I have a couple of cards: Capital One, Bank of America, Best Buy Store Card, Best Buy Mastercard, and a Guitar Center Card. Of them all after I pay the balance, I'd like to get rid of my Capital One card (hate it and at 22.80% interest) and the Best Buy MasterCard. All the others I wish to keep. Will this have a huge impact on my credit score ? I've had my capital one card for nearly 2 years now and I've have my Best Buy Master Card for about 3 months and I'm almost done with payments on the Best Buy card.
2007-08-02 08:19:34 · 12 answers · asked by Jamaal E 3 in Business & Finance ➔ Credit
YES, I was just told yesterday by a credit person to NOT cancel my cards, just pay them off and let them sit, you dont want to lose the good credit you had
2007-08-02 08:35:26 · answer #1 · answered by Michelle 3 · 0⤊ 0⤋
Yes. Credit cards are viewed as available and immediate credit. We should live in a one credit card world. Store cards typically cost you more in the long run. MC, VISA, DISC, etc. or major credit cards provide the best value. However, slow to pay or missed payment is going to cost you big time! Either a demand for immediate pay-off or you get socked with a very high interest rate.
2007-08-02 08:28:35 · answer #2 · answered by Anonymous · 0⤊ 0⤋
it will impact your score because your amount of available credit will be reduced. and for the cards you do keep and use, your ratio of debt to credit will be higher because you have less available. just keep the cards and dont use them. the longer your credit history the better. i wouldnt suggest getting any more though, just increasing your credit limit on the ones you have. as long as you pay the balance every month, the interest rate wont affect you anyway.
2007-08-02 08:24:32 · answer #3 · answered by cashmaker81 6 · 0⤊ 0⤋
It'll have an impact, not a huge one, but an impact. Having open credit card accounts (with constantly paid-off balances) is not bad; the paid-off balance each month enhances your score. Having fewer cards won't hurt though.
2007-08-02 08:28:40 · answer #4 · answered by Anonymous · 0⤊ 0⤋
It's true that closing credit card accounts will impact your credit score. However, your score will quickly rebound.
If that Capital One card is your oldest, you may want to keep that one open and just not use it, provided there's no annual fee. Closing the account also removes the credit history.
My personal advicse is to keep the oldest and one other major card. Close the rest. Keeping all those credit cards is just asking for problems.
2007-08-02 08:54:03 · answer #5 · answered by bdancer222 7 · 0⤊ 1⤋
I would not close any of the accounts you have. Your credit reports should reflect at least 3 trade accounts. If you are going to close some then please close the accounts that were last obtained and keep the old ones that you have paid on and gotten a good rating from.
It will temporaily hurt you to cancel an account but you should rebound rather quickly.
2007-08-02 08:47:37 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Don't cancel the cards. Just pay em off and cut em up. Closing accounts does negatively affect your credit.
2007-08-02 08:22:37 · answer #7 · answered by StephanieS 2 · 0⤊ 0⤋
Closing accounts positively affects your credit score. The more cards you have, the more your potential debt. Even if you have a zero balance on a card, it still counts as potential debt in the amount of the card's limit.
2007-08-02 08:24:23 · answer #8 · answered by Suzy 5 · 0⤊ 3⤋
Yes, it will even though it's stupid, it's true. I closed several accounts and it damaged my credit. Just don't use the card.
2007-08-02 08:28:29 · answer #9 · answered by Anonymous · 0⤊ 0⤋
NO.Actually the less credit u have out provides a less higher risk factor for a credit/loan company to evaluate and approve you.Consult with a loan specialist and they'll tell you the same thing,credit score is based on being on time,building over an amount of time,and paying off approved status.
2007-08-02 08:31:52 · answer #10 · answered by Anonymous · 0⤊ 4⤋