by notifying the card issuer in writing.
Get a copy of your credit report and make sure it's accurate.
Repeat, if necessary. (snip)

Check your credit report
You don't want your report to say the account was 'closed by creditor,' because that reflects negatively on you.

If the card issuer mistakenly reported that the issuer, not you, closed the account, you'll have to return to the beginning. Call the customer-service department to report the mistake, follow up with a letter sent by certified mail (include a copy of the letter you wrote requesting that the account be closed), and check your credit report again.

"Remember that a credit report is your credit history," Brannan says. "The information is submitted by lenders, but it's your individual responsibility to make sure it's correct."

The rest at;
http://www.bankrate.com/brm/news/cc/20010110a.asp

And this from About.com;

http://credit.about.com/od/toughcreditissues/a/closecards.htm

Google results from the query "Close a credit card?"
http://www.google.com/search?hl=en&q=close+a+credit+card%3F

[davidwparker]

5. No, closing your account won't erase your credit history. But, what you

should do is close the account. Now that you're not paying interest, you should be using that money to save for a rainy day.

CLOSE YOUR ACCOUNT.