How badly is Credit score affected when you close you accounts?

[Cinna]

Please advise. My fiance and I are getting married in December (hoping to, or January of 2011) and have to finance the entire wedding/honeymoon/rings by ourselves and would like to know if it's a horrible idea.

I know it's different for every situation. I have 4 credit cards. 2 with different accounts and 2 with the same account under Chase.

I only opened one a couple years back but one day I got a letter in the mail saying they increased my credit... but it had a different account number. I called and they said I opened two cards with them, not just one. I've never even knew the other existed and they refused to do anything about it saying it was my fault. So I was stuck with one card I don't use and one I use here and there.

Last month, I didn't receive my bill and I thought it would okay since I didn't think I spent anything with that card. I should have called to double check but this was with all the snow blizzards and my hospitalization of swine flu so I just forgot in the hecticness that I didn't receive two bills, just one statement with zero balance (the one that I never use)

Today I got this months statement in the mail and I owe over 30$ in late fees, and on top of that interest at 29.99% because I didn't pay 60.00 on my last month's bill. I couldn't understand how my late fees + interest owed could be well over half of what I had owed but apparently they take last months and this months statement and put it together, taking the fees and interest from the total. (Which makes no sense to me) They absolutely refuse to waive anything saying it's all my fault, and that I DEFINITELY received the statement since they didn't get it returned to them.

Long story short, I want to cancel my cards with them so I don't have the urge to make a big purchase with them later during my wedding time but how badly would that affect my credit score. I don't make any huge purchases with any of my cards so I feel like I'm just starting out with my credit score.

Any help would be appreciated. Thank You!

 

[MichelleCarmen]

You pretty much have to have at least one credit card these days to up your FICO score. The more cards you have and as long as you have very little debt, your ratio of what you owe vs. what your credit lines are will remain low and you'll have a great score.

When I was in my early 20s, I had some dept. store cards that I closed. Later I decide to reopen them as recommended by a friend who works in the mortgage industry to help boost my credit score. Now, I have over 10 cards and my credit rating is 720 or 730, mostly because I don't even use the cards.

If you currently don't make any big purchases (as you just said in your post) then don't worry about it. If you need help with self-control, stick the cards in your safe deposit box so you can't easily access them

 

[Cinna]

Thanks for the good news!!

Haha, how about I freeze them in a block of ice like that movie like the movie Shopaholic?

And later on open more credit cards after carefully looking at the rates?

But hmm.. I mean I spend a total of about 800 a month in credit cards. Never been late on a payment once. And with chase only about 200 or so. I'm safe to not consider that big purchases right? All my BIG purchases are made by check linked to my direct deposit.

 

[iheartscience]

I'd cancel it immediately and tell them why. You can open up another account with a different bank/credit card company. No way would I keep a card that screwed me over like that.

ETA wait-just realized you mentioned you and your fiance "financing" your wedding yourselves. Do you mean you wanted to put everything on your credit cards? Because that's a terrible idea, especially if you now have a 29.9% rate.

 

[MichelleCarmen]

Date: 3/19/2010 8:26:57 PM
Author: Cinna
Thanks for the good news!!

Haha, how about I freeze them in a block of ice like that movie like the movie Shopaholic?

And later on open more credit cards after carefully looking at the rates?

But hmm.. I mean I spend a total of about 800 a month in credit cards. Never been late on a payment once. And with chase only about 200 or so. I''m safe to not consider that big purchases right? All my BIG purchases are made by check linked to my direct deposit.

Are you paying off your credit cards at the end of the month?

 

[Cinna]

Yes, I've never let a payment roll over or any interest collect. I pay them in full at the end of the month every single month.

Thing2of2: I know right?! They kept on talking to me like I was being totally unreasonable! They even refused to waive a fee of 2.10 cents. The first lady said she would and then hung up on me when I asked to speak with her manager. Then I called back, got another guy who said he was the supervisor, highest of rank three and yet could not contact Elizabeth since they have thousands of people in call centers so since they have no record of her waiving it that he could not waive a single thing. I said I called five minutes ago, have her name and you have her on record that I called her. But he said "Well I have no way of contacting her, so I don't know that."

 

[rierie26]

Are your other credit cards older than these two? Longer credit history helps your score. If the cards you want to close are older, I''d "put them on ice" and just check the balance once in awhile to make sure no one''s stolen your identity. The only problem with not using them though is that the bank might close them for inactivity.

Are you carrying a balance on the cards you want to close? If you still have a balance owing on the cards you want to close, it might ding your score as it lowers the amount of credit you have available vs. the amount of credit used.

 

[Cinna]

Date: 3/19/2010 8:42:39 PM
Author: Kitcha
Are your other credit cards older than these two? Longer credit history helps your score. If the cards you want to close are older, I'd 'put them on ice' and just check the balance once in awhile to make sure no one's stolen your identity. The only problem with not using them though is that the bank might close them for inactivity.


Are you carrying a balance on the cards you want to close? If you still have a balance owing on the cards you want to close, it might ding your score as it lowers the amount of credit you have available vs. the amount of credit used.

One is by a year and the other was opened around the same time. I'm not a big credit card person. I just used to pay with my debit for everything I purchased before I got credit cards about 4 years ago (only opened and used them to build my credit). I plan to pay off the balance in full before I close them but am afraid to close them in case it damages my credit score. I'm literally just building it so if I needed to take out a loan or such in the coming months I'd want to know that the option is available.
I'm just sick of dealing with them, and even though I don't even do anything they just continue to make issues for me.... like opening another account etc. But want to minimize any damage with the credit score due to the upcoming wedding finances.