2006-07-24 09:28:39 · 9 answers · asked by steph9950 2 in Business & Finance ➔ Credit
I disagree with ht_butterfly27's advice....
When you cancel a credit card you lose that portion of a credit history. A major part of your credit score relates to number if credit lines and the length you have had them.
While I have not been desperate enough to spend money on any of Dave Ramsey's books, I have researched it a lot.
The best place to look is right as the source of who writes the credit score...FICO.
Go to http://www.myfico.com and read their consumer information. It will give lots of advice on what makes up your score, and how you can improve it.
Unlike Mr. Ramsey's advice, they claim that you should have 2-3 credit cards. You don't need to keep using them, just have an active open account. Use it once and a while, and pay it off each month.
If you don't have self control, consider just asking them to lower the credit limits to $200 so you can't get crazy with it.
2006-07-24 10:27:50 · answer #1 · answered by Anonymous · 1⤊ 0⤋
The best way to help your credit rating is to use credit, and pay your bills on time, or ahead of schedule.
If you have lots of credit cards (like more than 5) I would cut up the cards, pay them off, and then close the accounts. Be sure to do that last step, otherwise the account will stay open, and you may be charged a yearly fee for an account you thought was gone.
Then pay off the remaining cards, and close at least a couple of them. You probably don't really need more than 3 cards - one for gas, a general credit card like visa or master charge, and maybe one for a favorite department store. The last would be only if they don't accept the visa or MC card.
2006-07-24 09:47:21 · answer #2 · answered by Ralfcoder 7 · 0⤊ 0⤋
If you tear up your credit cards, be sure to call the company to close the account. I have heard that too many open credit card accounts can hurt your credit ratings, even if you have a $0 balance.
Be sure you are paying off the balance and not just "forgetting" about them. I would keep one, for emergencies, unless you have $1000 or more in the bank.
2006-07-24 09:38:45 · answer #3 · answered by ht_butterfly27 4 · 0⤊ 0⤋
CUT THEM UP LIKE THEY WERE THE BUBONIC PLAGUE! Get a debit card from your bank which works the same way for the most part except all the interest and minimum payments. Your bank card will only let you use it for what you have in the bank to cover it. You can have it pull money from your savings if you overdraft your account. Credit cards are Evil.
2006-07-24 09:35:44 · answer #4 · answered by Gregg J 2 · 1⤊ 0⤋
Pay them off, cut them up - or put them in a drawer, but DO NOT close them - Your score will drop. Let them report Positive Paid Happy credit for you for as long as possible and every 30 days your scores will creep up. This is the way to have 800 fico's. Good Luck!
2006-07-24 13:00:59 · answer #5 · answered by Mortgage Planner 1 · 0⤊ 0⤋
your better off using your cards sparingly and paying them the instant they are due. this shows greater responsibility than just giving up credit entirely.
2006-07-24 09:31:47 · answer #6 · answered by Karen H 3 · 0⤊ 0⤋
Actually it is one of the smartest things that you can do and it will not hurt your credit rating.
2006-07-24 09:32:12 · answer #7 · answered by rickyh606 2 · 0⤊ 0⤋
you can cut them up or just not use them.
this will not hurt you
paying them off and keeping them should help
2006-07-24 09:32:17 · answer #8 · answered by brainiac 4 · 0⤊ 0⤋
After you pay what you have spent, you can stop using one.
2006-07-24 09:31:21 · answer #9 · answered by fedup 3 · 0⤊ 0⤋