Should I keep credit card?

Garyh79

So I have finally managed to obtain a loan to consolidate 3 credit cards and have a date of being debt free but I have a question.

i have paid off all 3 cards and closed 2.

my clear score says I should use less than my available credit but if I close the last card surely I will then be using more than 50% of my available credit? Should I close the account or keep it open for the benefit of my credit score?

Willing2Learn

Garyh79 said:

So I have finally managed to obtain a loan to consolidate 3 credit cards and have a date of being debt free 

Be really mindful of how you are thinking about this.  ie You won't be 'debt free' when you consolidate.  In fact, by consolidating, you are at risk of doubling debt.

Your credit score drop when there are any changes to the data in your file.  But since lenders neither use nor see your score, it does not really matter. 

Have you addressed the problems with your monthly budget so that you are not running up debt?

Garyh79

Yes I am aware hence I said having a date for being debt free.

So are you saying I should close the 3rd credit card account?

Willing2Learn

That all depends on how well you can conduct your credit accounts.

Speaking generally, it is typically a good idea to have a few cards.  This protects you from a Visa or Mastercard IT meltdown.  It also means you can have different cards with differing benefits  (ie free foreign transactions, rewards, cashbacks etc.).  But you need to have a tight rein of your monthly budget for it to work.