Is it better for your credit score to close unused credit cards or leave them open without pay?
I have several cards Credit have’t used that in a long time. Should I close these accounts or leave them open? How can it affect my credit score?
if it receives no annual fee if you close Coz they open lower your score
I was wondering about credit cards, if theres no annual fee, do i still have to pay anything even if i dont borrow money or dont use my card at all.
Am I right? that you only pay APR on transactions and money you borrow / owe the credit card.
I wont have to pay anything monthly if I dont use my card and dont owe anything on it will I.
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As long as there is no annual fee you will only have to pay for credit card transactions such as purchases, cash advances or balance transfers. If you don’t have any transactions there will be no charge. I agree with one of the other answers that you may want to use the card if you want to build credit, but if your credit is good and established don’t make any transactions and pay for charges and donate to the morons running the banks and issuing the bank credit cards.
No you dont have to pay anything. However IF you want to establish good credit ( in order to buy a house or car in the future) You should use it once and awhile and pay the balance in FULL each month when using it. Lenders want to see if your capable of paying off your bills…. AND keep in mind Banks will close the card if not in use for a year – just so you know. So use it – fast food, drug stores, gas etc….plus you can get cash/gift rewards (if you card gives you rewards!)
Nope. Consider the APR is just an equation that goes off the money the you spend/use. They need a dollar amount to figure out the APR. No matter what, if you multiply anything to zero, your sum will be zero. Therefor you don’t have to pay anything.
Like you said, theres no annual fee, so the only way you have a balance is if you use that specific credit card. Although the company might close your account after a few months with nothing being charged to that card.
no annual fee and no balance on the card? you dont owe a thing. But keep an eye on your statement. CC companys arnt doing so hot, so they can change your contract and add an annuel fee for no reason at all. So always check your statements regardless.
Understanding credit cards and and how to manage them intelligently is an important part of almost everyone’s life.
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Most of them do have an annual fee and some of them do charge you a fee for non usage.
If you don’t use the card it will probably get cancelled.
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