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fabrichick
LIF Adult
Member since 5/05 2479 total posts
Name:
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Credit cards w/ no balance - do I cancel them?
I have 2 cards w/ no balance on them...do I cancel them?
I don't want that to affect my credit negatively.
A banker friend said to cancel them but I was wondering if there was anyone who really knew what to do.
Any advice?
TIA
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Posted 6/10/07 9:14 AM  |
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Long Island Weddings
Long Island's Largest Bridal Resource |
MST9106
My life:)
Member since 6/06 9589 total posts
Name:
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Re: Credit cards w/ no balance - do I cancel them?
No, don't cancel them...thats how your credit score is determined...with a ratio of available balance vs. debt. I would use them once a month and then just pay them off the next month...it builds up and looks great on your credit history.
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| Posted 6/10/07 9:17 AM |
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JTK
my 4 boys!
Member since 6/06 7396 total posts
Name:
Kristi
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Re: Credit cards w/ no balance - do I cancel them?
there's two sides to that one.. i agree with the above poster entirely but credit agencies also look at your potential for debt.. and if you have say 2 credit cards with a combined potential debt of 20000... the credit agency may say no because you could go out tomorrow and max out both cards..
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| Posted 6/10/07 9:22 AM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Credit cards w/ no balance - do I cancel them?
Posted by JTK
there's two sides to that one.. i agree with the above poster entirely but credit agencies also look at your potential for debt.. and if you have say 2 credit cards with a combined potential debt of 20000... the credit agency may say no because you could go out tomorrow and max out both cards..
credit agencys dont think you are going to go out tomorrow and max out the cards - if you have shown conrol NOT to use them. Definitely DO NOT cancel them (unless there is an annual fee you are paying.
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| Posted 6/10/07 9:43 AM |
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BabyBoy
is Skylar Elizabeth
Member since 5/05 4189 total posts
Name:
Tom
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Re: Credit cards w/ no balance - do I cancel them?
Posted by Meaghan729
Posted by JTK
there's two sides to that one.. i agree with the above poster entirely but credit agencies also look at your potential for debt.. and if you have say 2 credit cards with a combined potential debt of 20000... the credit agency may say no because you could go out tomorrow and max out both cards..
credit agencys dont think you are going to go out tomorrow and max out the cards - if you have shown conrol NOT to use them. Definitely DO NOT cancel them (unless there is an annual fee you are paying.
there is a the possiblity that they will see the potential debt that you could have. they could anayzle it and see patterns (like above poster says about controlling your cards) and what not but it can both help you and hurt you if you close. if you don't have anything major going on in the next year, house purchase, refi etc.. you are fine if you close it.
Is this day and age, the banks want to give you the money and take more risk and look by little stuff, like this
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| Posted 6/10/07 9:58 AM |
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fabrichick
LIF Adult
Member since 5/05 2479 total posts
Name:
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Re: Credit cards w/ no balance - do I cancel them?
i don't use them at all
they are just sitting in my secret spot
i can just leave them
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| Posted 6/10/07 9:58 AM |
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BabyBoy
is Skylar Elizabeth
Member since 5/05 4189 total posts
Name:
Tom
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Re: Credit cards w/ no balance - do I cancel them?
Posted by fabrichick
i don't use them at all
they are just sitting in my secret spot
i can just leave them
are they a high credit line?
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| Posted 6/10/07 10:04 AM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Credit cards w/ no balance - do I cancel them?
Posted by BabyBoy
Posted by Meaghan729
Posted by JTK
there's two sides to that one.. i agree with the above poster entirely but credit agencies also look at your potential for debt.. and if you have say 2 credit cards with a combined potential debt of 20000... the credit agency may say no because you could go out tomorrow and max out both cards..
credit agencys dont think you are going to go out tomorrow and max out the cards - if you have shown conrol NOT to use them. Definitely DO NOT cancel them (unless there is an annual fee you are paying.
there is a the possiblity that they will see the potential debt that you could have. they could anayzle it and see patterns (like above poster says about controlling your cards) and what not but it can both help you and hurt you if you close. if you don't have anything major going on in the next year, house purchase, refi etc.. you are fine if you close it.
Is this day and age, the banks want to give you the money and take more risk and look by little stuff, like this
I am in banking and look at credit reports every day, and I can tell you that we do NOT base our credit decisions on if someone has no balance on their credit cards! - if you have a good FICO, it shows you have the control not to use them, and therefore it wont count against you.
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| Posted 6/10/07 10:26 AM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Credit cards w/ no balance - do I cancel them?
Suze Orman says to keep old cc's open as it will affect your credit history if you close them.
I have more cc's and more offers and my fico score is a little lower than my dh who has had cc's later than me and less.
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| Posted 6/10/07 11:41 AM |
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fabrichick
LIF Adult
Member since 5/05 2479 total posts
Name:
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Re: Credit cards w/ no balance - do I cancel them?
I think each one has $3K
I remember seeing Suze Orman saying you shouldn't close them down
Thanks for the tips and I'll leave them alone
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| Posted 6/10/07 11:21 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Credit cards w/ no balance - do I cancel them?
don't close them- it shortens your credit history
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| Posted 6/10/07 11:26 PM |
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LAMGAJ28
.
Member since 10/05 6039 total posts
Name:
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Re: Credit cards w/ no balance - do I cancel them?
I'd say cancel them.
My credit score is excellent.
I used to have tons of credit cards that I didn't even use. I close all of them and kept only two that I used but I don't keep a balance on them. I send the payment each month of whatever is due completely.
I'd keep the credit cards that you have had for the longest time.
Don't close them all at once because this will affect your credit score.
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| Posted 6/10/07 11:39 PM |
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MissJones
I need a nap!
Member since 5/05 22132 total posts
Name:
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Re: Credit cards w/ no balance - do I cancel them?
Can you just cut them up if you don't plan on using them? I have a few that I just opened for that 10% discount or some other perk but never use. I truly never even bring them out.
Also, if you do choose to close them, be sure to ask that they a: indicate on the account that the user wanted the account closed and b: get a letter in writing stating that as well.
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| Posted 6/11/07 6:38 AM |
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fabrichick
LIF Adult
Member since 5/05 2479 total posts
Name:
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Re: Credit cards w/ no balance - do I cancel them?
thanks for all the great advice!
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| Posted 6/11/07 7:47 AM |
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SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name:
Lauren
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Re: Credit cards w/ no balance - do I cancel them?
I think when you request to have a card closed, it actually effects your FICO score negatively. I have lots of store CC from the college days that I paid off years ago. I never cancelled them, and I have an excellent credit score.
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| Posted 6/11/07 9:15 AM |
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MrsBlueSash
Love my sailor
Member since 6/05 5793 total posts
Name:
Christian
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Re: Credit cards w/ no balance - do I cancel them?
I'd say cancel if you have a bunch of cards. If you only have a few, keep them. Also, if you just paid them off and might be tempted to use them, better to cancel IMO than rack up a debt.
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| Posted 6/11/07 9:42 AM |
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LuckySV
LIF Adult
Member since 10/05 4675 total posts
Name:
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Re: Credit cards w/ no balance - do I cancel them?
Do you have any other CCs? I would probably close one and leave one open. I closed my oldest CC 2 years ago and it still shows up on my credit report, it just says that it was closed at my request. So, technically, it really doesn't shorten your credit hx. I now only have 2 major CCs and 1 store cc, closing many that I had from years ago and my credit score is over 800.
Personally, I don't think it really matters unless you are worried about your debt/credit ratio.
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| Posted 6/11/07 9:47 AM |
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btrflygrl
me and baby #3!
Member since 5/05 12013 total posts
Name:
Shana
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Re: Credit cards w/ no balance - do I cancel them?
I'd say close out one of them if you have no plans on using them.
It's potential debt, and should someone ever obtain/steal your info......BOOM. Done.
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| Posted 6/11/07 9:56 AM |
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sticklee
LIF Adult
Member since 8/06 2984 total posts
Name:
Stick
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Re: Credit cards w/ no balance - do I cancel them?
Posted by Meaghan729
Posted by BabyBoy
Posted by Meaghan729
Posted by JTK
there's two sides to that one.. i agree with the above poster entirely but credit agencies also look at your potential for debt.. and if you have say 2 credit cards with a combined potential debt of 20000... the credit agency may say no because you could go out tomorrow and max out both cards..
credit agencys dont think you are going to go out tomorrow and max out the cards - if you have shown conrol NOT to use them. Definitely DO NOT cancel them (unless there is an annual fee you are paying.
there is a the possiblity that they will see the potential debt that you could have. they could anayzle it and see patterns (like above poster says about controlling your cards) and what not but it can both help you and hurt you if you close. if you don't have anything major going on in the next year, house purchase, refi etc.. you are fine if you close it.
Is this day and age, the banks want to give you the money and take more risk and look by little stuff, like this
I am in banking and look at credit reports every day, and I can tell you that we do NOT base our credit decisions on if someone has no balance on their credit cards! - if you have a good FICO, it shows you have the control not to use them, and therefore it wont count against you.
ok.. where you do you think a good FICO score comes from?
fabrichick - don't cancel the cards
Message edited 6/11/2007 10:56:15 AM.
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| Posted 6/11/07 10:55 AM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Credit cards w/ no balance - do I cancel them?
Posted by sticklee
Posted by Meaghan729
Posted by BabyBoy
Posted by Meaghan729
Posted by JTK
there's two sides to that one.. i agree with the above poster entirely but credit agencies also look at your potential for debt.. and if you have say 2 credit cards with a combined potential debt of 20000... the credit agency may say no because you could go out tomorrow and max out both cards..
credit agencys dont think you are going to go out tomorrow and max out the cards - if you have shown conrol NOT to use them. Definitely DO NOT cancel them (unless there is an annual fee you are paying.
there is a the possiblity that they will see the potential debt that you could have. they could anayzle it and see patterns (like above poster says about controlling your cards) and what not but it can both help you and hurt you if you close. if you don't have anything major going on in the next year, house purchase, refi etc.. you are fine if you close it.
Is this day and age, the banks want to give you the money and take more risk and look by little stuff, like this
I am in banking and look at credit reports every day, and I can tell you that we do NOT base our credit decisions on if someone has no balance on their credit cards! - if you have a good FICO, it shows you have the control not to use them, and therefore it wont count against you.
ok.. where you do you think a good FICO score comes from?
fabrichick - don't cancel the cards
I was saying NOT to cancel the cards too - that was in response to someone saying that a bank will say "well, you have $0 balance of a $5K card, you may run that balance up and use it", which isnt necesarily true.
your FICO score is comprised of timely payment history, use of credit (mortgages are good, debt from credit fixing places is bad), % of revolving debt available, how long the accounts have been open, if you have any judgments or tax liens against you, any collection accounts.
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| Posted 6/11/07 11:04 AM |
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fabrichick
LIF Adult
Member since 5/05 2479 total posts
Name:
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Re: Credit cards w/ no balance - do I cancel them?
I will leave the accounts open & put the cards in a secret spot that Racheeeee & my nephew, Noah cannot access (although he is into everything these days and the dollar is great for them & we know how much he loves to shop)
I remember Suze Orman saying you should leave them open.
Message edited 6/11/2007 11:15:49 AM.
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| Posted 6/11/07 11:14 AM |
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