2007-03-20 05:19:05 · 7 answers · asked by Roger K 1 in Business & Finance ➔ Credit
Was it EVER used or is it just not in use now? Depending on how old it is, what balance you have overall, and how much the card is worth, it could very well likely hurt your credit rating!
30% of your FICO score is based on balance-to-limit ratio, which should be as low as you can go. The ratio is lowered if you pay down (or even off) your balance(s) and/or increase your credit limit. If you had 4 cards with $500 limits and had $500 spread across all four, you'd have a nice 25% balance-to-limit ratio which is low enough to help you get a good score. If you canceled all but one card, your balance-to-limit ratio would be 100% and you'd be maxed out!
15% of your score is based on the length of your credit history... the longer, the better.
If you don't have annual fees and aren't tempted to use the cards for impulse buys, these could do you some major good. You can cut them up if they're too tempting, but DON'T CLOSE THE ACCOUNTS. If you are going in for a loan and a lender is concerned that you have too much available credit, call the credit card companies and ask that your credit limit be reduced, but don't close the cards!
You've already done the damage to your credit score by opening the accounts in the first place... closing the accounts will likely only lower your score.
Best of luck!
2007-03-20 05:29:12 · answer #1 · answered by Anonymous · 3⤊ 0⤋
Only if 1. It is an old account, because the longer you have had a credit card, the better. and 2. If canceling the card will raise your debt to available credit.
2007-03-20 05:26:42 · answer #2 · answered by Blanche 1 · 0⤊ 0⤋
do no longer cancel them, manage to pay to finished volume with the help of direct debit while the invoice is due(that way you pay no pastime). Rotate the enjoying cards use a distinctive one each and each month. additionally manage to have them request the money (out of your account) interior of a week of you income that way you be attentive to that there will be adequate money to pay the mastercard invoice. while you're rather clever you will use the present card for all your finding out to purchase, in result getting an pastime loose very own loan. The mastercard agencies hate it once you are trying this yet there is not any longer something that they might do approximately it. the different income is that your credit status soars, you're utilising credit yet dealing with it sensibly. This little trick replace into taught to me with the help of a economic business enterprise supervisor.
2016-10-19 04:14:06 · answer #3 · answered by ? 4 · 0⤊ 0⤋
It will be affected, yes. Whether its positive or negative depends on a few factors:
You want your overall balance vs limit on all cards to be below 30%. SO if you carry higher balances on the "used" cards and close the "Unused" cards it can lower your score.
You want your average account to be long-term, so if you close "old" cards and keep "new" cards, it can lower your score.
However if these are newer cards and you have too many accoutns anyway, it can up your score to close them.
2007-03-20 06:00:55 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Your score will likely go up. Cancel the newest ones. One portion of your score is the length of your open accounts, so older accounts make the score higher.
2007-03-20 05:22:15 · answer #5 · answered by Heidi 2 · 0⤊ 0⤋
Part of your credit score depends on "available credit;" the more you have, the higher your credit risk.
Cancel the cards.
2007-03-20 05:26:50 · answer #6 · answered by Anonymous · 0⤊ 1⤋
I've heard both that it will have a good effect on your credit rating and that it will have no effect. Either way it won't hurt you, and will help if you get rid of the temptation.
2007-03-20 05:22:35 · answer #7 · answered by Just a friend. 6 · 0⤊ 1⤋