If I cancel a credit card will it be a negative against my credit?

Question

By cancel, I mean, close the account, Thanks

Answer 1

As long as it was closed in good standing it is not a negative. However, having some available credit on your credit report is usually viewed in a good light. Too much available is bad.

Answer 2

The more credit you have that is not being used the better. In my opinion you should have kept the card open, and not charge anything else on it (unless you have the cash to pay it off at the time that you charge it) I know that this method seems backwards, but if you do not have the cash for it, then you cannot afford it. Credit cards can be an excellent tool if used properly. For example if you have 10,000 in credit over 4 cards, but you only have 1,000 charged, you have a relatively low amount of money borrowed. if you have all 10,000 borrowed, then you obviously do not have enough to pay off 10,000 in debt so why would they want to loan you any more money. I hope that the previous statement did not confuse you any. The amount of unused credit that you have, and your debt to income ratio is important especially if you want more favor when applying for a home loan.

Answer 3

It depends on the reason you are closing the account. If your account is in good standing, it is not a negative thing. If your account has past due issues, then it will not help to improve your score by closing it.

If you have a card you're not using, you may want to keep it to help improve your credit score. Your credit/debt ratio can help to improve your score if the debt is low and your have a lot of available credit.

If you're wanting to get a loan having a lot of available credit can hurt you or help you. It just depends on your income and what you are buying.

For instance, if you have $10,000 in available credit, they are going to look at that as a good thing if your credit/debt ratio is low. But, if your income/debt/ratio is high, it is a bad thing.

You see, the creditor will want to make sure that you can afford to make the minimum requirements of all your credit cards, even if they are not used. What they do is consider your debt if all of your cards were maxed out. If your income is high enough to cover those payments, then having a lot of unused credit will help.

So, you would want to close your extra accounts that you are not using if it raises your income to debt ratio too high.

Hope that makes sense.

Answer 4

Well technically it could because one of the factors in your credit is how much available (unused) credit you have in ratio to the used credit you have. Like if the credit limit on an account is $5000 and you have only charged $20 (or nothing) that would be good. So if you close an account you lose all that unused credit from your ratio. I never worry about it because my ratio is still pretty much zero since i have no credit card debt, and i don't want the identity theft risk. So you have to decide. If you have good credit and no credit problems, then i would close it.
If you have credit score problems, then consider keeping it open (and not charging anything on it).

Answer 5

No, in fact I think your credit rating would be improved with card card with a high limit that you pay off monthly as opposed to many cards that you pay monthly

Answer 6

Close the account.Pay it off earlie and always try to give a little more then what they ask per month.It will be a bonus for you when and if you need to use your credit.

Answer 7

Yes.
You have to carry cash al the time.
There is no negative ( you mean debit)
As you have closed the account no debit or credit since there is no a/c in your name.

Answer 8

Yes. It's better to leave your account open (after it's paid off), but just cut up and don't use the card.

Answer 9

Not if you paid always on time and pay it off now.

Answer 10

No it won't, just make sure it is paid in full.