Quote:
Originally posted by LoveMyKeyKKG
Does anyone know if it is wise to close unused credit card accounts if you are trying to improve your credit score?
My credit card companies keep raising my available credit and now I have more than $40,000 worth! Will that hurt me when I apply for a mortgage in about a year? I've heard that you are seen as a risk if you have too much available credit.
Other than that I have low balances on my cards that I will have paid off in the next few months, I always make payments on time and have a decent credit score. I plan to buy a house in about a year and a half.
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To echo what others are saying...yes it's wise to close lines that you aren't using. I'm an insurance underwriter and I've had agents who tell me that their insured has a wonderful "lifestyle" and owns everything outright (no loans/leins) but has a "bad score." After they close a few open lines the scores do go up some, so I would definetely feel this is a factor.
Another thing about those raised limits your getting, just because they are raising them doesn't mean that you have to take them. I have a friend who actually calls her credit card companies and request that they lower her limits back to what they were or to what she is comfortable with having.