2006-06-22 16:17:17 · 7 answers · asked by Eva Daniel Rn 4 in Business & Finance ➔ Credit
The answers on this page are all over the place. It is true that credit scores are rated by many things. Payment history (35%), total debt and available credit (30%), account age (15%), wild card factors (10%).
This why the previous answers could be right or wrong. Canceling a credit account has no effect on credit history which accounts for 35% of your score. It will effect your available credit but the 30% is based on overall accounts. And as was mentioned, the longevity of the account is factored in to the equation.
No one can truly answer this question in general terms. My advise is this. Trim your accounts to whatever level you feel comfortable with. Closing an account is not going to effect your credit for very long. Also, it is not to be compared with having derogatory information on your credit report.
2006-06-22 20:10:19 · answer #1 · answered by David H 3 · 2⤊ 0⤋
I agree with some of the posters (but, not the ones who say your score will go up)
If your card is relatively new and your utilization on your other accounts is good, you may see a bit of a dip in your scores for a little while.
If the card is an older card, or your other cards have a high utilization, you may see a major dip in your scores.
Unless you are paying fees on the card, it would be best to leave it open and sock drawer it. Pull it out about once every 6 months and use it to by some gas or a candy bar etc. Then pay in full when the statement cuts. And put it back in the drawer for another 6 months.
If you are paying fees on the card, call the company and request that they stop charging the fees, if they refuse then close it.
2006-06-23 02:41:39 · answer #2 · answered by echo 7 · 1⤊ 0⤋
It depends. If you have a bunch of credit cards, and this is one of the newer ones you got recently, then you can probably cancel it without hurting yourself. You also need to be sure your remaining credit isn't close to capacity.
If its a new card with no balances, and your overall credit is not near your credit limit, then it should be fine to cancel it. Otherwise, just cut it up and forget about it, but don't cancel it. Keep it hidden away where you can't get to it.
Your credit score will be affected by having a long history of credit, so that's why your oldest credit card is important. Your score will also be affected by the percentage of your credit limit that you have in debt. This is why you don't want to reduce credit lines unnecessarily if you're carrying a lot of debt. Otherwise, cancelling a card isn't going to hurt you.
2006-06-22 23:21:43 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Your credit score will go up if you close out a credit account that is open and you are not using.
But just because you don't use it anymore and it is past the credit card expiration date, doesn't mean its closed.
You have to call the company and specifically request it be closed.
Then make sure you get a copy of the credit bureau report later to make sure they show the account closed and not just inactive.
2006-06-23 01:47:50 · answer #4 · answered by markmywordz 5 · 0⤊ 0⤋
If it was me, I would leave the card open and not use it. Then your debt to credit limit ratio is better. If you keep only your maxed out cards, then you are your ratio is crappy and your credit score could go down, yes.
Better to have credit that you are not using showing on your record than to only have your debt showing it what I am trying to say.
Peace!
2006-06-22 23:30:57 · answer #5 · answered by carole 7 · 0⤊ 0⤋
Your score will go up some because you show financial responsability by not abusing your credit and closing accounts that you are not using.
2006-06-22 23:22:43 · answer #6 · answered by Michael A 2 · 0⤊ 0⤋
It depends on several factors. Your score is also measured by lenght of open credit. So if it is one of the oldest cards you have then yes it may be affected
2006-06-22 23:22:18 · answer #7 · answered by ML 5 · 0⤊ 0⤋