Comments on: cancel credit card or keep it open to improve credit score?

By: Warren

Warren — Tue, 29 Dec 2009 19:42:59 +0000

Keep it, especially if there's no annual fee. Doing so will improve your credit score. Using it occaisonally and paying off the balance at month end will do even more for your credit score.
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By: heybulldog

heybulldog — Tue, 29 Dec 2009 19:06:59 +0000

cancel the card If you don’t plan on using it. I would recomend you close all the cards and not play the credit card game.

If you keep a card open and not use it. It will not do a thing for your credit score. You have to borrow money and make payments to get a high score. You have to keep borrowing money and keep making payments to keep a high score.

All you are gonna get is debt.

Pay as you go. Live on less than you make and dont worship at the alter of the almighty fico (I Love Debt) score and you will have money.

Debt free is the way to be!
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By: Jerry BO

Jerry BO — Tue, 29 Dec 2009 18:40:59 +0000

It’s time to check around for the "lowest fixed interest rate."
Including the one card you are holding now.
But if you keep the one you have now. There is them hidden
fee’s for not using it at all. So, if you are going to use it from
time to time. You still can pay it off, at the end of the month.
I read of someone who paid their’s off every month. and
they dropped him. They told him, they wasn’t making any
money off of him in interest.
So. they will get you. Coming & going. <}:-}) & ({-:{>
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By: vulgar1

vulgar1 — Tue, 29 Dec 2009 18:00:59 +0000

You want to keep the credit card acct open. – if you cancel it it makes your score drop

not sure if I can explain this correct but they look at it like this…

say you have 3 credit cards, each one has a credit line of $3000 dollars, well say you have 500 dollars charged on 2.. to credit card companies it looks like you have an available line of $9,000, and you are only using a small percentage of that… (im not good with percentages but say that would be less than 10% percent of your available credit)

if you close one of them then you only have 6,000.00 credit available and where you owe 500 on each – it looks like your using say 30% percent of your available credit..

ok so that is the best way I know to explain it… but it is said most places you credit looks best if you keep unused cards open
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By: Hannah-lou

Hannah-lou — Tue, 29 Dec 2009 17:11:59 +0000

they close after a year if not used anyway
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By: She

She — Tue, 29 Dec 2009 16:21:59 +0000

If you’re going to close it make sure that’s what you want to do because they won’t always let you reopen it. But here’s how it works, although allof us look at the credit cards as "available credit" the credit bureaus look at it as " available debt" they go by your debt to income ratio, so they hold that "available debt" against you and it brings your credit score down. By closing the card it will take 2-3 months for the credit bureaus to update their records, but it will bring your credit score up by closing it. Unless you don’t have anyother credit cards, then you should keep it open & use it from time to time & keep your debt below 50% of whatever credit line they’ve given you, but also carry a balance will build it up too, paying in full every month DOES NOT HELP. Pay at least twice the minimum payment.
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Financial advisor for credit card services

By: happiestgirlintheworld

happiestgirlintheworld — Tue, 29 Dec 2009 15:52:59 +0000

keeping it open and not using it isn't going to do anything to your credit score accept keeping it open leaves you more vulnerable to identity theft. So I would say if you are not going to use it, cancel it.
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By: chinainvestor

chinainvestor — Tue, 29 Dec 2009 15:34:59 +0000

just stop using and cut up the card. It won't improve your credit score if you cancel it but it will hurt it if you cancel it.
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By: Mally Jayne

Mally Jayne — Tue, 29 Dec 2009 14:45:59 +0000

Cancel the card. Believe it or not it could actually end up hurting you by not using it and keeping a zero balance.
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By: southarkansas

southarkansas — Tue, 29 Dec 2009 14:14:59 +0000

you showing an active account with good credit hsitory and 0 balance is the best rate you can get
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