Home     Forum     401k     401k Rollovers     Crypto Forum
    Register   Login   Members   Search   FAQs     Recent Posts    



If I cancel a CC that I don't use, will it hurt my score?

Reply to topic
Money Talk > Credit & Loans

Author Thread
skhoury
New Member


Cash: $ 1.95

Posts: 9
Joined: 23 Mar 2006

If I cancel a CC that I don't use, will it hurt my score?  Reply with quote  

Hello all,

I have three credits. Each of which I've had for about 4 - 5 years each. I have no debt on any of my cards (zero balance!).

One of my cards charges me $3/month just to keep it.

It's annoying and I wanted to cancel the card but i'm afraid that it will ding my credit score.

If I cancel, will it? SHould I do it?...I have a perfect payment history on this (and all) my cards by the way.

Any advice is much appreciated.

Thanks all,

Sam
Post Mon Jun 26, 2006 3:01 am
 View user's profile Send private message
efflandt
Senior Member


Cash: $ 80.45

Posts: 401
Joined: 25 Apr 2005
Location: Elgin, IL USA
 Reply with quote  

I have not heard of credit cards charging an annual fee (except AmEx or premium cards) for many years and a monthly fee is absurd. As long as your credit cards have the same history and no balance, dumping one should not affect your credit rating.

Just make sure that you advise them in writing to close the account, make sure that you pay any last monthly fee, and make sure you have no lingering electronic or automatic payments. Then cut up the card so you do not accidently use it.

When I closed my Discover card, they acknowledged that, but also advised me that if I use the card, the account would be reopened. So even if you tell them to not accept any further charges, they might anyway.
Post Mon Jun 26, 2006 4:52 am
 View user's profile Send private message
xboxundone
Senior Member


Cash: $ 67.83

Posts: 795
Joined: 19 Sep 2004

Re: If I cancel a CC that I don't use, will it hurt my score  Reply with quote  

quote:
Originally posted by skhoury
Hello all,

I have three credits. Each of which I've had for about 4 - 5 years each. I have no debt on any of my cards (zero balance!).

One of my cards charges me $3/month just to keep it.

It's annoying and I wanted to cancel the card but i'm afraid that it will ding my credit score.

If I cancel, will it? SHould I do it?...I have a perfect payment history on this (and all) my cards by the way.

Any advice is much appreciated.

Thanks all,

Sam




IF you have no debt on any of your cards and it isn't the first credit card you ever got just cancel it. it may affect it by a few points but since oyu carry 0 balance shouldn't matter.... as it would only have more effect if you had high balances on your cards then cancelled it as your debt ratio would increase as your limit total would lessen.

Post Mon Jun 26, 2006 1:19 pm
 View user's profile Send private message
skhoury
New Member


Cash: $ 1.95

Posts: 9
Joined: 23 Mar 2006

 Reply with quote  

Awesome, thanks for the advice guys!

One question though - I don't really remmeber if it is my first card, but what difference does it make if it is?

I have a sneaking suspicion that it does.

By the way, it is a capital one card - and it charges $3/month!
Post Mon Jun 26, 2006 2:15 pm
 View user's profile Send private message
wyclef
Full Member


Cash: $ 18.22

Posts: 99
Joined: 08 Oct 2004

 Reply with quote  

I've always found that if you have a good credit score. Don't do anything.
Post Mon Jun 26, 2006 2:30 pm
 View user's profile Send private message
moneyflow
Preferred Member


Cash: $ 19.75

Posts: 143
Joined: 22 Jul 2005
Location: New York
 Reply with quote  

In the past people were told to close old accounts they weren’t
using. But with today's current scoring methods that could
actually hurt your credit score.

Closing old or paid off credit accounts lowers the total credit
available to you and makes any balances you have appear larger
in credit score calculations. Closing your oldest accounts can
actually shorten the length of your credit history and to a
lender it makes you less credit worthy.

If you are trying to minimize identity theft and it's worth the
peace of mind for you to close your old or paid off accounts,
the good news is it will only lower you score a minimal amount.
But just by keeping those old accounts open you can raise credit
score for you.

Regards,
Daniel Cassidy

http://www.MoneyFlowForLife.com | http://www.DanielCassidy.ws
Post Thu Jul 06, 2006 6:03 pm
 View user's profile Send private message Visit poster's website
skhoury
New Member


Cash: $ 1.95

Posts: 9
Joined: 23 Mar 2006

 Reply with quote  

That's a good point - They don't report my limit only what I spend (which at this point is only $3/month on that card!).

Do you think that makes me look bad?

Great, one more thing to worry about...
Post Fri Jul 07, 2006 2:11 pm
 View user's profile Send private message

Goto page 1, 2  Next
Reply to topic
Forum Jump:
Jump to:  
  Display posts from previous:      


Money Talk © 2003-2022

Crypto Prices