if i have a credit card and i paid it off and its still open but i don't use it, will it hurt my credit score?

Answer 1

No. It is good to have accounts open. Dont EVER close a credit card account. Your credit score is based on available credit and your debt ratio as well as payment history. If you have 2 cards with zero balances and $5000 available credit on each, your credit score will be good. If your balances go above 50% of your available credit, your score will drop. If you are 30 days late on a payment, the score will drop again. If you pay off your cards, your score will increase but will still be hurt by the 30 days late. Best to get your cards paid off, but leave the accounts open. If you have $10,000 in available credit, but then close the accounts, you now have ZERO available credit, and your score will be significantly lower. Dont ever close your card accounts.

Answer 2

If you're in Australia your credit report shows any form of credit you have applied for.
So if you've applied for a $5000 credit card it will appear on your credit report. Good news is that after 5 years the original application will no longer appear on your credit record. If you are applying for another line of credit you need not even mention it as there is no possible way a company can verify with your bank etc - this is breach of privacy laws. If however the amount is listed on your report and you apply for a new line of credit, the financial institution will assume that you owe the whole balance of the credit card because it's an open form of credit that you could spend at any time. They need to be certain that you can afford to repay their line of credit on top of the existing credit (whether you use it or not)

Answer 3

Like one poster mentioned, the available credit is factored in your scores. It helps with your overall utilization.
If you close the account, you would be lowering your overall utilization - which in turn would lower your scores.

Don't close it. Keep it open and keep it in your safe or in your safe deposit box at your bank.

FICO, and the creditors, like to see at least some action on the cards, so pull it out every 4 to 6 months and make a small charge on it. Then pay the full balance when you receive the statement.

As far as the fraud or ID theft that was mentioned, you can easily keep an eye on your credit cards by going online to the credit card company's secured site and checking your card activity once a month (more or less)

Answer 4

How much available credit do you have on that card? More than $2-3,000 is unnecessary, and will be looked upon unfavorably by potential lenders. Too much credit means you could get yourself into debt. Ask your company to lower the credit line, and then hold onto the card in case of an emergency.

Yes, part of your credit score IS based on how much credit you have available, but it does not RAISE your credit score when you have a lot of available credit - it lowers it. This is a simple fact. I'm amazed that so many people foolishly believe the opposite.

Answer 5

Closing the card would hurt more then leaving it open. The other posters replied with very valuable information therefore I will not go in the same detail. However, there are somethings worth noting:

*Once a month, when you normally would send in your payment, give the card a check to ensure there was no usage (Fraud) or fee's (some cards have yearly fees). Don't forget about it and think since you do not use, you are in the clear.

*Once in a blue moon, take the card to the Gas station and put in some gas. Pay the bill as soon as you get your statement (to keep the interest down).

Answer 6

Since the ratio of credit used and credit available is one of the criteria used to determine your credit score, it should actually improve your score.

10 years ago creditors looked at open lines of credit as potential debt, but not anymore.

Answer 7

Of course NOT, the only thing that can hurt your credit are late payments, or no payments at all when they are due. I've once had a credit card open for years without using it, and it had NO effect what so ever.

Answer 8

No, it will actually increase your credit score. Part of your credit score is based on how much money you have available. The fact that you paid this bill is positive will also bee part of your record.

Answer 9

Depends on you definition of "hurt". It DOES affect your credit.

The limit on the card will show as AVAILABLE CREDIT. So, even though you're not using it, you could. I believe that available credit does get factored in there somehow.

My advice would be to close the account if you do not plan on using it. Not only does this reduce your available credit, but it removes the temptation to use it as well as removes even the possibility of fraud/id theft on that account.

Answer 10

I don't see how that would be possible, though I'm not a credit analyst, or anything like that.

Common sense.