I have 2 credit cards, I want to close one, will that affect my credit history or score. My bank has just started charging me for that credit card & hence I dont want it, instead I can get a free card from any other bank. But will this affect my credit history?
2007-03-22 08:04:44 · 8 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Rather than closing it, switch the existing balance to a new card which has 0% on balance transfers and interest for a while, then close the old one. So you're not paying interest but still have the same number of cards.
2007-03-25 07:16:14 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You never want to close your card that you've had open the longest--because the biggest part of your credit score has to do with length of credit history. And once you close that card, it can appear on your report as though you never had that credit.
Plus, closing that card will lower your overall credit limit--another factor in calculating your score.
I'd only close it if you have really good credit, have other cards/loans that preexisted the card, AND are planning to open another card immediately so your credit limit stays the same (or goes up). But if the fee is really high, then you'll have to decide what's more important--a higher score or that annual fee.
2007-03-22 17:14:47 · answer #2 · answered by lizzgeorge 4 · 0⤊ 0⤋
Yes, if you had that credit card for a long time, it will impact your credit score. But if you are going to be charged for a card you will not use, go ahead and close it. Another option is to call the credit card comapny and see if they have a different program with no annual fees.
2007-03-22 15:10:02 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Yes it may, depending on the type of credit card you want to cancel/close.
MC, Visa, Amex, Discover, etc. are considered GOOD credit and help your credit score, provided you are making timely payments, at least the minimum, and don't have a really high balance.
However, credit from the local appliance store, best buy, etc. are NOT good credit and do hurt you.
For more information go to http://www.how-is-your-credit.info/
2007-03-22 18:17:52 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Part of your rating/score is determined by the amount of available credit you have. More cards = more available credit. More available credit = higher risk.
So it could have no effect or a positive effect, but will not have a negative effect.
2007-03-22 15:14:05 · answer #5 · answered by Anonymous · 0⤊ 0⤋
As long as they are paid off then it shouldn't affect your credit.
2007-03-22 15:12:13 · answer #6 · answered by darkchild39702 2 · 0⤊ 0⤋
No it should not affect your credit in any way.
2007-03-22 15:09:43 · answer #7 · answered by Anonymous · 0⤊ 0⤋
No, it doesn't affect it. You are paying it off and deciding to close it.
2007-03-26 10:13:23 · answer #8 · answered by Pepper 6 · 0⤊ 0⤋