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I have heard it could scr*w up my credit history?

2007-04-21 14:47:48 · 14 answers · asked by GlowiDark 2 in Business & Finance Credit

14 answers

lots of misinformation here

keep it open

credit length as well as balance/available credit ratio are used to calculate your credit score.

If you have 1000 balance in credit card debt and 10,000 credit limit combined with all your cards thats a 1:10 ratio. If you close your account with one cc company and that drops your available credit to 5,000. Then your ratio has dropped to 1:5. This is seen as more risky as you are closer to maxing out your credit cards and overextending yourself thus it lowers your credit score

2007-04-21 15:03:08 · answer #1 · answered by Ben 3 · 2 0

Your card renews it's self. The financial institution sends a new card just before the old one expires.

It is good to keep it but charge on it once a year, and pay it off right away.

I Had one that I hadn't used in 3 years and the company closed my account.

But usually the more cards you have the more credit worthiness you have. Even if you don't use them.

I am a Personal Banker for a large bank.....

2007-04-21 21:53:03 · answer #2 · answered by Taz 4 · 2 0

so long as you dont have a balance it will do little to your credit history, the only impact will be the length of history, say youve had the card for ten years and all the others are less than 5 years old it will show a shorter history. As a general rule, keep the ones with the most favorable interest rates and no annnual fee.

2007-04-21 21:52:10 · answer #3 · answered by griffyn10941 5 · 0 1

Each credit card is viewed as an open "line of credit" for its maximum amount. While a card or two, with all payments made promptly, won't hurt (or may even help) a credit rating, excess may hurt your chance of making a loan.
If you don't use it at all, and it's not your only widely-accepted card (e.g. Visa), why not drop it? You also save the (maximum $50) liability if the card were to be stolen.

2007-04-21 21:56:57 · answer #4 · answered by Anonymous · 0 1

If there's no annual fee, hold on to it even if you don't use it, if you don't have a lot of other credit cards. You never know when an emergency will come up and you wish you had it. If you do keep it, it would be to your advantage (credit wise) to use it and pay it off each month.

2007-04-21 21:53:05 · answer #5 · answered by Brian G 6 · 1 0

Dont close it, keep it open, charge minimally and payoff at the end of the month.
It helps your credit history.

Especially since there are no lates.

2007-04-22 04:30:11 · answer #6 · answered by narbo73 2 · 0 0

One factor in determining your credit rating is the amount of available credit you have. The more available credit, the higher risk you are, and the lower your rating.

Just close the card, especially since you're not using it.

2007-04-21 21:56:42 · answer #7 · answered by Anonymous · 1 1

Keep it open, you're right.

Use it occasionally, and pay it off at the end of the month. Having old accounts that are current is a great way to up your score!

2007-04-21 21:51:23 · answer #8 · answered by Simply_Renee 6 · 2 0

Buy gas with it a couple times a year and pay it at the end of month.Don't cancel

2007-04-21 21:50:13 · answer #9 · answered by Anonymous · 2 0

if u don't use ur credit card, then i see no reason to renew it. It is true that it might scrw up your credit history as you've nvr used it but then again, it mmight not. but if u nvr use it, why would u renew it?

2007-04-21 21:52:18 · answer #10 · answered by Stuck 3 · 0 2

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