Should You Ever Close Credit Cards

I closed about 15 accounts and you are about to see exactly what has happened to my credit score in just a moment. The main reason people ask If it’s okay to close accounts is because they get worried about their credit score. I have also frozen my TransUnion, Equifax, and even my Experian accounts. No new lines of credit can be opened in my name, and no credit cards exist to report anything. 💲Patreon Exclusive💲 https://www.patreon.com/tommybryson 😎Call Me😎: https://bit.ly/30IBr0i 😎Second Channel😎: https://bit.ly/3c4sVPS 👨🏽‍💻Financial Freedom Course👨🏽‍💻$100 OFF CODE: LONGTERM Link: https://longtermteam.teachable.com/p/financial-freedom-steps-from-nothing-to-freedom 1. The negative effect of closing a credit card Utilization Ratio may change: - This is the percentage of credit you are using, compared to how much you have been giving For example, I give you a credit line of $500 and Chase gives you another of $500 - Right now you are using about $300 and have a utilization of 30% because you are only using 30% - But you close me out, and now you only have chase with $500, your utilization goes up to 60% which not good - You usually want this below 10% anyways Reduced your credit Length - Closing your oldest card can lower your length which is about 15% of your score Your credit mix - They want to know if you can handle different types of debt Access to Capital - Once you close that’s it, you can't borrow that money anymore Truth is this: if you were using a product that you no longer cared about, like Tmobile for example ( and they tell you this) - If you cancel yes you'll save $100 with another company - But no more international roaming - No more free Netflix - Not more tmobile Tuesday - Your response would be, who cares 2. What people tell you - If it doesn’t have an annual fee then just keep open - So your credit score can stay as high as possible - But again credit scores don’t matter 3. Credit score Truth is: We say we need credit to buy things ( but what are those things really ) - House: Manuel underwriting ( that simple ) - Car: if you need a car and you don’t have money ( but something used, cheap, and reliable - Stuff: save up or don’t buy ( those are options, you don’t have to get whatever you want, just because you can swipe a card ) 4. My advice - If you don’t want to play the credit game anymore - I would close it out and call it a day - Focus on building real wealth In conclusion: - If you care about credit, it’ll hurt it - If you don’t, it doesn’t matter - Don’t close things out, if you are shopping for a mortgage at this current moment ( wait until that’s done and then close it out ) * PRO TIP* INFORMATION IS EVERYTHING 💲Patreon Exclusive💲 https://www.patreon.com/tommybryson 👕Merch👕 https://teespring.com/stores/tommybryson ✅2 FREE AUDIOBOOKS✅ https://amzn.to/2Enayo8¬¬¬ 🎁ACORN FREE $5🎁 Link: https://acorns.com/invite/38EYSU ⚡FREE KINDLE UNLIMITED⚡ (traditional reading) Link: https://amzn.to/2VGbxt9 👨🏽‍💻DISCORD PRIVATE GROUP👨🏽‍💻 https://discord.gg/EcZEHpA My Camera Gear: https://www.amazon.com/shop/tommybryson ✔ Help Us Reach 600,000 Subscribers: https://goo.gl/0wvm6w 😎All My Social Media😎 Link: https://linktr.ee/tommybryson --- Disclosure & Educational Disclaimer: Some links in this video may be affiliate links, and I may earn a commission. Content is educational and accurate as of posting; offers may change. I’m an accountant but not your accountant; always consult your own accountant/CPA or financial advisor. No income or results are guaranteed.