Should I cancel my unused credit card?

Question

So I currently have three credit cards:
-- American Express, limit of $12,100, a $2000 balance and I've had this credit card for 7 years
-- Bank of America, limit of $4000, a $0 balance, I've had this credit card for a 1 year and 8 months
-- Discover Card, limit of $6200, a $0 balance-- this is the credit card I want to cancel...should I? I've had it for 1 year and 3 months

My average credit score is 756...do you think cancelling my discover card will ruin my score?

Answer 1

No don't cancel the cards, it helps the score if you look like you can control yourself.

Answer 2

As long as a card is "open" you have the ability to use/run up that amount on the credit line. Because of this, as long as it is open, it affects the amount that say, a bank would loan on a mortgage. So, it essentially has used up that amount of credit line that you have-even thought you haven't got a balance. Following that logic, closing it should open you up for a better score. On the other hand...having open credit cards that you don't use, don't really help you. They are looking for a good payment history --on time etc. If you don't ever use them, you don't really have anything except for "on hold" credit. If you are looking to improve your score, you might try paying all your bills on the card and then EVERY MONTH, pay off the balances. Only do this if you trust yourself to actually pay them off every month! If not, you could get yourself into real trouble. If you do that for a year, your score should rise. Also, having a steady job really helps. When someone pulls your CBI they look at time on the job, and it factors into your FICO score. Hope this helps.

Answer 3

The reason you have a 756 score is because of these cards. DO NOT CANCEL.

You should only use about 20% of the total credit line each month. Pay in full each month. This shows that you can control your credit.

Answer 4

You applied for a loan recently and now they informed you that your application got denied! Of course, you want to know why. Well, the answer may be in a three digit number known as the credit score. The higher the number the more favorable creditors view you. Or, in other words, the lower the number the more difficult it will be for you to qualify for loans, credit cards, or any other credit you may need. And even if you qualify, the interest rate they charge you will be higher with a lower credit score. If you do get denied, or the interest rate they charge you is much higher than you anticipated, you should check to see if your credit report is the source of the problem.

In essence, your credit score reflects the data in your credit report. And the Fair Credit Reporting Act dictates that any organization that turns down your application for credit, employment or insurance, has to provide you with your credit report as long as you request it within 60 days of being notified of the rejection.

There are three nationwide consumer reporting companies (Equifax, Experian and TransUnion) that compile credit reports. You can purchase a copy of your credit report from any of these three agencies, or from other companies that offer credit reports as part of a larger package. You should not pay more than $15 for your report. Read more from: http://www.credit-card-gallery.com/article/139,Why_Is_Your_Credit_Score_So_Important

Answer 5

Canceling cards you don't use will actually LOWER your score. What I would do it just use the ones with $0 balance to buy a tank of gas once a month just to keep them active. Then pay the balance off every month so you don't pay any interest.

Credit reporting agencies are beasts. BEASTS!!!

Answer 6

Cancelling a credit card which you have never used will not ruin your credit score . The proper number of active cards depends on the holder. My Mastercard serves me well for all purchases, groceries, drug store, gasoline , department stores and even for a significant down payment on a car and the purchase of a fine diamond ring( not at the same time.)

Answer 7

Canceling will lower your score. If you can control spending and not be charging beyond what you can pay in comfort, don't cancel. Just because you have the cards doesn't mean you have to use them.

Answer 8

cancel all of them and dont obsess with the I love debt score. the only people that obsess with the I love debt score are the ones that plan on borrowing lots of money and paying lots of interest.
And that's just what it is. An I love debt score. You have to borrow lots of money and make payments on time to get a high score. You have to keep borrowing lots of money and keep making payments on time to keep a high score.

Pay as you go and live on less than you make and you will have money.

Debt free is the way to be!

Answer 9

No it will improve it. Too many open revolving accounts is seen as a bad thing. Ideally you want three cards.... usually a gas card, one regular revolving acct. credit card, and a department store card. Try to use each one each month and pay the balance off in full each month. Sounds like you're doing all right though!