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re: Better for credit: pay off 2 cards and get rid, or keep with low/no balance?

Posted on 9/24/14 at 5:39 pm to
Posted by Teddy Ruxpin
Member since Oct 2006
39646 posts
Posted on 9/24/14 at 5:39 pm to
quote:

Pay them down to 0, and cancel them altogether?



Nope. Your total available credit and usage thereof is a part of your credit score. Lowering credit, which increases your utilization hurts your score.

quote:

Pay them down to 0, but leave open with no activity?



Nope. They will probably eventually close them. See 1.

quote:

Pay them down to close to 0, and use them throughout the month, but pay off each month?



Bingo. Except, this
quote:

Pay them down to close to 0
sounds like you're overthinking it. Just pay them off, keep the usage low aka balance low around when the statement cuts, pay it off every month in full before bill is due.
This post was edited on 9/24/14 at 5:42 pm
Posted by OceanMan
Member since Mar 2010
20083 posts
Posted on 9/25/14 at 9:53 am to
What he said.
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