Is having 2 mastercards and 2 american express cards too many? Is this a good number of cards to have?
Also, I do not like citicard! Does it hurt my credit rating if I cancel my citi account? Or, should I keep it open? Does it hurt if I NEVER use it?
Thanks in advance!
2006-12-05 15:31:07 · 9 answers · asked by CaepeIeden 1 in Business & Finance ➔ Credit
When we purchased our home, we were told that any cards that didn't carry a balance or that is rendered "inactive" (that is it is reactivated when used) should be canceled and reported as "voluntarily closed by customer" -- that helps keep your credit score up. So we are down to 2 cards -- 1 for each of us to keep up with we purchase. Our scores are out the roof now! Canceling actually helps your rating if you are not using them.
2006-12-05 15:37:12 · answer #1 · answered by Jennifer M 1 · 0⤊ 1⤋
Contrary to what Jennifer says if you close the account (even voluntarily) it looks bad. It is listed as a cancellation-does not matter WHO cancelled it and creditors rarely look to see who did for sure. The best way to go is to let it die a "natural" death (expire) by not using it. The number of cards is not as important as the way that they are managed. American Express has extremely high interest rates because they expect the cards to be paid off each billing cycle. Small expenditures can become very large on these type of cards. Interest rates are not set in stone. There is some negotiation that can be done between you and the credit card company and this is more easily done if you have only a small balance or no balance at the time that you are negotiating. You can also use your good credit as leverage in these negotiations. Remember there are numerous different credit card companies out there with different credit rates and programs and if you are getting a new credit card with a good introductory interest rate be sure to find out what it jumps to after the intro rate.
2006-12-05 15:49:27 · answer #2 · answered by CatLady 2 · 2⤊ 0⤋
Actually, you have a good number of cards compared to most US citizens. Take me for example, I had like 12 department store cards, 5 gas cards, and 5 major credit cards. I figured just cover all areas. I ended up closing the majority of them and it actually helped my credit. It all depends on the length the account has been open. Whether or not you have too many credit cards is up to you to decide. If you're not using your citicard, then why keep it open? As far as I know, it may hurt your credit to keep it open if you never use it. This will basically go on your credit report as "open, but not used." Good luck!!
2006-12-05 18:08:19 · answer #3 · answered by Renee W 2 · 0⤊ 0⤋
There is no right or wrong answer to your question.
What matters is how are you using the cards? Are they maxed? Are you making payments? How long have you had them? That is more important than how many.
Also if you close the card it will lower your beacon score. The reason is that you will no longer have Citi saying "oh he's a great guy we lend to him" but after a while your score will go back up since you don't have the credit line in your debt.
Also another think that lenders look at is a score that is based off how likely you are to file for bankruptcy. Leading thing that lowers you number ( the higher the better) is credit cards.....because tomorrow you may go out and max the cards.
2006-12-05 15:40:10 · answer #4 · answered by crazy_in_lov 2 · 0⤊ 0⤋
Credit rating is determined by having a history of using credit responsibly. Maxing out credit cards is bad, but so is not having any cards. Having at least one or two cards establishes your credit history, having more doesn't hurt unless you run them up.
If you have enough credit for your needs, cancelling a credit card doesn't hurt. If the others are close to the limit, it's better to leave the card open.
2006-12-05 16:37:19 · answer #5 · answered by jaywalk57 2 · 0⤊ 0⤋
your credit score depends on a variety of factors including the length of your credit history and your debt to credit limit ratio.
If you want to close a credit card, it is first better to close the one with the least credit limit, then followed by the newest credit card (with less history).
Having said that, if you citi card has no annual fee, do not close it. just don't use it.
But if it has an annual fee, find out what is the credit limit versus the rest of your cards. If it has a small limit and you pay an annual fee, you may want to consider cancelling it. But if the credit limit is large relative to your total credit limit, then that may not be such a good idea until you can increase your credit limit on your other cards.
2006-12-05 15:54:09 · answer #6 · answered by Anonymous · 0⤊ 0⤋
why do you need credit cards at all? any open account hurts your score because of the possible amount you can have out. you can close the account if it is paid off safely. make sure you ask for it in writing. if you insist on having a card for "emergencies" you only need one. I for one have an emergency fund so don't need a card. you can rent cars and do everything with a debit card just as easily.
2006-12-05 15:40:18 · answer #7 · answered by barnett95 3 · 0⤊ 0⤋
In my opinion, 4 credit cards are too many.
2006-12-05 16:58:58 · answer #8 · answered by Sunshine 2 · 0⤊ 0⤋
as long as you keep your payments up to date it does not matter how many cards you have, the problem comes when people use them to their limit, and can not afford the payments. Stuff happens and you should never have More monthly payments than you on low income can afford. as for citi bank it doesn't matter if you keep or close it will not affect your credit
2006-12-05 15:45:36 · answer #9 · answered by rkilburn410 6 · 0⤊ 0⤋