I've always heard having to many accounts lowered your score but not closing an acount.. is this true?
2007-06-30 14:48:28 · 8 answers · asked by crr246 1 in Business & Finance ➔ Credit
It's better to get the account to ZERO. As a general rule, don't close a credit card account unless there's is an annual fee. Just don't use it.
2007-07-01 08:44:45 · answer #1 · answered by jdkilp 7 · 1⤊ 0⤋
Some years ago I received a letter from my auto insurance company that said it couldn't offer me the the most economical policy because of my credit rating. At the time I didn't owe anyone anything and found out later that my credit score was low because I had numerous credit cards with high limits on them even though I didn't owe any of them money. Needless to say I canceled my credit cards.
As I understand the numbers of credit checks that people do on you will also affect your credit score. I personally don't see why either one would but guess people smarter than me make this crap up. ...Good luck...
2007-06-30 15:09:30 · answer #2 · answered by Ret68 6 · 0⤊ 1⤋
What hurts your credit score when closing accounts is the reduced credit available against how much you are using. Thus, if you have 3 cards with a combined limit of $20,000.00 and you have $2,000.00 in debt, you are only using 10% of your available credit. Not a bad thing. If you close one of the cards with an $10,000.00 limit, you now have $10,000.00 of available credit and you're using 20% of it. It would have some impact on your credit score.
2007-06-30 15:05:33 · answer #3 · answered by Anonymous · 2⤊ 0⤋
Closing the account will drop your credit score. If the card has no annual fee, leave it open but dont use it. Pay off the balance too. It will help raise your score.
2007-06-30 14:58:45 · answer #4 · answered by Lorelei 3 · 1⤊ 0⤋
Depends.. If it's a sole revolving debt, it's better kept open.
The primary thing is the total available credit. If this is high... ie you have 10 available lines of credit at 5k each, with nothing used (so 50k you could blow), your score is going to show the risk.
Timely payments and account closures (you paid the debt in full) will have a far greater impact on your perceived level of risk than a singl;e account being open or closed.
2007-06-30 14:57:56 · answer #5 · answered by Josh H 2 · 1⤊ 1⤋
closing accounts does negatively impact your credit score. you're better off keeping the cards open, or closing them slowly and spread out.
2007-06-30 14:51:27 · answer #6 · answered by Kaila G 3 · 0⤊ 0⤋
No. the only thing that lowers your credit score is paying off the total amount you owe and never missing a payment.
2007-06-30 14:58:49 · answer #7 · answered by Brian L 1 · 0⤊ 2⤋
just keep your balance to 0 and wait for it to expire.
check here for tips for your C.C
http://everything-credit-cards.blogspot.com/
2007-07-01 09:19:05 · answer #8 · answered by harry B 3 · 0⤊ 0⤋