Forums
I am getting a pretty big tax return check this year and I want to pay off my credit cards. I have 3 credit cards, and 2 store credit cards. I am planning on paying off the credit cards (Visa/MC) and paying down the store credit cards.
I've heard it's better to completely pay off your balance and leave the card open. I've also heard it's better to pay down to about 1/3 of the balance and then keep paying on it.
I'd prefer to just pay them off. Do I have to close the cards? I have heard split opinions as to whether I should close the cards, or leave them open.
What should I do??
I am glad to see that you are taking care of your debts, I really appreciate the way you allotted you tax returns!
You haven’t mentioned the present status of your card accounts. It is not bad to maintain manageable balance on your credit cards. But if they payments are due, I would pay them off completely.
I have also got mixed feedback about keeping accounts open or get them closed. If you keep your paid accounts open, there is no problem, but the risk of fraudulent activity stays live and may create trouble for you later on.
On the other hand, by closing your open account you reduce your total available balance and that may hurt your credit score because credit scoring formula considers the ratio of your total debt to available credit.
IMO, you may close the account that you would never use in future but not all in a hit, do it slowly.
Morgage paid
Is it better to pay off the morgage or keepm it open with -R1.00