i have 5 credits cards , and i am trying to keep only the one with the lowest interest rate . i don' owe nothing ( all of them are in full balance ) . is it safe for me to close some of them ?
2007-04-04 14:51:52 · 4 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Cancelling credit cards can negatively effect your credit score. I know that is just plain stupid but it can. I would, and have, still cancel all credit cards whenever possible. Studies have shown that people that use credit cards spend 16-23% more than when using cash. That's why every other commercial and piece of mail is for credit cards. It's also why they will offer you 1% cash back and 0% interest. They know that you will spend more than those that use cash, and that most will not pay off everything each month. It's a racket.
2007-04-04 15:28:38 · answer #1 · answered by ontopofoldsmokie 6 · 0⤊ 0⤋
yes, as long as you have a good payment record with a credit account, it should not reflect poorly on your credit report. As a matter of fact, open credit affects your credit rating worse than closed credit (with the same payment records) because a lender has no idea if after they give you a loan or credit line, you won't just max out your open accounts and be unable to make your monthly obligations.
2007-04-04 21:56:48 · answer #2 · answered by philcya 2 · 0⤊ 0⤋
Closing accounts is bad for your score since it will lower the amount of available credit you have and will shorten the average account age for the items on your report. Both of those items are factored into your score.
2007-04-05 00:04:46 · answer #3 · answered by Mariposa 7 · 0⤊ 0⤋
Yes, in most cases the less available credit you have, the better your standing. However, talk with a mortgage broker first to be sure.
2007-04-04 21:55:06 · answer #4 · answered by Venita Peyton 6 · 0⤊ 0⤋