 Any ideas on what type of credit card is good for bad credit? |
| I was stupid when I was younger now I'm looking to open a new card to re establish my ... |
|
 How can I get a loan at 18 with no credit? |
| I am an 18 years old college student. I work full time and go to school full time as well. I cannot afford to buy a car outright. But I can afford a decent car payment. How can I get a decent loan ... |
|
 I lended $ 20000 to my friend. I have the loan proof.? |
| My friend have left Australia permanently and have gone to China. Can i recover the amount from him through australian courts?... |
|
 Can a payday advance company send me to collections if I don't pay back? |
| A co-worker borrowed money from a check 'n go, but has no money to pay it back. She put a stop payment on the check, and has refused to answer their calls. Can they send her to collections or ... |
|
 Where do you go to get a home equity line of credit for a mobile home? |
| I inherited the mobile home and have lived in it for less than a year and I'd like to get the loan for home repairs and a new/used car. But I'm not sure where to go or how to go about ... |
|
 Should I get a credit card? |
I am a full adult, just have never been very credit savy.
I have been the last couple of years building up my score due to paid off loans etc.
I would like to get a credit card so I can go ... |
|
 Can anyone tell me!? |
Why in this day an age, of payments and receipts being instant, that a Chq Still can take 6 days to clear?
i know checks have to be done but 6 days, surly this is just a ruse by banks to rip us ... |
|
 Wedding loan? |
| Is it possible to take out a personal loan to help pay for your wedding? I'd rather not have to pay on my Credit Cards. I was considering a personal loan of $1000, over a two-year period.... |
|
 Choosing a credit card? |
| what is good credit card? I got citi vc capital one decission to make. Both say 0$ anuall fee and both are promissing great rewards. Too good to be true. Where are the tricks? Obviesly credit cards ... |
|
 How do I build credit? |
| I'm 23 and I don't have credit (I think). I have debit/atm cards, but I don't think those count. My family always advised me to stay away from credit cards like the plague because of ... |
|
 Does enrolling in a hardship program for my credit card effect my credit report? |
| hi I have a credit card that had a promo intrest and now it has expired the payment has almost doubled and its getting harder for me to pay it they are offering a hardship program that will pay it ... |
|
|  |
Sarah G | Credit score question? |
I just paid off the balance on my credit card. I just want to know how it will affect my credit score if I go ahead and cancel my credit card account. Some people have told me it's better to keep the account open. I would prefer to just cancel my credit card, but I won't do it if it is going to hurt my credit. Any advice would be appreciated.
Additional Details
My credit score is 742 right now. |
 |
 
SPIFIMAN1
|
It depends on several things, how long you have had the card, what kind of payment history you have, do you have other cards that you have had longer and have balances on?
All of these come into play when your talking about canceling a credit card.
I always recommend keeping them and use them every couple of months or so even if it's just for a tank of gas or lunch and then pay them off in full before the due dates. |
|
sunshine
|
Keep your card open and don't use it unless you have to then pay it off in full.. if you close your card it can lower your score.. When you apply for credit or loans, lenders what to see how financially responsible you are with you bills.. |
|
J P
|
Keeping some open lines of credit can be helpful. Having some sort of credit history for the last couple of years is helpful.
Cancel the card if you have others available or you have a decent history with the card and you want to limit your ability to keep spending on it (like you're saving for something and think you might spend the money if you have the card instead of saving it.)
If you've only had the card for less than a year and you don't have any other forms of credit that will help establish your credit rating, then keep the card for at least a years worth of good payment history, even if you don't spend money with it.
It's not good to have too much open credit but having a little bit won't hurt. Consider keeping credit available to 15% of your income. For example, if you make $20000 per year, keep credit lines that have a total available credit of no more than $3000. That way you can still show a credit history (and people willing to extend you credit) but you'll never be able to really get too much credit debt that will impact your credit negatively. |
|
latebreakfast
|
If this is the oldest card you have then keep it open.
If it has a high trade line, keep it.
Reasons:
Paying it off will boost the score.
Keeping it will help in two ways.
1. It gives you credit history! That's 30% of your score.
Plus the payment history is 35%
2. Credit to debt ratio will be better. The more you have in available credit, the less impact it has on your d to c ratio.
d to c explained.
say you have 3 credit cards
limit on one is 500.00
limit on another is 1000.00
limit on the third is 5000.00
Now say you charged 600.00 on the second card.
Your credit to debt ratio is 9%
1000.+6000+500=6500 500debt/6500credit limit=.09
Excellent if you want a loan or a good interest rate.
Staying under 19% is best according to myfico.com
say you close the 5000 card.
d to c is now 40% bad for the score if you're needing a loan or mortage.
600debt/1500credit limits=.40
Here's a site that explains your predicament more clearly.
http://www.debtsteps.com/credit-to-debt-ratio.html |
|
CE
|
The problem with this question is that very few people outside of credit reporting agencies actually know how the scores are calculated. Credit scoring is extremely complicated. And, what increases your score with Experian may actually decrease it with Equifax, and vice versa.
In my opinion, if this card comes with monthly/yearly membership fees - just close the account. In any event, if you have other credit cards, with your score, closing this one shouldn't cause any problems. On the other hand, if this is your only credit card (and there are no associated fees), keep the account open, and use it about once a year, for a major purchase. Do not pay it off at the end of the month. Make monthly payments, over the minimum if possible, but leave a balance on the card for a couple of months, then pay it off.
It takes more than an open account to help your score, it takes an account that you actively use. Having an open account that you don't use could also negatively impact your score. |
|
David B
|
Keep the account open!
The best things to increase your credit scores are:
1) mortgage paid on time
2) car/student/installment loans paid on time
3) 2 or 3 Open and $0-$25 balance credit cards
You want good things on your credit pulling your score up! Even if you have no delinquencies, having open/empty credit accounts are better for your score than if you close the account.
Having 3 credit cards with $25 balances every month is how I brought my score up 100+ points (in 18 months) after being laid off and subsequent bankruptcy.
Best of luck! |
|
Deluca - Anti Jonas FANS
|
It won't hurt you to cancel it, but I agree with them to keep it open. I have two that I hardly use, except every once in awhile I'll put gas or something on it and then pay off the amount. It's better for your credit to have a lot of credit in good standing.
Congrats on paying off the card! |
|
bcunniff9
 |
Had a similar question click the link below |
|
Jamar B
|
Actually it does hurt your credit score to close an account as a "consumer". But if the creditor closes the account due to inactivity, it wouldn't harm your credit score. If you've paid off the balance on the account, just take the card and either shred it, or put it in a safe spot to where no one will be able to use the card. Depending on the account/creditor, the account will automatically "purge" after 1-3 years of inactivity. Since you just paid off the balance, you're establishing a very good credit history, and to creditors/lender...this makes you a less risky borrower. So just keep the account open and let it close on it's own. |
|
| |
|
| | |
| Questions List |
Answers | Last Post
| | | |
9 | 19 minutes(s) ago
| | | |
9 | 35 minutes(s) ago
| | | |
9 | 44 minutes(s) ago
| | | |
9 | 3 hour(s) ago
| | | |
9 | 5 hour(s) ago
| | | |
9 | 10 hour(s) ago
| | | |
9 | 1 day(s) ago
| | | |
6 | 4 day(s) ago
| | | |
9 | 1 week(s) ago
| | | |
8 | 1 month(s) ago
| |
|
Homepage 
Financial
Forum 
Credit 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
