It will POSITIVELY impact your credit to have fewer credit cards. Having too many credit cards will NEGATIVELY impact it.
There's no reason to keep a card that you have to pay for, particularly if you have other credit and are not using it.
Regardless of the number of credit cards you have open, if you maintain a balance of more than 1/2 the credit line on the card, it will negatively impact your credit.
2007-12-31 12:43:11
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answer #1
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answered by L.G. 6
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From my understand, it's all based on your credit to debt ratio. I'm not sure what the actual number is, but they like to see you using only a certain percentage of your available credit.
So in theory, if closing the card still keeps you within that realm of good credit-debt ratio, it should have little if any effect on your score. You could always get your limit raised on the other cards to compensate for the $200 in lost credit.
2007-12-31 20:21:45
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answer #2
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answered by Crazyjester9 6
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People will tell you it will reduce your credit score, and that may be true, but it will not decrease it as much as running up huge balances on various cards and most people don't have the willpower not to run up balances.
2007-12-31 14:32:43
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answer #3
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answered by Barcadcadacada 6
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In general, your credit will take a dip from closing an account. This is because your debt to available credit ratio will decrease, which is a key factor in credit scoring. However, since you do not have a long credit history, it is probably in your best interest to go ahead and close the account now. Your score will rebound over 4-6 months, and you'll save the monthly fee.
2007-12-31 13:31:27
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answer #4
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answered by royalserendipity 2
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Yes. Usually it does. It limits your Credit-to-Debt ratio....but on the other hand it is a small amount. I just went though the same thing. The credit card had a $200 limit and since I have $10,000 worth of credit on my other 2 cards I used them more. Long story short, they closed my account because lack of usage. I haven't checked my score yet, but don't think its that big of a deal. If you want to keep it use it every once in awhile though. I'm sorry Jager is wrong. If you don't have ENOUGH credit they will reject you. Its never bad having a lot of credit. The only potential problem with having a bigger credit limit is spending that much. Creditors do not like seeing you spend 40-60% of your balance of your total available credit. You're seen as a risk then because your charging too much and haven't paid it back.
2007-12-31 12:23:22
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answer #5
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answered by Sweet Honey 4
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yes alot
2007-12-31 12:21:00
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answer #6
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answered by Anonymous
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Actually (assuming you've kept this card current, as you mention) cancelling a card usually helps your credit rating and chances of more getting credit..
When you apply for a loan or another credit card the bank, credit union or lender will look at your current available credit.. If its too high they may reject your application. So although its only a $200 credit line it does help.
Also never pay a fee for a credit card.. There are enough cards out there (with all kind of options, rewards and point programs that are free...
2007-12-31 12:20:18
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answer #7
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answered by Jager 3
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