Credit score/ credit cards?

Question

So recently I canceled three of my credit cards. I really never used them much. I was wondering if I hepled my credit score go up by doing that.

Answer 1

no you actually hurt your credit score. by closing them out you are eliminating your credit worthiness. it is better for a lender to see 500 dollar limit with no balance (saying hey look I always pay) than not seeing no credit worthiness (saying no one will take a chance on me) part of your credit score is how much credit is lent to you and how much of that you actually use. no history of credit is bad and by canceling your cards you are eliminating your history.

Answer 2

Here is why canceling cards can hurt your score, surprisingly. Your credit score, aside from on-time bill payments, is based on two other variables: your income to debt ratio and your debt to credit available ratio. In this case, if you cancel the cards, let's say each card is granting you at least a $5,000 credit limit, you are decreasing your available credit by almost $15,000 while your other debts stay the same. If on that last card you have it maxed out (which you say you don't, but for example), then yeah this would reflect badly. If though you can get rid of the balance on your fourth card, maybe even ask the card company to raise your limit if you're thinking of keeping it and you qualify, then slowly cancel the other 3 cards one at a time, this might put you in better shape. Still, the fact you had nearly 4 credit cards on your record is going to bite you a bit eventually, but credit does heal with time. If you haven't seen your credit report in a while, I would try making sure you have no credit card debt and cancel one of them. Then a month later, check your credit report (you can get a credit report for free once a year). See where it falls. Anything above 650 is considered a great score, so if you're above that, I'd think you'd be fine to get rid of the others too.

Answer 3

It did affect your score. It probably lowered your score since you have less accounts in good standing, you have less available credit now, and your average account age is lowered. The credit score is formulated by many things, so the number of points your score decreased will be determined by many other items of your financial background.

Answer 4

the less credit cards you have the better and yes you did help your credit score

Answer 5

It may or may not...but by cancelling your cards you have definitly benefited yourself.....try it with all of them! Imagine the money you will save without CC payments and interest!

Answer 6

Yes - it lowers your available credit, which lenders look at.