I have an account that I am getting ready to pay off, and found out that it is a revolving credit account.
After paying it off, will it negatively impact my credit rating by closing the account as I have no future need for it?
Thanks!
2007-09-18 00:44:51 · 10 answers · asked by Me 1 in Business & Finance ➔ Credit
No not at all as long as you close it in great standings there wouldn't be a problem. Wish I had good credit lol
2007-09-18 00:48:49 · answer #1 · answered by luvinmykevin 4 · 0⤊ 1⤋
Do not close this account under any circumstances. Pay it off as you have planned, but leave it open. You build up your credit history in this way. Paying it off is good, but keeping it open is better. Creditors look at your history in making a determination on whether or not to loan you money. If, three years from now for example, you want a loan, the creditor will look at your credit history and see excellent credit for this period with this account, and gladly loan you money. If you close this account, and use this same scenario in three years with no history, you are less likely to get the loan. Or else you may get the loan, but it will have a higher interest rate.
2007-09-18 00:55:14 · answer #2 · answered by Marilyn A 4 · 1⤊ 1⤋
If you are trying to build better credit, then depending on how long you had the account it may hurt your credit. Mortgage companies, banks, and other folks that approve loans want to see that you have a history, meaning if you have had the account for a while keep it open. If you have too many accounts and want to start closing some, that is another story. (Having too many accounts can hurt you)
2007-09-18 00:55:47 · answer #3 · answered by Seasidelover23 2 · 0⤊ 0⤋
If you can consolidate your debts and get a fixed rate if possible. If you have large credit card debts it is easy to get in financial trouble I learned the hard way. Late payments, Dr. bills etc...... can damage your credit. You should be able to improve your credit score in time. A budget is the best and there are some great Christian books out to help you and....... I wish you the best.
2007-09-18 00:53:26 · answer #4 · answered by penguin98 1 · 0⤊ 2⤋
Ehhh its really 50/50. My fiance has a jewelry card- and he payed it off so he no longer needs it- we went to cancle it but my Father told us that it actually sometimes looks bad when you cancle cards, wether they are paid off or not. It all depends on how much credit you have built up.
2007-09-18 00:48:51 · answer #5 · answered by ljh8585 1 · 0⤊ 0⤋
if you do not have 3 good tradelines and this is a good one then do not close the account as it will negatively impact your credit by not have the 3 tradelines.
you do not have to use the account
2007-09-18 00:49:30 · answer #6 · answered by Anonymous · 3⤊ 0⤋
If you pay it off it will have a negative rating!. The only way to counter the negativity is to dress as a clown and laugh while you pay it off
2007-09-18 00:51:41 · answer #7 · answered by Anonymous · 1⤊ 3⤋
It shouldn't affect your credit rating as long as you haven't had any problems with it.
2007-09-18 00:48:36 · answer #8 · answered by gilly g 6 · 0⤊ 1⤋
no
2007-09-18 00:47:04 · answer #9 · answered by Chrys 7 · 0⤊ 1⤋
?????
2007-09-18 00:53:08 · answer #10 · answered by happywjc 7 · 0⤊ 3⤋