Closing a credit card?

[ID Victim]

What is the name of your state?AZ,

Hello, I have owned only one credit card for last several years, and I have been paying my bills on time, never late.
Of late, I've been wondering if I should just close it altogether and use my debit card in stead - since I really don't need a credit card.

Will it affect my credit history?

 

[HelpinMN]

re

You always want to have a couple of tradelines open. If you close that line you may cause yourself problems in the future. For example some mortgages require a certain number of tradlines to be qualified. If you close all of your credit cards it will also eventually affect your score as any history falls off over time.

My suggestion is always to have 3 credit cards and use them each month for something small, a can of pop, a lunch, a tank of gas etc. Then just pay it off this way you will maintain your credit history.

 

[tholt4]

Additionally, if you make purchases with your credit card instead of a debit card, you are afforded more protection in case of disputes. Some hotels and airlines will not accept debit cards, so if you travel, you might want to hang on to the credit card.