Hello again, I use two cards to the extent of $3 - $5K per month. Each month I pay the cards off 100% (reimbursed business expense.) I have not carried a balance on any card for the last 15 years. I have aprox. 7 cards that I have not used for three years or more. If I cancel these cards will I damage my credit score? On my last credit check for a home mortgage the lender told me that I had high credit card balances (see above.) I explained that they are paid off each month. It seams that when there is a recurring balance each month of approximately the same amount, regardless if it is paid in full, the amount is reported as a balance? I have been a homeowner and lived at the same residence for 24 years and just moved. I plan on moving several times in the next six years, owning each time. Right now my credit score is aprox 780. Any suggestions?? Card cancellation hurt? Moving hurt? Thanks again, -Bill
I would keep the oldest account of course, and would cut down to 4 cards. If you pay off your balances every month, your debts/ratios will remain the same with 4 or 10 or 20 cards for that matter. Just remember when creditors report your accounts, they report balances so if you only have 2 cards and each have a significant balance on them (even though you pay them off) if your reports get pulled before your payments have been reported then you could hurt your ratios at the time your scores are pulled, of course after it posts you will be fine, but I would keep 4 open use 2 and just paritally use the other 2 but never have balances on all 4 at the same time. But heck a 780 is nothing to sneeze out that will get your A+ loans anyway. Mom
Thanks mom! I think you hit the nail on the head! When my credit file is pulled I will always have a significant balance except for one or tow days out of the month when the cc company receives my payment in full. Yes the score helps but not that much. I am 45 yrs old and have credit since I was 19. Never late and have owned a home since I was 21. I have always wondered why my score is not higher. How high can it go? Do you know why 4 is the magic number for the number of credit cards held? Thanks again, -Bill
Fico ranges from 300-900 of course I have never seen nor heard of anybody getting 900 LOL. It was recommended at the Fair Isaac site that the ideal formula usually consist of 3-4 major cards, 1 retail card, and an installment account. You seem to have all the bases covered and have a great score.
YES, TOO MANY CARDS CAN HURT, let me tell you. I have the same problem...I pay DISCOVERCARD in full every month...but the credit report shows a balance EVERY month, because I guess they use the amount on the billing date, not the amount on the payment received date. TRY OVER~PAYING FOR TWO OR THREE MONTHS... PAY THE BILL IN FULL PLUS WHAT YOU THINK YOU WILL OWE ON THE NEXT BILL... MAYBE YOU WILL HAVE THREE MONTHS OF ~$0.00???
