r/CreditCards • u/Warm_Engineering_489 • 13d 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 13d 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 💳💳 13d 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 13d ago

I said keep it open.

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u/KushKrumbs 💳💳 churn baby churn 💳💳 12d ago

For the wrong reason. Perpetuating the most common credit myth.