If i have some cards, like wal-mart and a gap card and I pay them off and cancel them will this affect my credit in a bad way for me canceling them?
2006-11-13 03:11:18 · 9 answers · asked by cutiepatootie179 1 in Business & Finance ➔ Credit
Yes, it can hurt. You need a certain number of credit lines open to continue building strong credit. If you have balances on other cards and close the 0 balance cards, it affects your overall utilization ratio.
Also, your HISTORY is important..its much better to have a card open 5 years than to open one, use it for a year, close it, and then a year later open a different one.
As long as there are not annual fees, its better to cut the card and leave it open.
2006-11-13 04:31:04 · answer #1 · answered by Anonymous · 0⤊ 1⤋
Canceled or closed accounts do stay in your record for a while (sorry I don't know exactly how long).
The only advice I have received regarding this was to keep accounts open even if I don't use them. The reasoning behind this was that the more unused credit you have the more borrowing power. Although on the other hand I also know that having too many credit cards is negative for your overall credit score.
The best advice I can give you is to continue to pay your balances in full and on time. Try not to have a credit card for every store there is, keep it simple. Don't let companies check your credit continuously, every inquiry lowers your credit score and stays on record for (I think) 5 years. Last but not least, check your credit report at least twice a year (to correct any errors quickly).
2006-11-13 11:25:41 · answer #2 · answered by crazy_monkey_jr010 5 · 0⤊ 0⤋
I am a loan officer and yes, it does hurt your score. When I pull somebody's credit and see an account closed, that is credit that was taken away from them. I like to see other companies have faith in you & want to give you credit. If you dont want the cards anymore, just pay them off and cut them up and forget that you've ever had them. Let them stay on your report. The more credit you have available to you, the better it looks.
2006-11-13 12:37:59 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It is much better for your credit rating to pay them off, but keep them open. It proves that you have control over your spending habits which will look very good for you later if you want to buy a house. It shows that you are credit worthy.
2006-11-13 11:41:16 · answer #4 · answered by kelly h 3 · 0⤊ 0⤋
Your credit rating does not get affected at all by card cancellations. Your credit rating is actually your record of overall payment patterns - whether you are a good paymaster or you have a tendency to default in payments with financial institutions / bank in a certain country. If you have been making prompt payments, then there's nothing to worry about. :)
2006-11-13 11:25:14 · answer #5 · answered by jes_evelyn 2 · 0⤊ 1⤋
No, it should not. As long as you pay them off and pay them off on time, it won't affect your credit rating. But applying for too many cards in a short amount of time will affect it.
2006-11-13 11:18:58 · answer #6 · answered by aerobee82 2 · 0⤊ 1⤋
It DOES effect your score. They calculate credit by debt to ratio. The more available credit you have the better your chances of a better score.
2006-11-13 11:35:39 · answer #7 · answered by rollindem20z 3 · 0⤊ 1⤋
no, if you pay them, good luck and good for you
2006-11-13 11:20:08 · answer #8 · answered by Flowers 7 · 0⤊ 1⤋
no -- not if you have been paying as agreed!
2006-11-13 11:14:19 · answer #9 · answered by golferwhoworks 7 · 0⤊ 1⤋