Should I cancel my Credit Cards? Please Help!!?

Question

Hello. I have a credit score of 742. I was wondering if I should cancel my credits cards with a $0 balance? I want to keep my 2 (two) oldest accounts because it will show my credit history (such as never late, etc). See I think I have too many credit cards open. I have a total of 7 cards open, BUT I only use two of them (the two that I use are new b/c I transfered my other balances into them-total balance on both cards is $3,000) So should I keep the two cards I have had the longest (4 years) which carry a $0 balance and the 2 cards that have a balance on them? Which would leave me with only 4 open accounts; only two of them carring a balance. Should I cancel the other 3 credit cards which I do not use but carry a $0 balance (they are Walmart, Dell, and Lane Bryant. altogether avaliable credit of over $2,000)

But here is another thing to thing about. I am about to purchase a home here in the next 4 months or so. So I do not want my credit score to go down. Please help!!

Answer 1

Don't cancel multiple credit cards. That can suddenly lower your available credit and can hurt your credit score. Keep old accounts open to ensure a long credit history.

Answer 2

Here is why canceling cards can hurt your score, surprisingly. Your credit score, aside from on-time bill payments, is based on two other variables: your income to debt ratio and your debt to credit available ratio. In this case, if you cancel the cards, let's say each card is granting you at least a $5,000 credit limit, you are decreasing your available credit by almost $15,000 while your other debts stay the same. If on that last card you have it maxed out (which you say you don't, but for example), then yeah this would reflect badly. If though you can get rid of the balance on your fourth card, maybe even ask the card company to raise your limit if you're thinking of keeping it and you qualify, then slowly cancel the other 3 cards one at a time, this might put you in better shape. Still, the fact you had nearly 4 credit cards on your record is going to bite you a bit eventually, but credit does heal with time. If you haven't seen your credit report in a while, I would try making sure you have no credit card debt and cancel one of them. Then a month later, check your credit report (you can get a credit report for free once a year). See where it falls. Anything above 650 is considered a great score, so if you're above that, I'd think you'd be fine to get rid of the others too.

Answer 3

DO NOT CANCLE THEM!!!! YOUR SCORE WILL DROP LIKE A LEAD BALLOON!!!!!

Your credit is based on how much you potentioally owe vs. how much you actually owe. Your score is high BECAUSE you have a 0 balance and they are not being used.

Lock up the cards in a lock box or a security box to prevent identity theft. A month before you apply for a loan, use the cards to make a $10 purchase then pay it off before you are billed for it to show the accounts active.

Buy using the cards on a larger purchase your debt to income ratio will affect the loan, you only want to show that the cards are active.

Answer 4

Do NOT cancel them - simply don't use them. One of the scoring factors in a credit score is the amount of outstanding debt as compared to your total available credit lines. These zero balance accounts help lift that portion of the score, and if you do not use them have no other negative impact.

Answer 5

Don't do anything. You have very good credit as is, if you cancel any of your existing accounts it will lower your score.

When you go to apply for your home loan, the mortgage companies are going to see that you have the ability to manage your debt very well. This along with your great score will ensure that you ge the best rate possible.

Answer 6

No. Leave them open, just never ever use them again. Make sure if any of the cards have an annual fee that you get rid of those only. Stop using all of them when they get paid off. YOu will be surprised what you can accomplish by paying cash and living on a budget.

Answer 7

You have excellent credit. I don't think you credit will be affected if you keep those cards you don't use. As long as you make the payments on time and it does look like you are. It is the same with your home, as long as you make the payments on time.

Answer 8

I say no