Is It Bad to Have a Lot of Credit Cards with Zero Balance?

People always wonder what to do about their credit cards with zero balances. Should they close them or keep them open? As a matter of fact, the average person has 3.8 credit cards, according to Experian. Is it bad to have a lot of credit cards with zero balances? The answer to this question depends on your personal circumstances.

It is not bad to have a lot of credit cards with zero balances if you are using them responsibly. In fact, it can actually be a good thing. It shows that you are managing your finances well and not maxing out your credit cards.

In this article, we’ll explore some reasons to keep unused accounts open and what they do to your credit score. We’ll also examine what happens if you close an unused account. Here are some things to consider when closing an unused credit card account.

Keep Credit Cards with Zero Balance Open

While it may seem like a hassle to keep unused accounts open on credit cards with zero-balance payments, it is vital to avoid complacency. Inadequate use of unused accounts may cause the card issuer to close your account, which will damage your credit score and diminish the benefits you’ve earned. You can avoid this dilemma by keeping unused accounts open.

If you have multiple credit cards with the same issuer, consider making a balance transfer instead. There are many online store credit cards with guaranteed approval that occasionally offer balance transfer terms.

Some banks have closed unused accounts because it is hard to evaluate the creditworthiness of consumers. Others, however, may not want to cut their credit lines because they aren’t actively using the cards.

If you’re unsure of whether a closed account will affect your credit score, contact the issuer. They may be able to help you re-open your closed account, so check with them first.

Best Time to Keep Unused Credit Cards Open

The best time to keep unused credit card accounts open is three to six months. Closed accounts can hurt your credit score if you have a history of late payments. However, if you have a recent major purchase to make, you might want to keep them open. Closing unused accounts will also increase your utilization ratio and hurt your credit score.

Credit scores are used for everything, including automobiles. You can see the credit score needed to buy a car at Carmax.

Even if the cards are not used often, you may want to keep them open if you’re concerned about fraud.

Benefits of Keeping Zero Balance Credit Card Accounts Open

You Build Credit History

Keeping unused account opens is beneficial for those who wish to build a long credit history. Keeping these accounts open will help you establish your credit history. This will make it easier for you to get a loan or apply for new credit. A longer credit history means a lower rate of interest and a lower interest rate. If you’re unsure whether to keep an account open or close it, talk to your personal financial coach.

You Build Your Credit Score

It’s important to keep unused credit card accounts open to build your credit score. Closing an unused credit card can damage your credit score by as much as 10%. However, if you don’t plan on using it soon, you can always request a new one from the lender. That way, your credit score will be more positive. And you’ll benefit from lower annual fees as well.

0% Intro APR Credit Cards Can Help You Pay Off Large Purchases

The best way to avoid being turned down for 0% APR credit cards is to shop around for the best offer. These balance transfer credit cards usually have low introductory rates and require that you have excellent or good credit. A prime example is buy now pay later no credit check instant approval cards.

Remember that applying for new credit is a hard inquiry on your credit report, and this inquiry can negatively affect your score for a short time. It is therefore important to check your credit score and identify the best promotional credit cards before applying for one. Rrequest a free credit report and check if you’re eligible for a certain card.

0% APR credit cards can be beneficial for individuals looking to make large purchases. When choosing a 0% APR card, make sure to select one with a o% intro APR promotional period of around a year. This will ensure that you can repay the entire balance during the promotional period without any interest charges.

  • 0% APR cards are also good for those who plan to transfer balances from other high-interest credit cards. The benefits of 0% APR cards are that you can pay off your debt faster and pay less interest.

Is There a Balance Transfer Fee?

When searching for a 0% APR credit card, keep in mind that some of these cards have fees associated with balance transfers. The fees can be as high as 5% or $5, and you may have to pay a balance transfer fee. Some cards will waive this transfer fee if you transfer your balance within a specified time period. However, if you miss a payment, this can harm your credit score.

You can find a list of 0% APR credit cards on the issuer’s website. In addition, you can check out the available balance transfer deals by searching the website of the card issuer. However, you should consider carefully before applying for any card that you haven’t reviewed. While 0% APR credit cards can help you pay off large purchases, it’s important to consider whether you can maintain the card after the initial use. If you have enough credit, you might want to keep it after the promo period ends.

Interest Rates on Credit Cards With Zero Balances

The best way to avoid paying interest on your credit cards is to pay off the balance in full every month. This is easier said than done, so there are some steps you can take to minimize interest costs.

First, choose a credit card with low-interest rates. Ideally, you should transfer your balance to it before the interest-free period expires. To do this successfully, you should make sure that the balance transfer fee is lower than the interest savings you will receive.

Secondly, ask your credit card issuer to reduce your rate. If you have a positive payment history, they should match your request.

To get the lowest APR, you should look for a card with a 0% intro APR. Such cards typically offer a 0% interest rate for a specified period. In other words, you can pay no interest for a period of 12 to 20 months.

However, the interest rate will fluctuate based on the benchmark interest rates. A permanent low APR is hard to find, since it depends on several factors.

  • If you have a $1,000 balance on a 9% interest credit card, you will need to pay a total of $910. In other words, you will pay about $810 in interest over 11 months. However, if you choose an interest rate of 18%, the same $100 payment would cost you $1,180. You can find your finance charge yourself to calculate the interest. In addition, you will need to pay back the balance in two years to break even. To be completely fair, you should try to make your minimum payment on time every month and pay off your balance on your card every other month.

Another important aspect to remember about credit cards with zero balance is the introductory rate. After all, you are still paying the interest on the balance, so if you miss a payment, the introductory rate will be gone. Not only will this result in higher interest costs in the future, but you will also lose the benefit of the introductory rate. You should avoid these situations and opt for a zero-balance card that offers low-interest rates.

Closing Unused Accounts Can Hurt Your Credit Score

You may be wondering whether closing unused accounts on credit cards with zero balances will hurt your credit score. You might be surprised to find out that it can. Credit card issuers may decide to close your unused accounts due to inactivity. Fortunately, you can usually transfer your balance to another card, which won’t hurt your credit score. But before closing unused accounts, consider these tips.

Your credit score is determined in large part by the age of your accounts. If you close a ten-year-old account, you’ll reduce its age to four years. Generally, the older the account, the better. The issuers believe that you will behave responsibly in the future if you have a long history. And you’ll want your average account age to be at least seven years.

closing unused credit card accounts can hurt your credit score

If you find that you’re spending too much on your credit card, consider closing the card. Putting it away in a safe place will limit the temptation to spend. Another option is to redeem any rewards you’ve accrued on the card before closing it. This way, you can keep your credit score in check and avoid unnecessary debt. You can also consider closing unused credit cards.

Keep Your Credit Card With Zero Balance Open

It’s important to keep your credit card with zero balance open even if you’re not using it. If you close the account, you’ll reduce the average age of your accounts, which will hurt your credit score. Additionally, closing an account can increase your credit utilization ratio, which is the percentage of available credit you’re using. A high credit utilization ratio is also a red flag for lenders and can lead to higher interest rates.

The best way to keep your unused credit cards active is to use them for small sporadic purchases and pay off the balance in full each month. This will help you avoid late fees and keep your account in good standing. The lender also won’t close the account for inactivity either.

Additionally, you should keep an eye on your credit report to make sure all of your accounts are reported accurately.

Are Balance Transfer Credit Cards Worth It?

They can be, but it depends on your balance and if you will be able to pay off the balance within the 0% APR period. If you have a high balance, you may want to consider a balance transfer credit card. These cards offer 0% APR for a set period of time, usually 12-21 months. This can give you breathing room to pay down your debt without accruing interest.

Should I Use Department Store Cards for Purchases?

You can use department store credit cards for purchases, but you should be aware of the potential risks. Department store cards tend to have high-interest rates and low credit limits. Additionally, many department stores require that you open a new account in order to receive the discount. This can result in multiple inquiries on your credit report, which can temporarily lower your score.

Will a Personal Loan Hurt My Credit Score?

Personal loans can hurt your credit score if you don’t make your payments on time. Late payments will be reported to the credit bureaus and will damage your score. Additionally, personal loans can have high-interest rates, which can make it difficult to pay off the debt. While there are guaranteed loans for unemployed individuals, borrowers face challenges down the road. If you’re considering a personal loan, be sure to shop around for the best rates and terms.


While closing unused accounts on credit cards with zero balances will lower your overall credit line and increase your credit utilization ratio, they can help your score if you make on-time payments and don’t close them often. However, closing unused credit card accounts is not an ideal option unless there’s a good reason. But if your situation is so dire that you must close the accounts, you should at least try to make them as low as possible.

Having a mix of credit types is a good idea for your credit score. Too many accounts of the same type will hurt your score. Keeping accounts with high credit limits and low balances will help your credit score. Try to focus on closing inactive accounts first and then consider closing the ones with high annual fees. You’ll also want to pay off the old card if you have one left.

BG Vance

After starting over financially in mid-life, I decided to share my experience and financial lessons learned with others. I have over two decades worth of professional and personal financial experience helping individuals and families in all stages of life realize their financial dreams. More about me...

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