2007-02-18 00:47:49 · 8 answers · asked by galactic129 1 in Business & Finance ➔ Credit
It reflects in your credit report and it is not a very good sign. For instance say that you have 5 credit cards with $1000 credit limit for each. Therefore you are responsible for $5000 of possible debt. But when you close 4 of them, now you are only responsible for $1000 of debt which lowers the level of risk of lending money to you. However it is all depends on your level of income too. The important thing is debt/income ratio which should not be very high
2007-02-20 06:04:46 · answer #1 · answered by Anonymous · 0⤊ 1⤋
Best is advice is keep them current with no late payments. Also, keep your ratios at or below 50 percent. What I mean is if you have a credit limit of $1000, you do not want to carry a balance of more than $500. Credit scores can be slightly hurt by cards that a near a high limit. If you are above 50%, you can either pay it down, or request your bank to increase your credit limit. Just don't run out and spend more.
2007-02-18 01:16:50 · answer #2 · answered by Gary N 2 · 0⤊ 0⤋
Not really, as long as you are paying them on time.
If you keep a zero balance on them, in other words, you pay all of them off when the bill comes, what is showing up on your credit report is that you have the cards, what you limit is on the cards, what your highest balance was or is and if you are paying on time.
If you have a large number of credit cards that all have high balances and you are making minimum payments, it could hurt you if you are trying to get a loan for a mortgage because the mortgage company will wonder if you are going to be able to make the payments.
Your best bet, keep them open and use them but pay them off every month.
2007-02-18 01:00:06 · answer #3 · answered by Faye H 6 · 0⤊ 0⤋
Being someone who does mortgages at a bank, I usually recommend at least 3 revolving lines of credit (credit cards) before applying for a mortgage. Tony is right, assuming you carry balances on them, keep your average daily balance below 50% of the credit limit. In fact, below 30% would help you even more. Good luck.
2007-02-18 01:20:49 · answer #4 · answered by E A 1 · 0⤊ 0⤋
No, as long as two things don't happen... you max them out and keep them maxed, only making the minimums, or you make late payments.
The best way to build your credit score is to keep them at about a 1/3 of the maximum and always make your payments on time.
(So I'm told by several mortgage brokers, whom I asked to help with mine. I got told to quit paying them off every month, and keep a small balance.)
2007-02-18 01:18:55 · answer #5 · answered by Anonymous · 0⤊ 0⤋
properly, maximum lending institutions would be hesitant to furnish somebody credit without source of income, ie a activity. ultimate enjoying cards does impact your score negatively now, yet purely via a small bit. i would not worry approximately it too lots. i would not say you will possibly desire to bypass word for credit enjoying cards without pastime. particularly I advise you reopen your Wells Fargo card in the event that they permit you to, and look at to confirm in the event that they might desire to tug a credit rfile to do it or no longer. in the event that they do it incredibly is seen an inquiry, and can decrease your score temporarily.
2016-10-02 08:16:55 · answer #6 · answered by ? 4 · 0⤊ 0⤋
it will only hurt if you don't pay them on time....if you pay them as agreed you will help your credit score:)
2007-02-18 05:48:43 · answer #7 · answered by Anonymous · 0⤊ 0⤋
No, only if you don't pay them on time.
2007-02-18 00:56:15 · answer #8 · answered by LucySD 7 · 0⤊ 0⤋