2007-03-02 01:13:35 · 9 answers · asked by bogliolim@verizon.net 1 in Business & Finance ➔ Credit
Close all of your credit cards but one. It reflects in your credit report and it is 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.
There are lots of articles here which you can find useful to boost your credit.
http://www.howtoestablishgoodcredit.com/Credit_Articles/index.php
2007-03-02 09:34:16 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Keep them open if you had them for a while. Set up some bill to get paid through those cards monthly or whatnot.
One of the key variables in credit score is average number of months your revolving credit cards have been open If you cancel them, you will hurt your credit score.
2007-03-02 11:29:11 · answer #2 · answered by sirtitan45 4 · 0⤊ 0⤋
You should always keep atleast one credit open and with a balance. why? Because while you pay off that balance over time, you're continuing to establish a good credit rating on your credit report.
If you have lots of open accounts in which you ar enot using the credit lines, then if you go to get ahome loan or a car loan, that will count against you because you have the ability to use those credit lines again and if so, will be a higer risk consumer in the lenders eyes and will probably get a higher interst rate.
Hope it helps.
2007-03-02 09:18:54 · answer #3 · answered by annazzz1966 6 · 1⤊ 0⤋
Not to insult BUT anyone telling you to cancel or close these accounts is dead wrong and giving terrible advice. ( Please do not take offense other posters)
Closing any account will drop your score over night, and each one you close would drop your score more.
Keep all cards under 30% of the balance and you never know when or if you might need those cards. Its great to keep them at a zero balance but it would help your credit even more to charge say $25-30 on one and then pay it off in a month.
but keeping them unused and at zero is still way more helpful to you than closing them on every aspect.
2007-03-02 10:44:23 · answer #4 · answered by bordercenturion 2 · 1⤊ 0⤋
As long as you aren't using them, you shouldn't cancel them. One of the factors used in your credit score is how much unused credit you have. By cancelling them you may lower your credit rating. It will also shorten your credit history, which is another negative. If you think you might be tempted to use them, cut them up, but don't cancel them.
2007-03-02 09:18:56 · answer #5 · answered by BosCFA 5 · 1⤊ 1⤋
No do not cancel them. Just put them away or cut them up. Financial advisors advise you to not close accounts as it causes you to lose points on your credit report.http://www.sptimes.com/2004/03/21/Columns/Closing_credit_card_a.shtml
2007-03-02 09:17:53 · answer #6 · answered by Sparkles 7 · 0⤊ 1⤋
if you have a couple cancel all but one...keep it so you can get good credit rating and in case of emergency.
2007-03-02 09:21:41 · answer #7 · answered by Gloria B 3 · 0⤊ 1⤋
just cancel the cards that you dont use anymore and then cut them up so the plastic #s are not readable and cut up the magnetic strip really good
2007-03-02 10:25:14 · answer #8 · answered by rives 6 · 0⤊ 1⤋
better you cancell all of them before they charge you for subscription.
2007-03-02 09:18:23 · answer #9 · answered by hum k 2 · 0⤊ 2⤋