What hurts your credit more, having several credit cards or cancelling all but one of them?

Question

I went into the frickin Gap and they asked if I wanted a Gap card, which I stupidly assumed was a membership type thing, only to find out after the fact that I had just opened another line of credit...I have perfect payment history and I only have one credit card, would it be better just to keep this line of credit open and not use it, or just cancel it, in terms of how it would affect my credit score?

Answer 1

It isn't the number of cards, it's the debt to credit line ratio that hurts your credit score.

Closing older credit cards can hurt your credit score as closing the account will remove all the history. However, if this is a new account, closing it will not be much of a hit to your score (the credit check they pulled might drop your score slightly) but it should rebound quickly.

I recommend that you close the Gap account. Why have a credit card you don't want and won't use.

Answer 2

To answer your question :
Cancelling most credit cards hurts your credit score more than having several credit cards open with low balances on them.
Each open card adds to the total available credit. And it terms of credit -more is better- it shows a lender the fact that you had been trusted with credit before... In terms of debt - the less, the best -it shows a lender that you had the credit available but you used it wisely.
Plus , if your credit history is not that old -a "healthy mix" of credit be a plus for your credit rating . It seems that your score will increase if you have more than one types of credit- real estate, car loans, installment loans, major bank cards and store cards...

Answer 3

I'd just cancel it if I were you. More credit cards is more potential for problems later. Those problems could definitely hurt your credit. You definitely want to pay your obligations in a timely manner, but other than that, I wouldn't worry too much about your score. Certainly don't keep the Gap card over it.

Answer 4

Just keep it open and leave it with a -0- balance. I have provided you with a website below that is from the Federal Trade Commission that is especially for consumers to explain how the credit scoring systems works. Hope it helps

Answer 5

Since its a new card with no history it wouldn't hurt you to cancel it. If it were a card you held for a long time and you cancelled it, would definitely lower your score.

It is your call.

Answer 6

just cancel it store cards or a big rip off, more interest than a normal credit card and you can only spend it at one store....

ARE YOU CRAZY?

if so keep it if not i think you know what to do.

Answer 7

Don't use it!! Cut up the card and enjoy the junk mail.