Barkley Hound
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Your credit score is partially based on the ratio of the money you owe to your available credit. If you have less credit that ratio goes up and your credit score goes down.
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ceesvamp
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Yes! It absolutely is a bad idea. I closed several of my credit cards that were paid off, and little did I know that every time I did that, my credit score got dinged. It's better to just cut the card off, and eventually the account will close on it's own, after so many months of inactivity.
You might think that cancelling a card would improve your credit history, but for some reason, it does the opposite. |
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Volusian
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Believe it or not, it probably will…………
“Closing open accounts may actually hurt your FICO score. Lenders take a hard look at the ratio between the balances on your revolving accounts and your total available credit. If you do have debt, try to keep it to less than 30% of your available credit. (The ideal number here is, of course, 0%. Go ahead and keep those lines of credit open (but don't be tempted by untouched lines). When you close open accounts, those credit lines are no longer factored into your ratio. Thus the percentage of debt/available credit will increase. Ouch.†|
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Gerry
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I'm sure if your account is paid in full you'll have no problem.
Why not just cut the card up and don't use it any more? |
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mttjocy
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It depends on your situation, if you feel you can't trust yourself with the card cancelling is better than burrying yourself in debt, if it is simply one you don't wish to use anymore keep the credit line open, when you cancel it your available credit on your credit report drops, while your used credit balance does not thus your debt:credit ratio increases, ideally the best situation to have is where your debt to credit ratio is no more than 25% (but more than 0%, interestingly enough lenders prefer people who carry a moderate balance to those with none).
The reason why a moderate balance is preferred over none (even by the automated scoring system) is lenders make the vast majority of their money through interest not annual fees, borrowers who clear their balance every month are low risk to the lender (good) but there is no profit in it (bad), banks want people with moderate balances with payments always made on time and at the required level this gives them low risk (good) and a profit potential (good) in credit scoring terms. So if you can trust yourself not to use it keep the credit line open, by doing that you give yourself a greater total credit and it is easier to keep a moderate balance which gives you the optimum credit score. |
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Tina T
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If you've had the card for several years and had good credit history with it, then keep it; it shows you are responsible and have established credit. If you don't want to use the card, then either cut it up or put it away and just use it every now and then immediately pay it off. |
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ashley f
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they say that cutting up your cards and leaving the account open with the card company is the best way to go credit-wise. so when places run your credit report your credit:debt ratio is good.
BUT if you want to cancel because you are trying to get your credit under control and you know that you will spend on it... cancel it with the company. they will keep sending you cards if you don't :) |
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Von
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Yes, it is true in a sense because if you cancel than there is no more credit reporting. However, it is not bad or going to make your credit history awful to cancel a card; especially if it is one that carries high interest. It is always best to close out an account rather than run the risk of keeping one you do not want or cannot pay. |
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uhhhhh....no!
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Cancelling is better than maxing out and being in debt |
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Daniel M
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i dunno i pay in cold hard cash |
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drunksurf
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It depends on how long you've had it. If you haven't had it very long, then use it like once every two or three months and keep paying off the balance in full. That well help build you're score. |
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makeloans2
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It won't impact your credit history if you have paid it in full. But, it would be better to leave it on your credit history if you can. This is an indicator to creditors that you have a card you could use, but you have the will power to NOT charge it up. |
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Iris R
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Are you planing to buy a house? Or make any other large purchase the next 3 month? If not don't worry and cancel the card. You have to pay it off at that time. I cancel all card where the interest rate and or the fees are too high. I call them first to see if they lower the rate.
Only before we bought our house did I not change or cancel any cards. |
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me
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It does help your credit history to have credit cards with a little balance on it. If you have dozens of cards, or if you can't be trusted not to spend - then cancel it, better to not have it than to over use it.
Or - just put it in a drawer at home and don't use it, if it isn't in your wallet -the tempation isn't there.
It does help your credit to use a credit card a little and pay off the balance regularly. Don't max it out, but it shows credit responsibility when you have an ability to use credit cards, don't max them out and pay them off regularly.
I AM NOT ADVOCATING THE OVERUSE OF CREDIT CARDS!!!
But...their responsible use does help your credit rating. |
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Jon
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depends how often you do it...
too often and it is bad for your credit. |
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*****
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No, that is false. The only way to advesely affect your credit is late payments, or no payments at all to your monthly bills. |
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get love to humanity
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one should not depend on enjoying credits which in turn create horrible experiences. so be within limits. credit cards are only for most emergency. cut it in to four pcs. and return with the bank issuing it. |
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Naamoku
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Cancel it. It will not affect your credit worthiness or credibility. Cancel the one that you least use. |
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sleepy forrest
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cut up the card, pay it off, then cancel it or transfer the balance to another card then cancel it ,or go see a credit counselor |
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meadowbee
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I haven't heard that canceling them was bad for your credit history.
What is bad would be to keep it and continue spiraling into more debt because of it. |
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keduardop
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got o the bank |
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