If I cancel a CC that I don't use, will it hurt my score? |
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skhoury
New Member
Cash: $ 1.95
Posts: 9
Joined: 23 Mar 2006
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If I cancel a CC that I don't use, will it hurt my score? |
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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
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Mon Jun 26, 2006 3:01 am |
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efflandt
Senior Member
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Joined: 25 Apr 2005
Location: Elgin, IL USA |
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.
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Mon Jun 26, 2006 4:52 am |
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xboxundone
Senior Member
Cash: $ 67.83
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Joined: 19 Sep 2004
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Re: If I cancel a CC that I don't use, will it hurt my score |
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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.
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Mon Jun 26, 2006 1:19 pm |
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skhoury
New Member
Cash: $ 1.95
Posts: 9
Joined: 23 Mar 2006
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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!
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Mon Jun 26, 2006 2:15 pm |
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wyclef
Full Member
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I've always found that if you have a good credit score. Don't do anything.
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Mon Jun 26, 2006 2:30 pm |
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moneyflow
Preferred Member
Cash: $ 19.75
Posts: 143
Joined: 22 Jul 2005
Location: New York |
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
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Thu Jul 06, 2006 6:03 pm |
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skhoury
New Member
Cash: $ 1.95
Posts: 9
Joined: 23 Mar 2006
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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...
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Fri Jul 07, 2006 2:11 pm |
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