I currently have 5 credit cards, after a bankrupcy two years ago in Jan 2005.
Amex is one of them, it has an unlimited line.
Being that part of our score is based on debt to credit limit ratio, would cancelling this card with its unlimited credit line, hurt my score? And if so by how much?
2007-08-12 08:51:35 · 5 answers · asked by Anonymous in Business & Finance ➔ Credit
Closing a credit card won't necessarily hurt your score, but it generally does hurt most folks scores and it will never help.
If it's an AMEX charge card, like a Green, one that you must pay in full each month, those are supposed to get coded as a charge card and won't get figured into your credit card utilization. However, that's not always the case.
If yours is reporting as a credit card, rather than a charge card, I'd give AMEX customer service and politely ask to talk to someone about your card and the way it's being reported to the credit bureaus. But, when you call, appear lost and ask for help.
"Hi, umm, ah, I'm not really sure who to talk to about this. Umm, can you help me."
People have an inherent desire to wanna help. It empowers them. They tend to let down their guard and be more receptive to any request simply because you were nice and you asked.
If it's an AMEX Green, or Gold Rewards, then you're probably getting zinged you with an annual fee. Cards that are costing you money are worth getting rid of. However, AMEX tends to be very generous issuing card holders more cards and they can be very generous with credit line increases.
2007-08-12 18:07:32 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I agree with Britty, it will hurt your scores.
Especially now that you have the bankruptcy reporting and you are rebuilding your credit.
Instead of closing the card you might consider finding a couple Amex cards that report the credit limit. Then call Amex and ask the CSR to convert your current card into one of the others
When I mentioned looking for a "couple" cards but only converting to one, it gives the CSR something to work with.
If you only qualify for one of the cards, the CSR will have the opportunity to offer you the one you qualify for.
2007-08-12 09:49:56 · answer #2 · answered by echo 7 · 0⤊ 0⤋
No it will not hurt your credit score. You have 5 credit cards and don't need that many. Too much credit is bad. If you have a lot of credit cards - whether your owe or have available credit lines - that negatively affects your credit. So if you don't need it, close it.
2007-08-12 09:23:38 · answer #3 · answered by gogo7 4 · 0⤊ 0⤋
Yes! Anytime you cancel a credit card it reflects poorly on your credit score.
2007-08-12 09:17:37 · answer #4 · answered by Britty 3 · 1⤊ 0⤋
Yes.
2015-12-18 05:58:20 · answer #5 · answered by Anonymous · 0⤊ 0⤋