I currently have 3 credit cards. I just got approved for another and it is in the mail on it's way. I paid off the one with the lowest credit limit, and was thinking about cancelling it and just keeping the other three.
I have been working on building my credit for a long time, and it has been very difficult. Will cancelling this card hurt my score? Or will having too much available credit hurt it? Which is worse? What should I do to keep working on getting my credit score higher?
2007-04-24 10:13:36 · 5 answers · asked by Des-n-Jes 4 in Business & Finance ➔ Credit
To sum it up, is it worse that I cancel the one card, or is it worse that I may have too many cards? I also have a loan on my car and loan with American General. They are always paid on time.
2007-04-24 10:28:15 · update #1
Since you stated that you are "thinking about canceling the one with the lowest credit limit" I am guessing that this is most likely the one that you have had the longest.
Since a full 35% of your credit score is based on payment history, do not cancel this card. Keep it and make everyday purchases like gas and groceries. Pay it in full before the due date every month and your score will continue to go up.
2007-04-24 10:32:36 · answer #1 · answered by ? 7 · 69⤊ 7⤋
One big downfall is that if you pay late on the transferred balance or any other credit card, they may be able to raise your rate. I found this out the hard way...right back up to the 24% rate. Some rates go over 30% these days. If you proceed with this plan, or even if you don't, you MUST make your payments on time. Between rate increases and the $39 late fees, you can't catch up.
2016-05-17 22:58:25 · answer #2 · answered by maria 3 · 0⤊ 0⤋
The main thing you can do is pay your cards on time. If you have had the card you want to cancel for a long time you should just keep it--one of the things they look at is the amount of time you have had your accounts. Oh, and you should pay off first the one with the highest interest.
2007-04-24 10:19:30 · answer #3 · answered by Nelson_DeVon 7 · 13⤊ 2⤋
DO NOT CLOSE THAT ACCOUNT. This will hurt your score.
Keep it open, charge a few dollars only every month...pay it off in full monthly, rinse and repeat.
DO the same for all your cards to keep your score going up. Good luck.
FYI...ideally you should only have 2 cards, and at least one non revolving loan (car loan etc) for a good credit mix to crank out good scores over time, too many cards can hurt you.
2007-04-24 10:20:28 · answer #4 · answered by lilpuppy6 3 · 15⤊ 6⤋
YEs it will hurt your score. Don't cancel it, just don't use it and leave it open. Pay your bills on time when they are due to keep your score good. Don't be late. If your can't afford to get it in cash you probably don't need it.
2007-04-24 10:20:17 · answer #5 · answered by JR V 1 · 7⤊ 9⤋