Is Cancelling Credit Cards Bad for My Credit Score? - credit cards bad scoring
After years of hard work, I cleaned, "Finance and now my actions have good credit again.
The first credit card came after years of not a tax of $ 50/year. Since then I have received two more letters, no annual fees and limits of better credit.
I want to cancel my card with the annual fee, but some friends told me that credit cards for the deletion of your credit score is bad.
Right? If so, why should it be?
For your information, the three cards that I use regularly, but never carried out, a balance to be paid in full each month.
Saturday, January 23, 2010
Credit Cards Bad Scoring Is Cancelling Credit Cards Bad For My Credit Score?
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You can use this service credit monitoring pre-estimate of future results for different scenarios, such payments - buildcredit.ifastnet.com
The average age of accounts are used by about 10% of the points to be calculated. You can make a minimal impact on your account when the largest of its cards, but keep the account on your credit report for 10 years so that will be a delayed effect. Do not worry if other accounts remain open and in good condition. They are probably much better to close the account and the elimination of the fee. If you never balance will not affect your ratio of debt to available credit. It is the largest part of the score, and he needs it addresses.
Another advantage of the dissolution of the account is that the lenders do not see a huge potential liability if you apply for a loan.
When you take your credit card your guests a bath, the reason is that the position of the historical account and you can calculate your total score. An account is an account that is closed is that 5 years of credit and perfect payment can be included in the best score. It is better to keep it, but if all other accounts are good, then you can afford to have the temporary immersion score came back.
Your credit score should not be affected, but some creditors hesitate if you have available, unused credit lines. For example, if you use a credit card with a limit of $ 5,000 and a payment of $ 0, which means that $ 5,000, which can operate at any time, the risk of non-payment of other stocks. Some creditors consider this question in the wrong direction.
Most people say it's good to have high balances on credit cards, but always make your payments on time. If you can not get rid of with a card, it.
Closing a credit reduces the available capacity to its own use and reduces their credit history, score both to reduce your credit. Having said this, I would cancel the card. If you never carry a balance, and reduce their balances within 30% of available credit, and pay all your bills on time and in full your credit score will recover quickly.
For now: breaking anything. Staying the course and continue to pay your bills on time, as they were. You will receive a positive response to his credit.
Best Answer: Wait until after February 2010. That's when all the new rules come into force.
At least you do not have an American Express Centurion Card. From 2009, the annual inflation rate in the United States was 2500 with a time $ 5,000 initiation fee for the first year!
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