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MrsYank
She's here :)
Member since 4/07 3238 total posts
Name:
Mrs. Yank
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Canceling Credit Card = bad for credit?
True or false? If the card has no balance (paid in full)
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Posted 3/4/08 6:09 PM  |
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JenniferEver
The Disney Lady
Member since 5/05 18163 total posts
Name:
Jennifer
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Re: Canceling Credit Card = bad for credit?
Yes, because it lowers your debt/creidt ratio, and if it's an older account it can harm the number that is the average age of your accounts,
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| Posted 3/4/08 6:10 PM |
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HeathKernandez
Our Ron is an awesome Ron
Member since 4/07 9091 total posts
Name:
baby fish mouth
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Re: Canceling Credit Card = bad for credit?
it depends. Its not good to cancel alot of CCs... Canceling one or two in the span of say 10 years isn't too bad.
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| Posted 3/4/08 6:10 PM |
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MrsYank
She's here :)
Member since 4/07 3238 total posts
Name:
Mrs. Yank
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Re: Canceling Credit Card = bad for credit?
right- I have two credit cards both with large limits, don't need them both and want to consolidate!
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| Posted 3/4/08 6:11 PM |
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JenniferEver
The Disney Lady
Member since 5/05 18163 total posts
Name:
Jennifer
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Re: Canceling Credit Card = bad for credit?
Posted by MrsYank
right- I have two credit cards both with large limits, don't need them both and want to consolidate!
Unless you're in a situation where you think having too much creidt would make you a credit risk, I'd keep them open and just cut one up.
If you have to close one, close the newer one.
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| Posted 3/4/08 6:12 PM |
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MrsYank
She's here :)
Member since 4/07 3238 total posts
Name:
Mrs. Yank
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Re: Canceling Credit Card = bad for credit?
Posted by JenniferEver
Posted by MrsYank
right- I have two credit cards both with large limits, don't need them both and want to consolidate!
Unless you're in a situation where you think having too much creidt would make you a credit risk, I'd keep them open and just cut one up.
If you have to close one, close the newer one.
Thanks for the advice! 
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| Posted 3/4/08 6:13 PM |
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BabyBoy
is Skylar Elizabeth
Member since 5/05 4189 total posts
Name:
Tom
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Re: Canceling Credit Card = bad for credit?
Posted by JenniferEver
Yes, because it lowers your debt/creidt ratio, and if it's an older account it can harm the number that is the average age of your accounts,
it depends on the line for it to affect your debt/credit ratio...thats all in the math.
customer closed aaccounts are 110x better then bank closed accounts so make you are the ones closeing it.
the age of the account could impact it if its an older account 5-7+ years...
depending on what you are doing down the road with money (house, car, major renovation, etc...) you could keep it open to the point then maybe possible use the card down the road.
If the bank notices you aren't using the card with a zero balance, they may offer you a better rate or something for you to use the account.
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| Posted 3/4/08 6:14 PM |
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Phyl
R.I.P. Sweet Mia ♥
Member since 5/06 28918 total posts
Name:
The Mystical Azzhorse! ™
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Re: Canceling Credit Card = bad for credit?
My Financial Advisor told me when I paid off two CC's to close the account, it wouldn't have a negative effet on my score!
It states account closed by user.
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| Posted 3/4/08 6:15 PM |
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Re: Canceling Credit Card = bad for credit?
Posted by MrsYank
right- I have two credit cards both with large limits, don't need them both and want to consolidate!
I have the same. I was told to alternate their usage, say every few months, even if it's for small things. It must work because my credit score is excellent! If you are looking to get a mortgage, don't close the account.
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| Posted 3/4/08 7:39 PM |
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CAMCaps
Live Laugh Love Run
Member since 6/07 4922 total posts
Name:
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Re: Canceling Credit Card = bad for credit?
True. If you have had the card for a long time it is better to keep it because if you don;t you may reduce your credit history.
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| Posted 3/4/08 7:44 PM |
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Katie111806
Team Pink!
Member since 12/06 5349 total posts
Name:
Katie
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Re: Canceling Credit Card = bad for credit?
I wouldn't close the account. Your accounts hold a lot of history, which is important for your credit score. I would do as another poster said and vary which card you use to keep them active, trying to pay off the balance each month.
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| Posted 3/4/08 7:46 PM |
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2BEANS
wow time is going fast.
Member since 9/07 16106 total posts
Name:
Tina
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Re: Canceling Credit Card = bad for credit?
The credit people told us its not bad to cancel 1 major credit card, its negative when you cancel more than 1 in a short interval of time. If its a store credit card those dont matter you can cancel as many of those as you wish.
If you have alot of Major credit cards that too could be a negative towards you. When you apply for a loan and have many cards they wont approve you b/c they will say you have all this money already available to you.
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| Posted 3/4/08 7:49 PM |
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MissJones
I need a nap!
Member since 5/05 22150 total posts
Name:
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Re: Canceling Credit Card = bad for credit?
I get it in writing that the account was cancelled by me. But I keep major cards open and only close store ones.
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| Posted 3/4/08 8:05 PM |
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Kierasmom
I love my kids
Member since 5/05 2885 total posts
Name:
Jenn
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Re: Canceling Credit Card = bad for credit?
It all depends on how many credit cards you have open. In your case since you only have 2 it would be bad for you to cancel. Not only does it lower your ratio but it's also good to show a long term credit history with your credit cards. How long you have the account open shows up on your credit report and it helps boost your score.
I am actually a credit officer for a bank so I analyze credit reports all day long. And if you can keep it open I would suggest doing so, just cut up the card if you don't want the temptation to use it. I would suggest closing accounts for somebody who has a lot of credit cards open. That's when it could lower your credit score because it could be seen as a risk that you could max out more debt.
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| Posted 3/4/08 8:20 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Canceling Credit Card = bad for credit?
I have a LOT of experience with credit cards and this is somewhat of a hobby of mine (playing credit card games) so I will comment on some of the posts here. Again this is all my opinion, but I do have a lot of personal fact to back it up with.
Posted by JenniferEver
Yes, because it lowers your debt/creidt ratio, and if it's an older account it can harm the number that is the average age of your accounts,
Best response. If you carry balances you should NEVER close cards because it lowers your debt/credit ratio. In fact it really doesn't EVER make any sense to close cards and i'll explain why down the road. The only time a card damages your credit score is twofold. When you apply for the card (inquiry) and when you carry a balance. Once you apply the damage is done. Closing the account doesn't do anything to help you.
Posted by carolinep24
it depends. Its not good to cancel alot of CCs... Canceling one or two in the span of say 10 years isn't too bad.
It's bad if its a card that you have had for a long time.
Posted by MrsYank
right- I have two credit cards both with large limits, don't need them both and want to consolidate!
Why do you need to cancel or consolidate them? Are they burning a hole in your pocket? Just ignore them. Cancelling them will really do nothing and can only harm your credit report. If they are with the same bank, you can ask them to move the credit line from one card to the other and have one card with a really FAT limit. Just don't close the other card... leave a minimal $1000 limit on it. I know for a fact that Bank Of America and Chase will do this. Citibank occasionally does this if you get the right CSR. WaMu does not allow this.
Posted by BabyBoy
If the bank notices you aren't using the card with a zero balance, they may offer you a better rate or something for you to use the account.
BINGO! This is another reason why you don't close credit cards. Some of the BEST and juiciest credit card offers are sent to existing customers! It's called a "targeted offer".
Posted by Phyl
My Financial Advisor told me when I paid off two CC's to close the account, it wouldn't have a negative effet on my score!
It states account closed by user.
Poor advice in general. Without knowing how old these accounts are, they could have a VERY negative effect on your score. I have also had cards closed by banks on my credit report and while closed by user is better to see, my scores didn't change when I had cards closed due by the bank (creditor/grantor). This was my experience.
Posted by Mrs. Patticakes
I have the same. I was told to alternate their usage, say every few months, even if it's for small things. It must work because my credit score is excellent! If you are looking to get a mortgage, don't close the account.
The only reason for alternating usage or occasionally using cards is to keep them somewhat active, so the banks won't close them due to inactivity. Not a bad idea if you like to keep accounts open. Using a credit card or opening a new loan for the reason to build up credit is a bigtime credit myth.
Posted by BabySammie
If its a store credit card those dont matter you can cancel as many of those as you wish.
This really isn't true. There is no separate section on your credit report for store credit cards over major bank credit cards. If the card reports as a credit card, then it's a credit card. Some store cards are "charge cards" which are reported differently, but most are still credit cards issued by mom and pop banks. In fact some "store" credit cards are actually issued by major banks anyways. For instance, the Amazon.com card is actually a Chase card. The google card is issued by Citi. If you close store credit cards that have long history, that is BAD regardless if they are credit or charge cards.
Posted by Kierasmom
I would suggest closing accounts for somebody who has a lot of credit cards open. That's when it could lower your credit score because it could be seen as a risk that you could max out more debt.
Having a lot of cards open will not lower your credit card score. I know people with over 300k in available credit over 30 credit cards and they have scores in the low 800s. In some cases the opposite is true. If a credit card sees you have a ton of cards with 30k limits, they will think you have cash and won't be as hesitant to offer you a fat juicy offer on a card over somebody say with one card with a 5k limit.
The ONLY time you should close a credit card is if you apply for a mortgage and the lender SPECIFICALLY ASKS YOU to close some credit lines in order to get your commitment. And don't just offer to do this. Let them ask you first because this is indeed rare.
I hope this helps. Oh and one additional tip, avoid Crapitol One cards at all cost. Without a doubt the WORST bank.
Not only do they give crap limits, they are one of the few banks that will run your credit on ALL THREE credit bureaus when you apply so you triple your inquiries. Most banks only check one.
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| Posted 3/4/08 11:12 PM |
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Mommy2Boys
My Boys!!!!
Member since 6/06 14437 total posts
Name:
C
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Re: Canceling Credit Card = bad for credit?
Does it affect your credit if a store closes your card? For ex., DH had a PC Richards card that we used to buy our TV, washer and dryer. We haven't used it in 2 yrs and it has been paid in full since than. We got a letter in the mail yesterday saying they closed our acct. for that reason. It's only been 2 yrs., you would think they would close it after 10 yrs. of no use
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| Posted 3/5/08 7:19 AM |
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luckysmom
Yes it is! Going as planned:)
Member since 6/07 5339 total posts
Name:
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Re: Canceling Credit Card = bad for credit?
Posted by CAMCaps
True. If you have had the card for a long time it is better to keep it because if you don;t you may reduce your credit history.
This is what i heard
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| Posted 3/5/08 7:42 AM |
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