Should I keep open or close my visa card with a $500 credit limit?

[Date_a_Snob]

Updates

+1 y

To everyone who provided their opinion thank you! I did end up cancelling my credit card. The feeling I got knowing I was one step closing to be debt free was worth more to me than the dip in my credit score.

[Static_In_The_Attic]

Establishing credit or earning a higher credit score is a wonderful thing especially if that card has a zero balance overtime. Some say if you close your credit card account it will hurt your credit card score & if truth be told it could & most likely your credit card score will dip a little. On the other side of things some say if you don’t use your card for a long time & your lender closes the account it won’t hurt your score & that is not 100% true as well because there is something called a credit utilization ratio. As for me I have one credit card & a long time ago I had three & two were unused so I closed them & although my credit score dipped a little it did go back up overtime.

Word to the wise if you are applying for a mortgage don’t go playing around with opening & closing credit card account during the process. Also during the mortgage process & before keep your credit card usage low & pay your bill on time & mortgage lenders like seeing that.

When it comes to a credit card if I don’t use it I simply close it & I’m not one of these nuts that watch my credit score every three minutes. Your score will go up & down all the time.

[jamesgoldman]

If it costs nothing keep it, it is has a few then drop it if you have a higher limit available

I have £1,200 between 2 cards (£1,000 and £200) but neither is costing anything to live in the back of my wallet

[Julie_TS]

You should never cancel credit once it is already established as that can affect your credit. If you have another, newer card that you plan to use, that's fine. But, keeping an old card and using it occasionally in addition to your new card will actually help your credit score. Actually it is recommended to utilize two to three different credit accounts if you are trying to increase your credit score. But, obviously you don't want to run huge balances on multiple cards either. Good luck!!

#dontcancelestablishedcredit

[Julie_TS]

Thanks for the MHO!!!

[mandyfire98]

Keep it open but don't ever use it. Cut it up. I heard if you cancel you credit cards it actually will go against your credit.

[MikeTheBartender]

Depends how many other cards you have? I imagine no annual fee? Any perks? Foreign transaction fees?

[Jkgordon]

Keep it treat yourself shoes perfume and a takeout restaurant like red lobster since they are cheap and tasty

[Iron_Man]

Keep it going you never know if an emergency comes up if you get a flat tire when driving or if you need to have your car towed

[Date_a_Snob]

I recently did lock my keys in my car and the cost to have it unlocked was $80 which I paid for with credit. Overall though the number of times this has happened is once in the last six years

[Iron_Man]

Anything can come up from Something simple to something important. Keep the credit card open just don’t use it unless it’s absolutely necessary

[Likes2drive]

Keep it open especially if it costs nothing to have, it’s good on your credit score the more available credit you have

[Sparkie460]

If you have other credit cards that you use regularly, I would close it.

[Date_a_Snob]

I do

[zagor]

Either cancel it (assuming you have other cards) or ask them to raise the limit.

[Guido]

If that is the best limit they are offering then they can lose my business to other companies.

[Fireguy17]

Keep it for internet purchases.

[Wise4myage]

Keep it open and use it at Christmas.

[msc545]

why close it?

[Date_a_Snob]

eseentially my limit is so low it makes shopping at certain stores like Costco difficult

[msc545]

Okay either get the limit increased or don't use it

[Date_a_Snob]

I canceled my card a week ago

[msc545]

good!

[In_Trance]

what for?

[eagle1951]

closed

[Date_a_Snob]

Im leaning in that direction

[ThebestIndian]

Close it.