To Cancel an Account or Not

EddyDizzle · 11-03-2009, 09:26 AM

Hello everyone, I come to the forum with a question regarding whether or not I should cancel an account I have which I have that has been carrying no balance.

I currently have 3 open credit accounts...

#1 (The one I have considered cancelling) was an account I opened to purchase a bed. It has a $5,000 LOC and I used $900 of it. I paid it off in 14 months and it has had no balance for 2 or 3 months now.

#2 is a credit card that I have had for about two years now. I used it sparingly just to maintain a credit history and carry a balance. I made some minium payments, some double minimums and equal as many payments between 50-100 to cut the balance in half. This card currently has no balance either and has not for 3-4 months. I have a LOC of $2,000 on this account.

#3 is the card I am currently using. I transfered a $200 balance from #2 to #3 to take advantage of a 0% balance transfer offer that this company had mailed to me. Since I am trying to build a credit history I figured it would be beneficial. Currently I have a $300 balance on this card. I COULD pay the card off if I wanted to but since I don't have anything else to pay for I figured I would just make small payments and small purchase and carry a small balance.

The only thing is, this account has the smallest LOC (1500) of all. But does this matter to the credit beaureas since I'm not carrying any other debts?

My main question is whether or not I should get rid of that big account. Since I really don't plan on buying furniture from the place ever again. But from the rest of the stuff I wrote any general advice is welcome.

I feel like an idiot on this forum since I graduated with a BA in Finance last November. But at my university at least you read book after book but they don't give you practicle knowledge like this. Kind of a slap in the face.

Thank you.

(Also I will add.. I have NOTHING else in my name. No cell phones, even my apartment is under my girlfriend and our her friends name (I'm third on the lease but I don't bother even having my name on the reciepts) Even my college loans are in my parents name. (Parents weren't familar with how to put them in mine.) So I really have no credit history other than all of this. Its not great, but at least I've never put myself into a bad place financially.)

EddyDizzle · 11-04-2009, 05:18 AM

Is this in the wrong forum or do you just have no opinions? Sorry if it is.

Thanks.

Dr Dean · 11-04-2009, 11:48 AM

Eddy, sounds like you are doing a good job with your money. The credit will build over time. I don't think leaving the accounts open hurts you. Unless it tempts you to over-spend.

The most important thing to build up credit is to pay on time, and not let any balance get to over 50% of your limit. Having the rent lease in your name would probably be worth doing, unless you plan on moving soon and not worth the trouble.

I am not sure there is a real advantage to carrying a balance, just to do it, even in a 0% card account.

Good luck and keep up the good work.

EddyDizzle · 11-05-2009, 09:27 AM

Thank you Dr. Dean.

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11-03-2009, 09:26 AM	#1
EddyDizzle Junior Member Join Date: Nov 2009 Posts: 3 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (10)	To Cancel an Account or Not Hello everyone, I come to the forum with a question regarding whether or not I should cancel an account I have which I have that has been carrying no balance. I currently have 3 open credit accounts... #1 (The one I have considered cancelling) was an account I opened to purchase a bed. It has a $5,000 LOC and I used $900 of it. I paid it off in 14 months and it has had no balance for 2 or 3 months now. #2 is a credit card that I have had for about two years now. I used it sparingly just to maintain a credit history and carry a balance. I made some minium payments, some double minimums and equal as many payments between 50-100 to cut the balance in half. This card currently has no balance either and has not for 3-4 months. I have a LOC of $2,000 on this account. #3 is the card I am currently using. I transfered a $200 balance from #2 to #3 to take advantage of a 0% balance transfer offer that this company had mailed to me. Since I am trying to build a credit history I figured it would be beneficial. Currently I have a $300 balance on this card. I COULD pay the card off if I wanted to but since I don't have anything else to pay for I figured I would just make small payments and small purchase and carry a small balance. The only thing is, this account has the smallest LOC (1500) of all. But does this matter to the credit beaureas since I'm not carrying any other debts? My main question is whether or not I should get rid of that big account. Since I really don't plan on buying furniture from the place ever again. But from the rest of the stuff I wrote any general advice is welcome. I feel like an idiot on this forum since I graduated with a BA in Finance last November. But at my university at least you read book after book but they don't give you practicle knowledge like this. Kind of a slap in the face. Thank you. (Also I will add.. I have NOTHING else in my name. No cell phones, even my apartment is under my girlfriend and our her friends name (I'm third on the lease but I don't bother even having my name on the reciepts) Even my college loans are in my parents name. (Parents weren't familar with how to put them in mine.) So I really have no credit history other than all of this. Its not great, but at least I've never put myself into a bad place financially.)

11-04-2009, 05:18 AM	#2
EddyDizzle Junior Member Join Date: Nov 2009 Posts: 3 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (10)	Is this in the wrong forum or do you just have no opinions? Sorry if it is. Thanks.

11-04-2009, 11:48 AM	#3
Dr Dean Junior Member Join Date: Oct 2009 Location: Georgia Posts: 14 Thanks: 1 Thanked 1 Time in 1 Post Reputation: (11)	Accounts Eddy, sounds like you are doing a good job with your money. The credit will build over time. I don't think leaving the accounts open hurts you. Unless it tempts you to over-spend. The most important thing to build up credit is to pay on time, and not let any balance get to over 50% of your limit. Having the rent lease in your name would probably be worth doing, unless you plan on moving soon and not worth the trouble. I am not sure there is a real advantage to carrying a balance, just to do it, even in a 0% card account. Good luck and keep up the good work.

11-05-2009, 09:27 AM	#4
EddyDizzle Junior Member Join Date: Nov 2009 Posts: 3 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (10)	Thank you Dr. Dean.