So I have 3 credit cards: Amex, Chase, and a Visa from BofA. I now only use the Amex and Chase, and no longer use the Visa anymore. It's been almost 3 months and I have 0 balance for that visa. Is that bad for your credit score? Should I cancel it?
2007-06-09 09:49:12 · 8 answers · asked by Anonymous in Business & Finance ➔ Credit
If the BoA card charges you an annual fee, see if you can change the card to one that doesn't charge a fee, or cancel it. Otherwise, keep it open and use it occasionally.
It's generally worse for your credit score to cancel an unused card. You should use the card every 3 months or so to show activity. That way it will count on your score as an active account and will help keep you debt to available credit ratio lower. Also, if you are carrying balances on the other cards, BoA might give you a good BT offer.
2007-06-09 09:57:59 · answer #1 · answered by aj485 5 · 0⤊ 0⤋
YES!!!!!!!!!!!!!!!
I work for a bank. Creditors want to see you use your credit. It shows responsibility, how well you repay, and your ability to repay on time. This is so important. It does not matter how much credit you have. Creditors look at the length of your credit and how well you repay. Please...please do notcancel your card. This also hurts your credit too. I actually do not understand the reasoning behind this but creditors say this hurts you. Remember the old saying...if it is not broken do not fix it.
So my suggestion for this credit card you do not use.....do a small bill pay on it, a reoccurring one..like your cell phone bill. Have this bill automatically paid by your credit card every month. Then at the end of the month pay your credit card bill. This way the card is being used for a necessity, not impulse shopping. This is a easy solution for the card with no use.
Keep up the good work with your credit. Credit is so important and very crucial. Paying cash is great if you can do it. But if you are like me, middle class, you probably can not afford to pay cash for a new car or house. This is where credit, especially good credit comes in hand. The better your credit, the better rate you will get when you decide to purchase that dream house or car.
Use credit cards wisely. You are doing the right thing.
KEEP IT UP!!!!!!!!!!!!!
2007-06-09 10:11:14 · answer #2 · answered by ANJANETTE C 3 · 0⤊ 0⤋
If you've used the card well and don't intend to use it again it would be wise to cancel. Credit worthiness is determined by history and debt to income ratios. If you have 3 cards and a potential of $15000 debt on these cards, that available credit will lower your score. If you actually owe $15000 your score will be impacted even more greatly. If you are maxed out on your credit limits your score suffers BIG TIME. Having had a credit history with a card company and paid well with a zero balance adds to your score. A notation that the account in good standing was canceled by the card holder will add the most to your score.
2007-06-09 10:17:07 · answer #3 · answered by Dogbettor 5 · 0⤊ 0⤋
Why could somebody responsible close their credit enjoying cards, except they fee each year money to run? in basic terms use them on your on a daily basis desires after which pay them many times and at last your credit will circulate to the max. it extremely is likewise my subject, no longer that I care having a score yet you look to care so try this and at last you have a great score, it extremely is that straightforward. RE: $0 stability, open credit enjoying cards..solid or undesirable? I even have 3 credit enjoying cards I even have paid off(by no potential previous due) and are nevertheless open. entire mixed credit decrease with those are over $4000. could desire to I go away those open to tutor i do no longer abuse credit and are not employing it,...
2016-10-08 21:25:09 · answer #4 · answered by ? 4 · 0⤊ 0⤋
Unless your paying a fee, I wouldn't recommend that you cancel. Just use it once every 6 to 12 months for something small and pay in full
Your score won't suffer if you only use the card occasionally
2007-06-09 09:58:01 · answer #5 · answered by echo 7 · 0⤊ 0⤋
Zero balance is good. One of the measures of credit is debt to available credit ratio. Another measure is length of history. By closing the acount you lessen the length of history AND increase your balance to total available credit ratio.
2007-06-09 10:01:29 · answer #6 · answered by goodman_944 1 · 1⤊ 0⤋
It is not bad for your credit score. Since you have two cards, cancel the third one. You don't need it and you might lose it.
2007-06-09 09:52:52 · answer #7 · answered by regerugged 7 · 0⤊ 1⤋
no it is not bad for your credit report i had a card i never used and it shows a good rate on my credit report.
2007-06-13 08:12:50 · answer #8 · answered by confused 1 · 0⤊ 0⤋