I transferred from a chase credit card with x amount of dollars into a another credit card. Now I owe nothing for chase. Would it be bad for my credit score to close the chase credit card account?
2007-04-13 10:13:45 · 10 answers · asked by Anonymous in Business & Finance ➔ Credit
I'll be more specific cause I don't really understand the answers: Chase credit card #1 1,100 balance transferred to GM card #2. I had chase for 1 year or more and only made 1 late payment, which was not my fault, I sent the payment weeks before it was due through the mail. I have a card #3 with chase, that I opened about 6 months before I transferred, but I have never charged anything to this one. Are the suggestions to just charge to the two chase cards once in a while and pay in full, or to close one of the two chase cards or both?
2007-04-13 14:55:42 · update #1
Actually it will hurt your scores to close the account.
If you close it, you will be losing that credit limit. Which will increase your overall utilization.
For example:
You have a $1000 credit limit with each account - Chase and card #2.
You have a $500 balance on Chase and transfer that amount to card #2 and close Chase - your utilization would go from 25% utilization to 50% utilization.
(amounts are example amounts only)
It would be better if you kept the card open and unused rather than closing it. Take it out every 6 months or so and buy a hamburger or something cheap and pay in full when you receive the statement.
2007-04-13 10:38:31 · answer #1 · answered by echo 7 · 1⤊ 0⤋
WOW. I feel sorry for "ravensgirls" mortgage customers!!
Yes, it can effect your score, in two ways:
1) The average account history is either shortened or lengthened. Say the account you want to close is an old one, and you've opened a new account in order to do the transfer. You lose all that old history and shorten the average by opening a new account. Average account history (length open) makes up 10-20% of your score.
2) Closing an account can effect your utilization ratio. Say you have balances on other cards too. Well you want to be using an average, over all accounts, of less than 30%. So if you have 3 cards that each have mid-level balances but one card with nothing on it, this is a GOOD THING. Closing that 'empty' account ups the overall utilization of the cards.
2007-04-13 11:36:04 · answer #2 · answered by Anonymous · 1⤊ 0⤋
If you have good credit and want an all-around solid card, the Chase Platinum Visa Card is what you need. This card comes with no annual fee. You’ll also enjoy the initial 0% interest rate for up to twelve months on purchases and balance transfers. In addition to these benefits, you can participate in the card’s reward program. You will earn one point for each dollar that you spend on purchases. You can then redeem those points for cash, merchandise, travel options or gift cards. You’ll also have access to additional perks, such as travel accident insurance, car rental insurance, and free online access to your account. Get a best chase card at: http://www.credit-card-gallery.com/Chase.html
2007-04-13 20:41:35 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Most likely it will not.
But if you have had the Chase card for a long time and have a good payment history, I would not close it. Just buy gas or something every month and pay it off in full.
2007-04-13 10:19:35 · answer #4 · answered by ? 7 · 0⤊ 0⤋
Bad credit is one of the worst problems to have... however there exists a solution.
I will hereby talk from my personal experience.
I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,
a good place to start in my humble opinion is a straight to the point ebook with question and answer I found :
http://umgarticles.atspace.com/debt-consolidation.htm
if it helps kindly remember me in your voting!.. cheers!
2007-04-16 02:00:38 · answer #5 · answered by gabriel jones 4 · 0⤊ 0⤋
1) It is wise decision because instead of having two payments, you'll only have one. 2) As far as I know, there is no penalty for transferring balances. But I guess that really depends on the CC company. You might want to check you agreement. 3) I wouldn't think it would have any impact on your score since your debt to income ratio would be the same.
2016-04-01 00:31:09 · answer #6 · answered by April 4 · 0⤊ 0⤋
Well I'm suprised people actually said it would have no affect on credit score. They sure aren't imformed about the logistics of the credit scoring model. At least we have a few people in here who know something about the credit industry.
2007-04-13 16:25:46 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Another fine example of how these "professionals" come on to Yahoo Answers and don't know anything...actually do more damage with their answers then they help!
Amanda and Echo are correct...nothing more to add.
Find out exactly how your credit scores are calculated by visiting http://www.myfico.com. This is the home site of the folks who developed the scoring system, and they have lots of consumer education material on how it's figured and what to do to improve it.
2007-04-13 13:16:37 · answer #8 · answered by Anonymous · 1⤊ 0⤋
no it is better to have LESS open accounts. Having to many cards can actually hurt your credit...It would be " to much lines of credit"
2007-04-13 10:18:56 · answer #9 · answered by Anonymous · 0⤊ 2⤋
no it will not effect your credit at all
2007-04-13 10:17:03 · answer #10 · answered by Anonymous · 0⤊ 2⤋