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If you're applying for a loan, I would use them for a very small purchase, then pay it off. Why? Because when you close your account, it lowers your score. One aspect of your credit score is the length of time you had your credit cards open for. When you close those accounts, that length will decrease. But if you don't foresee yourself taking out a loan, then go ahead and close them down yourself. I don't think it would be that big of a hit and it's going to be temporary.
No, I hope I won't be applying for a loan for a long time. Last car I bought was an R title and I am happy with it, paid cash. I don't like loans. That was not always the case, however.
I have too many credit cards, many of which have not been used in years. How do I close them or cancel them without taking a hit on my credit score? We owe nothing.
Why would you have so many credit cards without understanding how they affect your credit score?
As long as you're not looking for a mortgage or car loan in the near future, go ahead and close them.
Since all accounts are zero, your credit utilization won't take a hit, it will be your length of credit accounts which is only 15% of your overall credit score that will be temporarily impacted.
Full picture
Payment history 35%
Credit utilization 30%
Length of credit history 15%
Mix of accounts 10%
New credit inquiries 10%
What's "too many" mean exactly?
Depending on the type of cards go ahead and close them down, it won't hurt you much. If they are store cards or from specific places you don't need a CC for it's probably best to shut them down. If they are bank cards, Visa, MC, Discover, Amex, then keep the ones that serve you best along with the oldest one just for histories sake.
age of credit is also a factor so you may wish to keep the cards that you have had the longest.
That's the big thing. I closed 2 cards that were 6 years old and I have 3 more, and when I did that, the age went from 5 years avg to 2.5 and went from 700+ to 600....Ouch....
The credit score impact of closing a card is minimal and temporary. Maybe if you are closing multiple cards at once it will have a severe effect. Chances are if the cards were not used for a year or longer the bank closed them already.
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