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Question for you credit experts

Old 12-04-2014, 03:46 AM
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I have one primary credit card that I currently have a balance on. Pretty low interest and I always pay more than the minimum and use this card for online bill pay and gas (racking up frequent flier miles).

I have another card that I applied for to buy a trolling motor at Bass Pro for the 10% discount. I immediately paid it off completely.

Would it help my credit score more to cancel the Bass Pro card, keep it but don't use it, or use it minimally and pay it off completely?

Looking at buying a new house in the near future and trying to get the best rate available.

(The only debt we have is current mortgage and this credit card, and the reason it had a balance was I used it to pay for some medical procedures).

Thanks much.
bigjohnnc is offline  
Old 12-04-2014, 03:54 AM
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Use it minimally and pay in full. Also you're paying interest on the other card the FF miles may be a wash... Do the math. Pay it off too.
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Old 12-04-2014, 03:55 AM
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Length of time you have had the credit accounts and percentage of utilization of credit are positives for your credit score. Cancelling the credit card could actually lower your score a little. I would pay it down and keep it.
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Old 12-04-2014, 04:07 AM
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Keep it open with about a $5 balance
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Old 12-04-2014, 04:42 AM
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Use the bass pro but pay it off completely. If you cannot pay the other card off at this Time, get the card balance down to less than 50% of the credit limit on that card.

Try not to open any other cards or accounts if your goal is to buy a house. Every account is another credit check. The longer the accounts are open, the better.
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Old 12-04-2014, 04:46 AM
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One of the primary criteria a bank looks at is your credit score. A large part of that score are the balances owed on open accounts compared to their credit limits. Low or zero balance with a large limit is good...large balances at or close to the limit hurts your score. As long as you use a CC every year, it won't close unless you request it or there is a problem with payments and the holder closes it.
It's OK to pay off a CC every month...no need to carry a balance.
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