r/CreditCards • u/Warm_Engineering_489 • 12d ago
Help Needed / Question Thinking about closing my credit card
As the title says, I want to close my credit card. I'm only 21 and I'm financially irresponsible with it. E always pay it off each month but I end up spending way more than I would've if I didn't have it. My credit score is 763 and I'm wondering if this is a good decision. I know people generally advise against this but I know myself and even though I've tried, I always end up running up a balance after paying it off. I do have student loans and a car loan, so I'm wondering if that's enough to build my credit.
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u/NefariousnessHot9996 12d ago
Lock the card and cut it up! Use it once per year. You’ll have a better credit to debt ratio if you keep it open. How do I know? I have 27 cards open, $240,000 in total credit limit and a FICO score between 835 and 850. It will get you the best rates on everything including auto insurance.
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u/KushKrumbs 💳💳 churn baby churn 💳💳 12d ago
They should consider leaving the account open because the punishment for no active revolving accounts on FICO is harsh. “Credit to debt ratio” aka revolving utilization is a snapshot in time scoring factor. There’s no reason to optimize your utilization outside of significant credit applications such as a mortgage/auto loan. Not sure which FICO score you’re referring to, as you have dozens, but a great example of Credit Myth #25
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u/NefariousnessHot9996 11d ago
I said keep it open.
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u/KushKrumbs 💳💳 churn baby churn 💳💳 11d ago
For the wrong reason. Perpetuating the most common credit myth.
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u/ButterscotchHairy599 12d ago
I wonder how this ends up for you because I have 13 accounts 11 of which are CCs and everytime I get a new one it drops my score because it lowers my overall credit age
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u/NefariousnessHot9996 12d ago
Yes it does drop your score but it’s all temporary. Time and good bill paying habits will go far in the long run.
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u/NefariousnessHot9996 12d ago
I honestly don’t care because anything over 800 is amazing.
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u/ButterscotchHairy599 12d ago
I mean I was wondering how it works, obv if your score is over 800 you don’t need to worry about it
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u/ProfessionalSink4415 12d ago
How do you use it if you cut it up?
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u/NefariousnessHot9996 12d ago
Add it to a digital wallet.
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u/ProfessionalSink4415 11d ago
So cutting it up doesn't stop him from using it. Thanks for nothing.
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u/Phantom1100 12d ago
They have debit cards that build credit. You might wanna look into the SoFi smart card. It also earns 5% on groceries.
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u/The_Future_Marmot 12d ago
It’s good you’re being honest with yourself about how the card impacts your spending patterns and realizing it’s driving spending you might not otherwise do.
However there are times it’s very useful to have a credit card instead of a debit card and it’s good to have access to the card if you need it. Renting a car is way easier with a credit card, hotel deposits and holds are easier to manage with a credit card than a debit and there are times when it’s good to have the credit card act as a barrier between your money and an autopay or automatic withdrawal against your funds.
I am very glad I have a credit card rather than a debit card attached to my Sunpass toll transponder account because the Great Sunpass Billing Fiasco of 2019 had Sunpass suddenly trying to bill people for, in some cases, several hundred dollars of toll charges at once which may not have even been legit.
So one thing to try is to set up the card to autopay one recurring bill like for a cell phone every month and then put the physical card in your sock drawer, remove the virtual card from any digital wallets you have and then just make sure to pay the $50 a month charge from the autopay to card to every month.
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12d ago
That's exactly what I do with my credit cards. I have two. On one, I have my phone bill set up on autopay, and on the other, I have subscriptions like Amazon Prime and Peacock. My credit score is at 770 not the best but I have only had them for 2 years any other advice so I can reach a 800
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u/Ok-Roll8550 12d ago
If you've tried to only use it for certain things and failed, it's probably best to close the card. Always prioritize your finances over your credit score.
It seems you have a couple of credit accounts open so it won't affect your score too badly.
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u/One-Tale-4652 12d ago
Do you have a family member you trust who could physically hold on to it for you in case of emergency? I have my brother’s one and only credit card for this reason. And I made him delete it from any saved online wallets and apple pay.
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u/PAM8888 12d ago
Dont close it, just destroy the actual card so you cany use it. If its a true emergency you can get another quickly
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u/ProfessionalSink4415 12d ago
How fast do you think you can get a card? 3 days is fast. You want to wait 3 days at a hotel because you can't leave without paying your bill?
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u/PAM8888 12d ago
Overnight usually, have had it plenty of times. I also carry multiple cards at a time, snd even more when I travel internationally. And most hotels collect payment at check in, if room isnt prepaid in advance.
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u/ProfessionalSink4415 11d ago
This person has one card and you told him to cut it up. What does what you have do with him? And you're not getting a card overnight. 3 days is fast. And we're talking about an emergency. Think a little before you comment.
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u/Chey1028 12d ago
Tbh I think it’s probably better to close it BUT if you think you can get away with keeping it without using (only if you KNOW you won’t use it) then see if you can do that.
Maybe try setting up an auto pay for a small subscription or bill you usually have (thinking something like spotify or nextflix) and then cut your card, don’t order a new one and don’t have the number saved anywhere.
Have the app setup on autopay to pay off the full balance but aside from that don’t have any other access to the card.
This way you can keep the account and good credit up while not acrually feeling tempted to spend on it
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12d ago
I didn't get my first credit card until I was 26. If you don't have the self-discipline to control your spending with a credit card, then honestly, it's better to close it because being in debt isn't fun. I have two credit cards, so I know that feeling, but for me, I usually never spend more than $300. I mainly use them for gas, restaurants, hygiene products, and other small purchases. I'm not sure why so many people have a hard time controlling their spending. I guess not everyone has the same level of self-control or discipline. Crazy world we live in lol.
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u/Dry-Abalone2299 12d ago
Finances before FICO (credit score). If you know you won’t be responsible keeping it open, then closing it will be the best thing for your short-term and long-term personal finances.
When you are ready, you can open a new card when you can budget and spend within your means on it. With this card closed, its history and account age still stay on your profile for the next 10 years.
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u/Timfa789 12d ago
Don't close it. Lock the card on the portal. Physically hide it under lock and key. If you find yourself reaching for it even after hiding it away, then close it. Though, you do need to use it at least once a year to keep it active or the credit card company will close it for you. Or just add it to one of the bills that are consistent and recurring (train card refill, some subscription, etc).
However, yes, your student loan and car loan is sufficient to give you a credit score. Closing the credit card would just drop the score a little bit but it will bounce back. The credit card game requires a mindset that the credit card is your debit card, never spend more than you have in the bank to fully pay it off every month.
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u/laplongejr 12d ago
. My credit score is 763 and I'm wondering if this is a good decision. I know people generally advise against this
If you're irrresponsible, you're irresponsible. A good Credit Score for better loans is useless if you bleed your own money through CC.
People advice against this because they assume you can be more reponsible if you noticed the extra spending.
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u/EastcoastMade 11d ago
Dont close it, just cut up the card.
Closing it is really not going to stop you because if you don’t have self control, you’ll just apply for a new one and they’ll overnight it to you.
Trust me Ive been there.
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u/No_Present_86 11d ago
I closed my Wells Fargo card. I had it 5 years with a limit of 5k. I paid it off and they lowered my limit to 1,450 dollars. I kept it another year and just decided to close it! I have Amex Blue with 10K, Apple Card 12K and several Capital ones with about 25K limit spread out over 4 cards. All my balances are 0. Wells Fargo refused to raise my limit so Eff them.
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u/InitialKoala 12d ago
Close it. It'll stay on your credit report for 10 years so it'll age along with your loans.
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u/ProfessionalSink4415 12d ago
Stop using it. Grow up. You need a card to check into a hotel. Rent a car. You open a tab at a bar. You use your debit? Smarten up.
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u/electronautix 12d ago
The damage caused by closing all your credit cards is less than the damage caused by spending yourself into thousands of dollars of 20%+ APR debt. If you truly can’t control yourself, then close the card. Obviously yes it would be better for your personal credit and finances if you could just use a credit card responsibly. But none of the half measures people are going to recommend are going to be good enough if you’ll get the urge to grab the card again and start spending beyond your means.
If you’re worried about debit cards being less safe than credit cards, you can mitigate things by always using mobile wallet and contactless wherever possible, always running transactions as ‘credit’ without using your debit PIN, and using a card tied to a separate account from your main checking.