Should I close my credit cards that charge a monthly, annual fee, or high interest?
If you are planning on buying a condo, don’t close any accounts yet. The ratio of revolving credit card debt to available credit limits is a big part of your credit score. You should keep the debt below 30%. Getting them all paid off is even better, especially if you are looking for a mortgage. After you get your condo, close that monthly fee card. At $6 per month that’s $72 a year! I recommend you keep the two oldest major credit cards that do not have monthly or annual fees. Only keep store or gas charge cards that you have some special purpose. Close the rest, but only after you get your mortgage. If you only charge what you can afford to pay in full every month, the interest rate makes no difference. After 7 months to a year, they will start automatically increasing your credit limit. In fact, you may just get the interest rate reduced too.
