i have 4 credit cards (too many i know!) - but have managed to pay them all off after a spot of luck. now...i want to cancel 3 of them (keep 1 for emergencies) ....if i do this..will it affect my credit rating? - thank you for any answers.
2007-04-30 06:38:49 · 13 answers · asked by Anonymous in Business & Finance ➔ Credit
If it were me? I would cancel two of the cards. Whichever ones that have the highest fees or lowest limits and keep using the other two for everyday purchases like gas and groceries making sure never to go above 30% of your limit in any given month and pay them off in full every month before the due date.
This will ensure that you have open accounts with good pay history's. And since pay history makes up 35% of your score, this will make your credit score go up.
2007-04-30 06:50:33 · answer #1 · answered by ? 7 · 1⤊ 1⤋
Don't cancel them, arrange to pay to full amount by direct debit when the bill is due(that way you pay no interest).
Rotate the cards use a different one each month.
Also arrange to have them request the money (from your account) within a week of you salary that way you know that there will be sufficient funds to pay the credit card bill.
If you are really smart you will use the current card for all your shopping, in effect getting an interest free loan.
The credit card companies hate it when you do that but there is nothing that they can do about it.
The other advantage is that your credit rating soars, you are using credit but managing it sensibly.
This little trick was taught to me by a bank manager.
2007-05-01 06:55:13 · answer #2 · answered by g_a_n_d_al_f 2 · 0⤊ 0⤋
It will affect your credit rating but probably for a short period of time. Many factors go into calculating your FICO score. Two of those factors are how many accounts you have and how long they have been open. In general, if you have 4 credit card accounts, they're all current and you haven't had any payment problems and you close them, your credit score will take a bit of decline. But if you need to do this to prevent past behavior that got you into trouble, it's still the right thing to do. You can always open more accounts later.
On the flip side, if you have too many accounts relative to your income level, the credit rating agencies (Experian, TransUnion, etc.) view that as a negative as well.
If you want more information, go to a site like freecreditreport.com and read about the elements that affect your credit score.
2007-04-30 06:46:26 · answer #3 · answered by rasvegas 2 · 1⤊ 0⤋
If you close 3 of your cc accounts you will likely HURT your score. One of the factors of you credit score is the length of your history, closing older accounts can hurt this. Also the more available credit you have the smaller any of your debt (balances) seems, it show self control that you have the $$ available but are able to manage all for accounts responsibly.
Keep the accounts open or your score may drop. Use them occasionaly and pay them off immediately so that the cc companies don't drop you.
2007-04-30 08:21:38 · answer #4 · answered by IHaveAQuestion? 3 · 1⤊ 0⤋
Yes, but not necessarily in a good or bad way. Depends on if the cards are major or department store cards. Depends on how long you have had the cards, depends on your limit on the cards.
Good to have 1 or 2 credit cards and at least 1 of them is a major (Visa, etc...)
Good to have had a card for a long time.
Good to have a low balance.
Bad to have too many cards or no cards.
Bad to have not had the cards for that long.
Bad to have too high of a balance or no balance.
Bad to have high amounts of available credit.
2007-04-30 06:43:53 · answer #5 · answered by BriATFU 2 · 1⤊ 0⤋
Hey Kags..I'm serving 2 masters..how is this possible????
If you travel a lot u need a visa ...and a master for emergencies..
tell MBNA( the masters provider) before you travel or they will cut you off automatically..and the phone call will be a pain in the jacksee...if u cancel .. your ratings may take a downward swoop temp. but oh the peace of mind!!!!
2007-05-02 01:47:08 · answer #6 · answered by Anonymous · 0⤊ 0⤋
It won't affect your credit rating in any way. It's a good idea to hang on to one of them, even if you never intend to use it, as an established line of credit is generally seen positively by financial institutions.
2007-04-30 23:42:47 · answer #7 · answered by Flup 5 · 1⤊ 0⤋
Believe it or not, yes.
Best to keep them open, but ifthey wantto hargeyou afee upon renewal, then cancel.
Just leave them be. If you're afraid you';ll use them and run up a debt, cut them in half and keep the halves.
2007-04-30 07:02:27 · answer #8 · answered by TedEx 7 · 1⤊ 0⤋
sounds like you dont need advice.
2007-04-30 06:44:04 · answer #9 · answered by Anonymous · 0⤊ 1⤋
yeah and keep one open and only use it when u really need it
2007-04-30 06:42:31 · answer #10 · answered by shorty21 5 · 2⤊ 2⤋