I have 5 credit cards but I only use 2 of them on a regular basis. Will closing the other 3 harm or help my credit score?
It really depends on how old your credit card are that you would like to close. You could see dip in your credit score if there is a long payment history established. Do the credit cards that you want to close have high interest rate or high annual fees. You have to take that into consideration as well. Beside the losing some payment history if the cards are just costing you money I would consider closing them. Thanks! Heather with BoostMyScore.NET
The interest on them isn’t high but they’re not 0% either. I have had them for about 15 years and the only reason I still have them is because I usually get the credit card company to credit me back my annual fee. Also does your company have a financial software system that can give me some kind of algorithm feedback as to how much it would negatively affect my score? I just don’t like keeping them open incase they’re lost or stolen.
I wouldn't recommend closing them unless you will have to pay annual fees. These are old cards with a lot of history and I'm guessing they make up a significant portion of your available credit as well. Remember, your credit utilization ratio accounts for about 30% of your FICO scores, so closing 3 of your 5 cards could significantly increase your CU ratio. Also, length of credit history accounts for 15% of your scores, so old accounts like these are best left open whenever possible.
I agree with Josh. I would not close those 15 year old credit cards if they are not costing you anything. You would be losing a lot of payment history and impact your CU ratio. Keep them open and just use them every once in a while to keep some activity on them. If you don't use your credit cards then you might get them closed. Thanks! Heather with BoostMyScore.NET
i was searching on how to approach old CA on my credit file and what form of a DV to use since they might have sent first contact letters to old address. (if you know what to do any advice would be good....) BUT.... After reading this i just realized something. I'll need to add back in new Credit Cards to build new credit to boost my score up.. First secured etc...blah blah blah... So at the end of this maybe 3-4 cards will be needing annual fees.. Is this just a Fee for "maintaining good credit history". I mean for someone like me who has never "needed" to use cards for 7 years now. It sux to know i'll have to cough up $160+ (at minimum) a year to "keep this score history..." when i do acquire it because it's "needed" for lower interest rates on auto and & home loans etc...Sure Eyetech got fees wavied but is this common practice? Or do people just roll into better and better cards that have no Annual fee of some sort?
I would look into applying for a Capital One secured card. My sister in law rebuilt her credit with a CapOne card for $200 and paid $49 to get approved. After using the cards for 6 months she was able to get approved for a Capital One Platinum card with an $2000 credit limit with no annual fee. You don't need to apply for 3 or 4 different credit cards to start rebuilding your credit just start with one card and wait and apply for a better one later. Thanks! Heather with BoostMyScore.NET
I got a "promo offer" from Cap1 about a $300 unsecured card. i've applied to that offer and i'm still waiting since they sent me a letter saying my address didn't match what they had and they need time to make a decision... I doubt i'll get it , and i hope i can call them up and roll that offer into a secured card with-out having to re-run credit. But how did it look on the CR for your sister's card.... did she get a "new trade line" and the $0 annual fee card now look like a new credit card or did her past 6 months history with the first card : 1) Transfer onto the new tradline created for the new card 2) Turn into the new Account on the same existing tradeline 3) Just ended and closed with sort of remark : "account transferred" and the new card started with new history? I ask because i'm sure different options will affect the average age of an account. Lets say Eyetech calls up his Card company and elects to get a better card with no annual fee from them... Is that decision going to mess up average age of all his account some how?
Bump... anyone know what happens on the Credit report when you get upgraded to a better card with the same company?
If what you mean by "better card", such as the bank having a gold card and they upgrade you to a platinum card, it won't make a difference. The CR's look at the credit line, payment history, length of history. If the "better card" also came with an increased credit line, it should raise your score somewhat if your debt/credit ratio was significantly impacted.
