Ok I've decided that I'm going to get a loan from my credit union to pay off my credit cards. The average interest rate on my credit cards is about 21%, and with the loan I'm going to get, the interest (if my dad cosigns for me, which he said he will do) is going to be between 5-7% depending on his credit score. So I'll have all my debt taken care of in one year (my loan will be about $400 a month for one year). The credit union is going to send payment directly to the credit card companies for me, so I won't be handling any of the loan money myself.
Ok, here's my question. I don't want to use my credit cards anymore. I have 4 major credit cards (First Financial Bank, Citibank, Chase, American Express) and a bunch of store cards (Younkers, Victorias Secret, JC Penney, American Eagle, etc). I want to keep the Victorias Secret card, but the rest I don't plan on using anymore. I also want to keep one of my major cards for emergencies and travel, but the rest I don't want. If I cancel all these cards, will that impact my credit score? Or would I be better off just keeping them and putting them somewhere safe where no one will find them? I have no problems not using credit cards- I haven't used any of them in at least 4 months- I always use cash or my debit card/checks for everything now and I only buy what I can afford to pay for right away now, so wanting to get rid of the cards isn't about trying to get rid of temptation, because there is no temptation to use them. I just don't really want them laying around if I don't need them. What would be best for me to do?



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