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When you're done paying a credit card bill, do you call to cancel the card, or do you destroy the card?

Answers:1   |   LastAnswerAt:2009.12  

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visitor
claria 
Asked at 2009.12.18 19:50:12
i hear that if you call to cancel the card, its bad for your credit history...is that true?
answer ro  Answered at 2009.12.18 19:50:12
If you destroy the card and close the account the credit history goes with it. Two things affect your score by doing it. It reduces your overall credit availability and it reduces the amount of months you have had credit. By closing it you lose both factors which affect your score. You can leave the account open and don't use the card or use it once or twice to keep from having the bank closing it. People that keep switching credit cards because of lower interest find that their scores are lower than a similar person who has maintained one or two accounts. An account that has been open for two years is better than having opened and closed three accounts in that same time period. When it comes time for you to get a car or home loan, the lengthy history will work more in your favor than not. Now if you're the person who has a tendency to run up credit cards because the money is available then destroy it. Better your credit score go down than being always in debt.
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