I have a Discover card that I got in 2000 with a current limit of $3,600 and a $0 balance that I no longer use. Within the last year, I have gotten a VISA Platinum and a MasterCard with limits totalling $21,000 and balances totalling $2,100. My credit scores are great. I want to get rid of the Discover. Now this Discover card is not the oldest item on my credit report. I have a student loan that is about 6 months older. I have been told and also read that you don't want to get rid of your oldest credit source. Will cancelling this card affect my scores even though I have the student loan on my report?
2007-10-12 07:58:09 · 11 answers · asked by samuelj13 3 in Business & Finance ➔ Credit
Keep your discover card since you had it since year 2000. Part of the way Faire Isacc calculate credit score is also base on the available credit limit (total). So if you close your discover card with that 3,600 limit will hurt your credit score. Do keep it for both of these reasons.
2007-10-12 08:16:04 · answer #1 · answered by Anonymous · 2⤊ 1⤋
If that is your oldest account then you need to keep it open for a while.
The best solution is to Sock Drawer it!. Stick the card in your scok drawer. About every 90 days by a tank of gas, groceries or some other single small purchase. Pay in full on the next statement and then sock drawer the card for 90 more days.
The reason why you want to use the sock drawer method is that if you leave the card inactive too long, the Credit Card company will shut down the account due to inactivity.
Also with low usage and you paying the card in full every time you use it, the credit card company will give you modest limit increases automatically. The higher limits will help your over all utilization ratios which will drive your score up.
2007-10-12 08:18:26 · answer #2 · answered by Ted 2 · 2⤊ 0⤋
Liwen answered part of this question. It is better to keep the account open because it is part of your overall credit available. The student loan is not going to show the same as the credit card, so even though the student loan is on your record as the oldest piece of your credit history, you want to keep the card open and do like the guy who mentioned "sock drawer"ing said. Only use it to keep it active.
2007-10-12 08:56:27 · answer #3 · answered by Anonymous · 2⤊ 0⤋
I recently was talking with one of the credit bureau people, and he advised me that for some reason or other, if you have an account that is very old with 0 activity, you should close the account. I had two accounts like this.
In addition, it looks better if you close the account than if the company closes the account due to inactivity.
However, the best explanation that I found is in the URL below.
2007-10-12 08:39:41 · answer #4 · answered by Steveo 5 · 0⤊ 1⤋
i am not sure if cancelling it will or not but i talked to a guy at the ford dealership and he said that cancelling them or paying them off then cacelling them will hurt you credit he said that the best thing to do is pay them off then either cut them in half and burn them or just put them back would be the best thing to do that way it just sits there and builds your credit up. He said that the best thing to do when you get a credit card either in the mail or you done have activated and your not going to use it is to put it up and not bother it that it WILL build your credit but if you do cancell them or pay them off early then cancel IT WILL HURT YOUR CREDIT! but, that is what i was told so i thought i would share it with you. hope i helped. kristy
2007-10-12 08:08:57 · answer #5 · answered by kristy_thebitch 2 · 2⤊ 0⤋
You have no use for them. If you don't have a shredder that will shred them, cut them in small pieces and I used to throw the pieces away in a couple different trash cans so there was no chance that it would be found and put back together like a puzzle.
2016-05-22 02:37:33 · answer #6 · answered by hang 3 · 0⤊ 0⤋
you should keep it open. If you don't want to use it simple just cut up the card. Closing cards....hurts your credit.
2007-10-12 08:01:22 · answer #7 · answered by Anonymous · 3⤊ 0⤋
cancelling a card with a zero balance regardless of how old it is will make no difference to your credit report
2007-10-12 08:07:03 · answer #8 · answered by specialnana 1 · 0⤊ 3⤋
Just hold onto it and don't cancel. Maybe use it periodically for smaller purchases just to keep it active.
2007-10-12 08:02:29 · answer #9 · answered by Zombie Birdhouse 7 · 3⤊ 0⤋
Old credit is the best credit.
2007-10-12 08:00:51 · answer #10 · answered by Anonymous · 4⤊ 0⤋