I never use the card because the interest rate is to high. It was my first credit card. it haws a zero blance also. I heard that by canceling credit cards it can mess up your credit is this true?Or should i just shred it up and not bother even cancelling?
2006-12-26 15:09:42 · 16 answers · asked by Anonymous in Business & Finance ➔ Credit
Canceling a credit card only has a detrimental effect if they cancel it not you. In order to develop good credit charge only what you can pay off in the month you charge it. Then it doesn't matter what the interest rate is. You only owe interest on the amount you do not pay before the payment is due. What creditors are looking for is that you pay promptly and wisely. In other words you don't charge more than you can pay off. Once you establish good credit a lot of times you will be bombarded with multiple companies offering you credit cards. Having too many cards can look bad on your credit if you have the ability to charge up more than your income would allow you to pay off in a reasonable time.
If you just shred the card the account is out there and there is the possibility that it could be used fraudulently. Some crooks look for account numbers with a zero balance. They know you probably are not looking for a statement because you don't owe anything on the account and they may be able to use the card for several months before you realize what has happened.
2006-12-26 15:59:32 · answer #1 · answered by j.m.glass 4 · 0⤊ 1⤋
Well it looks like most of the answers here are WRONG i guess that's why most Americans have a credit score below 690. Wow and the answer below are still wrong, this is crazy oh will their loss (and maybe yours).
Keep the account open, cut it up but DON'T but don't close the account.
if you don't believe me how about a quote from
Suzy Orman (you know on TV)
"How long you have had a traceable credit history accounts for about 15 percent of your FICO score. That's why I do not recommend ever canceling a credit card that you no longer use. When you cancel a card you wipe out your history. It is smarter to simply stick an unused card in your desk drawer, or if you think you will be tempted to use the card, then simply take a pair of scissors and cut it up. You can't use the card, but your history is not wiped out."
here is the full text
http://www.suzeorman.com/igsbase/igstemplate.cfm?SRC=DB&SRCN=&GnavID=20&SnavID=96
2006-12-26 15:27:38 · answer #2 · answered by hogie0101 4 · 0⤊ 0⤋
Cancelling a credit card WILL NOT mess up your credit. In fact, you will probably get more card offers than you know what to do with. The card companies are dying to give credit to responsible people. And holding onto it can set you up for an identity theft nightmare. Cancel it and don't look back.
2006-12-26 15:14:53 · answer #3 · answered by Dorothy and Toto 5 · 0⤊ 0⤋
Not using a credit card doesn't have any good effect on credit history. Credit history builds when you use your credit card judiciously, and pay your credit card bills on time. Cancelling a credit card has no effect on your credit history if you cancel it. On the other hand if the credit card company cancels. It is going to effect you adversely. So, if you think that the credit card is lying waste or doesn't fit into your scheme of things you simply go ahead and cancel it. The less credit cards you have the better you will be.
For more answers on credit cards visit http://www.card-gallery.com
2006-12-26 16:44:41 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Because it is your first credit card, and has a zero balance, it is your biggest asset on your credit report. It establishes the length of your credit history, and is helping to bring down your debt to income ratio, which is what lenders will look at when you apply for any kind of credit. Your best bet is to work on paying off your highest interest rate card, and consider transfering a balance to a lower interest card if possible. Either way you most definately want to keep this account open, closing it will drop your credit score as it will increase your debt to income ratio.
2006-12-27 15:31:00 · answer #5 · answered by creditknowitall 2 · 0⤊ 0⤋
Dont cancel it, especially if it is your first card. Keeping the card open will build your credit histroy, you can always apply for a new card and not use the old one....Dont believe in poeple who recommended to cancel the card.
2006-12-26 19:35:22 · answer #6 · answered by avatar 2 · 0⤊ 0⤋
I have paid out and cancelled my credit cards, as they go AGAINST you if you want to finance anything. When they do a credit check, you're limit of your credit card appears as debt, even if you don't owe anything. That is because you can go out tomorrow and max it out if you wanted.
I advise to cancel your credit card if you don't need it. Save the money from the yearly fee.
2006-12-26 15:14:36 · answer #7 · answered by revoltix 7 · 0⤊ 0⤋
Not true-But what type of c.c. is it? For higher credit score you need to cancel any department store c.c. and get two major- visa or master card. Only go for under 10% interest, and if it's higher, all you need to do is call them and request a lower a.p.r., and they will usually do it! Good-Luck! P.S. charge only a fraction of your limit, and pay it off at end of every month you use it. This does take some discipline, so know thyself!
2006-12-26 15:16:18 · answer #8 · answered by Lady 2 · 0⤊ 0⤋
As long as you pay it off and have made timely payments canceling the card won't effect your credit !
2006-12-26 15:13:22 · answer #9 · answered by Anonymous · 0⤊ 0⤋
not using you card isnt good for credit either i think cancelling one is ok especially if there is a zero balance on it just dont cancel high balance cards
2006-12-26 15:11:49 · answer #10 · answered by country_musicdj 2 · 0⤊ 0⤋