to avoid fraud??? if I dont plan on using store credit card? will it hurt my credit score badly? I hope I didnt make a bad decision by closing it.
2007-05-27 16:22:27 · 6 answers · asked by BAGO6 2 in Business & Finance ➔ Credit
5 critical factors affect your credit score in a major way. By knowing these you can keep a check on them and make your credit score a healthy one.
1. Re-payment history
This factor carries the highest weight in your credit report. How steadfast are you in repaying your loans, makes your credit report shine. Experts claim that this factor alone accounts for 35% of points in your credit score. So, if you falter on repayment front it is sure to be reflected poorly on your credit score.
2. Outstanding debt
The next comes your debt burden. How much you owe is a factor that according to experts carries about 30% weight in your credit score. This is
30% is based upon outstanding debt. To get a better score it is advised that you keep your outstanding debt to a minimum.
3. Length of your established credit history
The time for which you have a credit history also matters. The longer your established credit history the more credit reporting agencies believe in you. This could be simply because of the fact that they have more data to analyze your financial position. Experts give it a 15% weight in determining your credit score. Get all informatoin about it at: http://www.credit-card-gallery.com/article/204,5_critical_factors_affecting_your_credit_score
2007-05-27 21:59:00 · answer #1 · answered by grierGRIER h 3 · 0⤊ 0⤋
Have never been in this type of situation but here are some thoughts. A part of your credit score is derived from the length of time you hold a credit card. I actually hold the first credit card I ever received just for this purpose although I no longer use it because most credit card companies give me a kick back for using their card. As far as paying it off, I would think a balance transfer to a lower interest rate card would help pay it off a bit faster. I wish you the best.
2007-05-27 23:35:07 · answer #2 · answered by chicago3200000 3 · 0⤊ 0⤋
Should of left it open, pat of your FICO score is derived from the amount of credit available in comparison to the amount of debt used, along with the length of time you have had credit. Let me explain say you have 2 cards each having 1000 limit. both cards have used 500 in credit. you have a debt ration of 50% You pay one off and close it, you still have a ratio of 50%. but if you pay one off and leave it open you are only using 500 of a possible 2000 so your ration is only 25% which looks excellent in FICO's eyes.. There is no fraud in having a card and not using, wiser would be to regularly make small purchases then pay them off right away.
2007-05-28 12:13:20 · answer #3 · answered by Pengy 7 · 0⤊ 0⤋
I saw on the Susie Ormond show that you should never close an account. Open unused credit cards do affect your credit as well. You can be turned down for say a home loan for having too much revolving credit.
2007-05-27 23:36:53 · answer #4 · answered by boogieboo 3 · 0⤊ 0⤋
Depeding on how many other accounts you have open and how long you've had them, it shouldn't really hurt or benefit your credit score.
However, if it was your only account, then it might hurt your scores a little bit and I suggest reopening it. If it's not your only account, don't worry about it.
2007-05-28 01:26:30 · answer #5 · answered by Anonymous · 0⤊ 0⤋
You did the right thing by closing it.. when you don't need it, why keeping it open.
2007-05-27 23:39:14 · answer #6 · answered by Catherine 2 · 0⤊ 2⤋