I think I read somewhere that it hurts your credit to cancel a credit card after paying off your balance. Is that true or am I better off canceling the card?
2007-08-20 16:17:34 · 7 answers · asked by Anonymous in Business & Finance ➔ Credit
One of the factors of a credit score is how long you've had given lines of credit. If you're basically debt free, keep the oldest card you have that doesn't charge an annual fee. You may want to leave any account that doesn't charge a fee open, as they look at total available credit, and amount of that credit used.
2007-08-20 16:25:25 · answer #1 · answered by open4one 7 · 2⤊ 0⤋
Do not cancel it but consider lowering your available credit limit. Canceling the card will lower your FICO score but lowering your overall credit limit will make you look more desirable to lenders. Probally something less than 2000 is a good idea. Lenders are put off by people with a 10,000 available credit line at a zero balance.
2007-08-20 23:23:17 · answer #2 · answered by Lily 7 · 1⤊ 2⤋
Some people are advising you to cut up the card, I wouldn't advise that. Almost every card issuer have clauses that allow them to cancel your account for non-use. To avoid that every 5 or 6 months make a small charge and pay it off immediately.
2007-08-21 09:28:51 · answer #3 · answered by Craig T 6 · 0⤊ 0⤋
Ironically, you are better off to leave it open with a zero balance than to close it right away. It shows credit responsibility when you have the open credit available and are not using it.
2007-08-20 23:22:51 · answer #4 · answered by PLzHeLPMe 3 · 2⤊ 0⤋
You should keep it open if you want to help your credit. The more accounts you have the better. But it would actually be even better if you had a small balance on the card. I would use it to buy gas or something each month. keep at least $100 on it at all times and it will actually raise your credit score.
2007-08-20 23:24:53 · answer #5 · answered by GEE-GEE 5 · 1⤊ 2⤋
I heard that also. Check to see if they are going to charge your fees randomly over time. Watch the movie Maxed Out and see all the scams the credit card companies pull. I cut mine up.
2007-08-20 23:24:00 · answer #6 · answered by Scarlett 4 · 0⤊ 0⤋
Do not cancel it and don't lower your spending limit on it either. Cut it up and leave it alone. Doing that will keep your available credit to used credit ratio good, and you don't have to worry about the stupid card. For more information, contact your local Primerica Financial office.
2007-08-20 23:25:11 · answer #7 · answered by justbeing84 1 · 1⤊ 2⤋