Personal Finance

How do I close LOC/CC accounts without hurting my credit?

  • Last Updated:
  • Jan 20th, 2014 7:47 pm
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[OP]
Member
Mar 17, 2010
233 posts
14 upvotes
Vancouver

How do I close LOC/CC accounts without hurting my credit?

I've consolidated my debt into a single account, and have been sticking with a budgeting plan that will have the majority of this paid off in a year. I still have some other credit cards and a line of credit with rather high rates that are now paid off which I would like to close, but I've heard that this can negatively affect my credit, which is otherwise very good. Is this true? I want to close off two cards and keep one with my LOC, and reduce the credit limit on those. I don't like the idea of having tens of thousands of dollars in 'virtual debt' to my name, not to mention the temptation of all that free money sitting there should I lose my discipline some time in the future.
3 replies
Sr. Member
Dec 26, 2013
668 posts
58 upvotes
If you can't handle credit (free money?!), why do you care about your credit score?
Banned
User avatar
Feb 15, 2008
26318 posts
3201 upvotes
Calgary
Mindfulmonkey wrote:
Jan 20th, 2014 5:44 pm
If you can't handle credit (free money?!), why do you care about your credit score?
I think the OP laid the reasons out, he just doesn't want the temptation. I tend to agree.

My suggestion to the OP would be to continue to build up assets, and eventually, the assets, paid off in cash, should be good enough so that you won't even need credit. Other than a credit card that is just used as a payment card with the bill paid in full monthly.

My other suggestion would be that the OP really shouldn't overly worry about a credit rating.
TodayHello wrote:
Oct 16th, 2012 9:06 pm
...The Banks are smarter than you - they have floors full of people whose job it is to read Mark77 posts...
Jr. Member
Oct 27, 2009
139 posts
257 upvotes
Montreal
You should keep the LOC in case of emergencies until you build enough assets/savings like Mark77 said. What I have noticed over the years is that interest rates from the same LOC tend to go down with time. If, for any reason, you still want to close said credit, it won't impact your score much. If it does, then your score wasn't good to begin with.

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