What will hurt your credit score more?

Question

I have a circuit city store credit card i got it to buy a home computer and that's it. Would it be wise to cancel the credit card or to keep it? Which scenario if any would end up hurting your credit score?

have a circuit city store credit card i got it to buy a home computer and that's it. Would it be wise to cancel the credit card or to keep it? Which scenario if any would end up hurting your credit score? Oh, I have paid off the balance, it is currently at 0

Answer 1

Just keep it open, even if you don't use it. It costs you nothing and is an open tradeline.
Closing it could actually hurt your score.

Others will answer

Answer 2

The importance of a good credit score can never be understated. Whether you want a loan with low interest and large amount, a gold or platinum credit card, mortgage at good terms, car loan at cheaper rates or simply have a good financial credibility -- none of it can be achieved without having a good credit score. There is no instant solution to get a good credit score. It builds up gradually based upon how well you manage your loans and financial situation. However, the credit score can degrade at quite a rapid rate if there are consistent defaults on loan and credit card bill repayments. Repairing the credit score is not that difficult provided you take these 5 simple steps into consideration.

Check your credit report regularly

Get rid of those extra credit cards

Repay on time

Keep your debt to balance ratio low

Get all information about credit score at: http://www.squidoo.com/5_critical_factors_affecting_your_credit_score/

Answer 3

credit score is a myth for people who use credit cards in order to get into bad debt, not into good debt.

well, here's how credit cards work:

1. if you want to have excellent credit card score then you shoudn't use more then 65% of your credit and not less than 30%...

that means, you should be always lending money between 30-65% of your credit. If you pay full... it don't make your credit score look better. (I don't know if this made any sense to you, because there are a lot of people who believe if they pay full, they have excellent score... but that's just plain wrong).

Answer 4

store credit cards have rip off apr's but they have nice grace periods (6 months no interest in many cases) keep the card. Only way it will hurt you is if you do not pay it.

Answer 5

Neither will hurt. Just pay if off timely and don't max it out. Maxing out any credit card is not good for your credit card.

Answer 6

cancelling it.. only if you owe still .. If the bill is paid cancel it no problem .. if not you have to pay the entire balance on the card ..if you dont pay they can send it to collections ..and that will hurt especially if you pay the balance down over several months ..your report willl reflect 30, 60,90, 120 and so on dayd past due if you cancel with a balance ..

Answer 7

Pay it off and keep it open that shows you have X amount of credit but no debt on it which increases your credit to debt ration and is good for the FICO points

Answer 8

cancel the card!

Credit cards that aren't a Visa, Amex, MasterCard, Discover, etc., hurt your credit when your credit is looked at by potential lenders.

The credit extended by your local department store or appliance store shows that you are not credit worth enough for the major credit card companies (see above). At least that is what creditors think.

For more information and other credit factors you can go to http://www.how-is-your-credit.info/

Answer 9

you need to keep open at least 1 revoling credit card. It will help your score if you always pay on time. If you have to many credit card then it will hurt your score.

Answer 10

Assuming you on time with your payments I think keeping it would be better. That builds credit. Resist the temptation to buy more unless you can afford it.