and are you penalised in some way if you cancel? I had 5 and just took on another for the great balance transfer deal. I haven't used 3 of the old cards for ages. If I cancel them would this be held against me in credit scoring terms? On the other hand does having six cards count against you?
2007-10-26 02:27:03 · 7 answers · asked by tina k 3 in Business & Finance ➔ Personal Finance
The answer is it depends.
One of the things that affects your credit score is age of credit history. Having an old account makes your history longer and is a good thing.
One of the things that affects your credit score is balance compared to limits. If cancelling a card brings used credit to above 25% of the limit or 50% of the limit then it can negatively affect your credit.
If you have too much available credit it can hurt too.
But those are the reasons it depends. For many people, it would be beneficial to close out 2 of the older cards.
good luck!
2007-10-26 04:01:00 · answer #1 · answered by Rush is a band 7 · 0⤊ 0⤋
It doesn't count against you. A canceled credit card shows on your credit report as "canceled by customer request". I think keeping them is worse. I ran my credit score last week "961". It said the reason for the 'low' score was that I have so much available credit. (There's the potential of me charging thousands of dollars in one month) Sounds like I should maybe cancel some of my cards.
2007-10-26 02:40:17 · answer #2 · answered by J M 4 · 0⤊ 0⤋
Credit card balance transfer is one of the preferred ways to get rid of credit card debt and is used by many people to get immediate relief. Credit card balance transfer essentially means that we transfer our outstanding balances from a high APR credit card to a credit card which offers low APR's. A 0% Intro APR credit card is the preferred credit card to transfer balances, but because of the widespread misuse of such credit card offers, credit card companies have withdrawn all such offers.
Indeed balance transfer saves a lot of money and can save things from going worse, but many people simply don't know the right way to do balance transfer. This article takes a look at the correct process to initiate and complete the balance transfer.
The first thing to look out, when a person wants to transfer his balances is a credit card which offers the lowest apr rates and lowest balance transfer fees. Many online credit card companies offer credit card comparisons. It is indeed a good practice to search for the credit cards using their services and decide on a credit card which offers the maximum savings. It is important to note here that balance transfer APRs depend on a person's credit history. If the credit card in question offers the lowest rates, it is definitely for those with the best credit ratings. There are different balance transfer apr's for people with lower credit ratings. So, it becomes imperative that one chooses the credit card which offers the lowest apr and balance transfer fees for his credit ratings.
When you decide for a balance transfer it doesn't mean that your obligation for payments towards your outstanding balances with the existing credit card company cease to exist. You will have to pay the credit card company all the monthly payments. One way you can save money is to just send the monthly minimum payments to the existing credit card company. This way you won't default and invite penalty. Read more from: http://www.credit-card-gallery.com/article/414,The_right_way_to_credit_card_balance_transfers
2007-10-29 21:02:40 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Only cancel cards that do not have a balance on them.
It actually helps your credit. It only hurts your credit when you cancel a card that has an outstanding balance.
It helps your credit because it does not look like have so many "open lines of credit."
2007-10-26 04:06:37 · answer #4 · answered by R 2 · 1⤊ 1⤋
Here are two articles I found at The Motley Fool website:
"Before You Cancel Credit Cards..." (2005)
http://tinyurl.com/yodhrn
This article can help you figure out which cards to keep or cancel if you decide to go that route:
"Dump Your Duds" (2004)
http://tinyurl.com/2by9xz
2007-10-26 02:53:11 · answer #5 · answered by Anonymous · 0⤊ 0⤋
As long as you don't have any fees, there's no reason to cancel them as it can be held against you. If they have fees, do cancel them though.
2007-10-26 02:34:41 · answer #6 · answered by Glennroid 5 · 2⤊ 0⤋
I've always heard you should cancel them if you are not using them. I do not think it would hurt your credit at all.
2007-10-26 02:34:28 · answer #7 · answered by clg1975 3 · 0⤊ 1⤋