I've heard that the more credit history you have, the better it will be for huge purchases like a house. But since I just moved in my first apartment (I'm 25, I know I'm a late bloomer), I was thinking of all the extra money I would have just by not having to pay off those cards. Thanks in advance!
2006-10-10 14:54:53 · 7 answers · asked by azcurlygirl 1 in Business & Finance ➔ Credit
Canceling your credit cards will NOT help your credit score. Paying the minimum on or before the due date will. If your credit score is your main concern, place the credit cards in a safe place (and not in your purse) and make the payments until you reach a zero balance. THEN, if you want to use the cards again, do. If not, just let them rest where they are. You don't have to use the cards just because you have an account.
2006-10-10 14:59:32 · answer #1 · answered by Anonymous · 0⤊ 0⤋
In answer to your question, maybe. Whether you cancel the accounts or not, you still have to pay off your debts. If you don't pay them off and the are "charged off", then it hurts your credit big time. Also, too much credit activity like opening accounts, closing accounts and/or credit checks -- all cost points on your credit score. Some are good and some are bad, and it all depends on your credit to income ratio. Contact a credit counselor for a more detailed explanation, and to get some help pre-planning for your future.
2006-10-10 15:00:03 · answer #2 · answered by kc_warpaint 5 · 0⤊ 0⤋
There is absolutely no reason in the world I can think of to have more credit cards than you need. One of the keys to credit scores is to pay your cards on time. If it was me, I would pay off the extra ones and keep one card only. You have to use credit in order to get it. so continue to make regular purchases on things you can afford and pay them off.
2006-10-10 15:06:46 · answer #3 · answered by Anonymous · 0⤊ 0⤋
When you buy a house and apply for a loan, the bank would look at your ability to repay the loan, more credit cards you have, the lesser would be your "ability to repay the loan" in the eyes of the bank. So they would give you lesser amount of loan.
Just before you are ready to apply for the home loan , cancel few of your credit cards or reduce the credit limit on the cards.
2006-10-10 15:03:31 · answer #4 · answered by Best Answer 3 · 0⤊ 0⤋
Cancelling doesn't mean you don't have to pay what you already owe, so you would be better off to pay them off completely and not use them, but don't cancel them. That also helps your debt-income ratio because you have a higher percentage of available credit that you aren't using, and that increases your credit score.
2006-10-10 16:57:37 · answer #5 · answered by Anonymous · 0⤊ 0⤋
No, cancelling them would not help your credit. But paying them off would. Lenders look at how long you have had accounts open and the activity on them.
2006-10-10 15:17:57 · answer #6 · answered by LaLa 78 2 · 0⤊ 0⤋
get your credit report from all three credit bureaus. The best way to improve your credit is by working to improve the items they have marked against you.
2006-10-10 14:59:15 · answer #7 · answered by T 3 · 0⤊ 0⤋