will canceling a credit card i have be bad?

Question

i have 2 credit cards, the intro apr is about up. i owe no balance on them, can i cancel them and reapply for new credit cards with no apr for the first year with nothing bad happening? like to my credit or so, i have outstanding credit also.

Answer 1

Apparently it is bad. But having to many accounts open is also bad and so you end up with a balance. What you might want to do is cancel one and see how it affects your credit score, then apply for another one and see how it affects it again. If its good then go for it but I wouldnt recommend it.

Answer 2

Since you have no balance on your cards, why would you want to cancel them, then get another card? The APR will only affect you if you don't pay off the balance every month. As long as you pay it off, you won't pay any interest on your card. Every time you apply for credit, your credit history may be affected, so be aware of that. Just keep the cards you have, and pay off your balances every month (pay them at least a week before they're due, to avoid late charges). Doing that will keep your credit in the outstanding range. <*)))><

Answer 3

This is one of those catch 22's.. There's a such things as having too much credit and having too little. If you have only 2 cards, I'm betting that you're not at the 'too much credit' limit (this is from someone who has about 23 open accounts, credit score 785). The negative of closing the account is you lose the long term credit history associated with the account and this will negatively impact your score. The positive of keeping it open is you can have it as your emergency card.

My philosophy is if, by some horrific chance of nature, my world turns upside down (unexpected medical/auto/etc bills), and I need money, I have the credit available to me ..at this point, I likely will not be worried about trying to maintain my 785 credit score :) ... because I can tell you the creditors will not give you a second look if you start applying when you're down on your luck! So my suggestion is to use one card for your normal expenses, trying to pay it off every month OR at least making more than minimal payment and keeping the second card, BALANCE-FREE, for emergencies only. That's my two-cents!

Answer 4

Cancelling old cards wouldn't necessarily be bad.. but taking out new credit cards will actually lower your credit score fora short time.
If you're not running a monthly balance- the APR doesn't affect you. If there is no annual fee, then just keep them (as the longer you have them the more they help establish your credit rating). If there is an annual fee then there is no excuse- it is really not hard to find cards w/o one.
So, keep them, and pay them off every month so you don't get charged interest. And just keep it up.

Answer 5

If you have no balance. Then NEVER EVER close or cancel your oldest card. This will impact your credit score like you will never believe.

A big driver in your FICO score is the length of credit and it only counts your oldest OPEN account. Another big driver is your utilization on your largest open revolving debt. For example:

Your score is actaully better to have a $15000 credit card with $5000 on it [33% utilization] than to have two $5000 credit cards with $2500 each on them [50% utilization]

A big negative impact is recent requests for credit, even if granted, they show signs that you are seeking.

So DO NOT CANCEL a card if it is your oldest active account.

Answer 6

Like the13thmonk said, canceling cards can have a negative impact on your credit.

You would be losing the positive utilization (and history) that you currently have on the cards if you cancel them.

If you currently have an outstanding balance on other cards, loans etc., it will look as if you are using a higher utilization on the other accounts (other cards, loans, etc.) when you cancel the two cards.

If you are not paying a fee on the cards, keep them open.

They will not only continue to help you with your current utilization, they will also help you with utilization when you receive and make charges on new cards.

Many people mistakenly believe that available credit equals debt - it does not !!!!

Answer 7

I agree with echo and the 13th Monk. From what you described in your question, it appears that you're "rate hopping". Well, cancelling your cards and reappyling for others that have that same rate isn't going to help your cause. Not only closing credit cards hurt your score by limiting the length of credit history, and your utilization (debt vs. credit limit), but you also hurt your score when you apply for other cards and open up new credit.

Answer 8

Yes, closing a credit card account will affect your credit score negatively. I have heard this from several sources including my accountant and my bank when I went to apply for a mortgage.

Good luck!

EDIT - Wow, I am seeing a lot of people saying you should cancel it, so I checked to make sure I wasn't crazy and here is the first hit I came across on Google:

http://www.bankrate.com/brm/news/cc/20061114_cancel_card_credit_scorea.asp

Answer 9

Sure you can cancel it. Especially if you owe nothing on the card. Call the companies and cancel the cards and ask them to forward you a letter of cancellation. Also, note who u talked to that day. Better for you.

Answer 10

No. Cancel all except one. You may need a credit card for an emergency.