2006-10-21 04:26:23 · 10 answers · asked by ed c 1 in Business & Finance ➔ Credit
NO, and don't cancel them. Put them away use them on a rotational basis( once every six month for minor purchase you can pay in full when the bill arrives. That will keep the acct active. Your FICA is calculated by the credit limit of all cards and outstanding balances.
2006-10-21 16:56:37 · answer #1 · answered by barbara w 2 · 0⤊ 0⤋
If the accounts are closed, or if you NEVER have intention of using them again, by all means cut them up.
But if you still have the credit open, for the sake of your credit score, you should never voluntarily close an account. You see, your credit score is based on a series of murky factors, most of which the reporting companies are doing their best to keep from us. However, the one thing we do know is that the amount of AVAILABLE credit vs. how much you are actually using is a big factor. The more you have available and the less you have used (high limits, low balances) the better off you are.
If these are fairly innocuous cards, I would keep them open. Use them once a year and immediately pay off the balance. That will keep them actively reporting and help your score.
2006-10-21 12:11:42 · answer #2 · answered by ShirlD 2 · 1⤊ 0⤋
Although you might cut up the cards, it might be best NOT to cancel the accounts. Your credit report looks at total amount of credit available vs used, as well as the length of time that you have had accounts.
If you cancel them, you will reduce your amount of available credit on the report and also lose any time history that you have - resulting in a WORSE credit score - believe it or not
2006-10-21 12:16:32 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The truth is before you go cutting up your cards you should go back and review the "terms". Perhaps one of the cards you are not using has better terms than one you are using and you could transfer your balance at a better rate. Credit is a tool. Evaluate the required payment % as well. Also evaluate the number of days before your first bill is due. The is called your "grace" period.
Time is money whether you are saving or spending.
2006-10-21 11:33:22 · answer #4 · answered by Jessica M 4 · 0⤊ 0⤋
Yes and close the accounts with the credit card companies as well
2006-10-21 11:28:34 · answer #5 · answered by OOO! I know! I know! 5 · 0⤊ 0⤋
Speaking as the nation's top credit expert (visit www.LearnAboutCredit.com)
If you want to destroy your credit scores, if you want much HIGHER RATES on auto loans, if you want to potentially destroy your chance for ANY home loan, then by all means cancel your credit cards.
Credit cards are a very important part of credit. How you use them, how you abuse them, how you pay them or don't pay them or pay them late will affect your credit scores by HUNDREDS of points one way or another.
However if you abuse credit, if you cannot control your spending, then credit cards are like crack cocaine to you, and you should keep them open, but dramatically lower your credit limits--which WILL hurt your scores, but not nearly as much as closing the accounts.
2006-10-21 17:03:36 · answer #6 · answered by supercreditguru 3 · 0⤊ 0⤋
Yes, and close the accounts. Unless, this will mean you have no cards at all. If that is the case keep at least one or two and use them rarely, and as soon as you get the bill pay it off. This will help keep your credit scores up, if your scores aren't good it will help you build them back up.
Have a GREAT day!
2006-10-21 11:36:04 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Yes, do destroy them in some manner so they could not be used.
If your card balance is down to Zero, and you are not using them, you should also cancell the cards.
2006-10-21 11:34:39 · answer #8 · answered by Anonymous · 0⤊ 0⤋
cutting up the cards does nothing you must cancel the accounts
2006-10-21 11:33:51 · answer #9 · answered by exchange 3 · 0⤊ 0⤋
Please do and inform the card company.
2006-10-21 11:27:32 · answer #10 · answered by Krishna 4 · 0⤊ 0⤋