If I close some of my credit accounts that are paid in full, will that hurt my credit?


Question:
I have a lot of open accounts that are paid off, and I am trying to clean up my credit report. Should I close these accounts?

Answers:
No. Closing accounts, not only limits the payment hisotry on the active accounts you have, but also it shortens the average age of accounts making it look like you've established credit more recently than you have, and most of all, the available credit making it look like you're borrowing more than what you're capable of borrowing. Once you've applied and gotten approved for the card, and paid on it for some time, there's no sense in cancelling it now. Just make very small purchases on all your cards that can be easily paid off on time every month in order to show activity. That way, those accounts will show activity and your score will rise again.
I don't think it will be bad for your credit score. I would close the accounts I don't use.
Not necessarily, remember that average age of your accounts is one of the components in your credit score. Do NOT close very old accounts. Possibly you could consolidate credit lines from accounts from the same company (Citi, Chase AMEX) and then close the NEWEST cards.

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