So, we got a new computer earlier this year and got the promotional financing - well, long story short, there were some technical issues, so I had a hard time using my husband's pre-approval so I got myself approved and used that account. So now my husband has a account sitting out there with Dell doing nothing. Is it better to close it or leave it open with no activity?

Also, once I pay off the balance on my account, we won't be using it anymore. Should I then close it or leave it open with no activity?

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Mom to Kaylee (10/2006)
Waiting on our second bundle of joy to arrive January 2009!

You should close the accounts if you are no longer going to use them. Open lines of credit or credit cards will have a negative impact on your credit score. There may not be a balance now, but there could be at some time.

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Jennifer

I've heard it looks good to have lines of credit that are paid off on your record.

Good question I an curious to see what others post. I've read that you should close multiple accounts at the same time. You should wait 6 month to a year between closing them. I have heard financial advisors on both ends of the spectrum. Do you have a lot of credit lines? How many have balances?

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I just read two days ago, that if you have open accounts with nothing going on with them, that's better than closing all accounts you don't use. It shows lenders and whoever else looks at it, that you can control your spending, and repay on time. I'd leave it there.
ETA: I have 30 open accounts on my credit report (only 5 or 10 of which do I actually use), and I have no negative items on mine.

Is the Dell account one of those Dell financing accounts that can only be used to buy from Dell (similar to a store credit card)? If so, I'd say close it when it's paid off - and make sure to pay it off before the deadline, because the zero-percent deals often have the catch that if you're late, they will charge back interest as well.

The account will still show up on your credit report after it's closed, but it won't be a negative ding just because it's a closed account. Open accounts with no balance will help your available-credit ratio (the ratio of available credit to used credit), but as long as your other credit accounts aren't maxed out, I wouldn't keep a store-specific account open if you aren't going to use it again.

Yeah, I know there are all sorts of philosophies out there. Even still, there are some accounts I close and some I keep open. I tend to close accounts with low credit limits or high interest rates, especially if they are relatively new. For instance, I got a credit approval for the purchase of my new laptop but the interest rate came in much too high for my taste. I closed the account immediately and used another way to purchase the computer.

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"I've been rich and I've been poor but independently wealthy is where it is at."

If you will be getting a loan for something (like a house or car) within six months, leave the account open (as long as there aren't hidden charges). Closing accounts temporarily lowers your credit score. However, if you are at least six months from getting a loan for a major purchase, you can close the account.

I have several accounts I will close after our house is built. We have to get a building loan (waiting for the building permit at the moment) and then convert it to a home loan. I won't close any accounts until after we get our home loan because closing any accounts now could make our home loan interest rate higher.

I was told recently to keep major bank credit cards open, even if you are not using them. Smaller accounts like department stores and such don't really matter so closing them is fine.
As for your dell account - it depends on who the financing is through. If its through a large bank such as capital one, Washington mutual, whatever... I'd keep it open. If not as far as I understand it doesn't really matter.

Yes, this is like a store credit card - its a credit card for Dell. I will probably get DH to go ahead and close his. I have everything straight to pay mine off before the promotional financing is over - I can only imagine how much my balance would change if I didn't. We've been paying some each month on it.

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Mom to Kaylee (10/2006)
Waiting on our second bundle of joy to arrive January 2009!