- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Does canceling a credit card hurt my credit?
Posted on 4/15/14 at 5:12 pm
Posted on 4/15/14 at 5:12 pm
I have a credit card that I would like to have canceled. I've never been late on it and don't owe any money on it. Will having it canceled hurt my credit score?
TIA
TIA
3
Posted on 4/15/14 at 5:22 pm to DownshiftAndFloorIt
My understanding is that if you have other revolving credit, it will increase your card "utilization," which negatively impacts your credit score.
If you have 2 cards - let's assume:
One card has $1000 limit and a balance of $500...
The other has a $1000 limit and balance of $0.
This scenario would be $500 balance across $2000 = 25% utilization.
After dropping the $0 balance card, you now have 1 card totaling $500 in balance with $1000 limit = 50% utilization.
If you have 2 cards - let's assume:
One card has $1000 limit and a balance of $500...
The other has a $1000 limit and balance of $0.
This scenario would be $500 balance across $2000 = 25% utilization.
After dropping the $0 balance card, you now have 1 card totaling $500 in balance with $1000 limit = 50% utilization.
Posted on 4/15/14 at 5:31 pm to DownshiftAndFloorIt
quote:
I have a credit card that I would like to have canceled. I've never been late on it and don't owe any money on it. Will having it canceled hurt my credit score?
Really, it depends. If your credit is already well established and you have a multitude of cards/lines, then it won't be that bad.
However, if this is an old card and you don't have many/much overall credit, the damage can be pretty good.
If its a no fee card you have no reason to cancel it. Just put a small charge on it every 6 months so the creditor doesn't close it on you (which isn't bad in of itself, just has the same effect as above).
This post was edited on 4/15/14 at 5:31 pm
Posted on 4/15/14 at 6:17 pm to Teddy Ruxpin
Have this same question too. credit score in the mid-700's. credit card has an available balance of something like 15k. No balance carried on it. Never late and haven't used the card in a couple/few years.
Honestly, it is an old account and don't even have an active card. They sent a new one out after the old one expired and I never activated it. It is in a drawer.
Was wondering if I should keep it, activate the card, cancel it, ask for a credit reduction.
Looking for a new mortgage in the next year or so, so hoping to make my credit score look as good as possible.
Honestly, it is an old account and don't even have an active card. They sent a new one out after the old one expired and I never activated it. It is in a drawer.
Was wondering if I should keep it, activate the card, cancel it, ask for a credit reduction.
Looking for a new mortgage in the next year or so, so hoping to make my credit score look as good as possible.
Posted on 4/15/14 at 6:20 pm to fightin tigers
quote:
Was wondering if I should keep it, activate the card, cancel it, ask for a credit reduction.
Looking for a new mortgage in the next year or so, so hoping to make my credit score look as good as possible.
And maybe even use it on a pack of gum every now and then to keep them from closing it on you. If it has no annual fee, there is no reason to cancel it.
Posted on 4/15/14 at 6:27 pm to Teddy Ruxpin
No annual fee, think they raised the rate to like 8% a few years ago because I didn't use it.
My wife has a card to that she uses occasionally, think it has 2-3k limit.
My wife has a card to that she uses occasionally, think it has 2-3k limit.
Posted on 4/15/14 at 6:33 pm to fightin tigers
quote:
No annual fee, think they raised the rate to like 8% a few years ago because I didn't use it.
Well the rate only matters if you don't pay your bills, so just keep it open. Right now its doing two things for you, extending the Average Age of your credit(Green), and helping with your utilization rate(Pink).
This post was edited on 4/15/14 at 6:34 pm
Posted on 4/15/14 at 6:34 pm to Teddy Ruxpin
quote:
this is an old card and you don't have many/much overall credit
This is the case. It's my only credit card right now. Planning on getting another one tomorrow.
Background information: I'm just getting out of college, just accepted a very good job, and I'm trying to cut my mom's nose out of my finances. She got this card for me in highschool. Has a $1000 limit and I don't even know where the bill goes. She takes the money out of my account to pay the bill (a whole different issue that I'm solving tomorrow). She's also really good at being clueless, and twice I've had to fork out close to $1000 to pay it off because she was paying the minimum instead of paying it off like I asked and I maxed out
I haven't used it in a few months.
Would it be easier to deal with getting the bill sent to my house and making it where she can't look at it? Leave it like it is and never use it? I'm calling the CC company tomorrow to see what they have to say, but I'd like to have as little impact as possible on my credit. I have to buy a car soon and move out ASAP.
Thanks money board. I'm clueless on this shite.
Posted on 4/15/14 at 6:50 pm to DownshiftAndFloorIt
quote:
]Would it be easier to deal with getting the bill sent to my house and making it where she can't look at it?[/b] Leave it like it is and never use it? I'm calling the CC company tomorrow to see what they have to say, but I'd like to have as little impact as possible on my credit. I have to buy a car soon and move out ASAP.
Just log in online if you can and change the address to where you live/change the password and get full control of your finances. Most kids have to go through this at some point in their lives.
However, DO NOT close that card, even if it sucks arse. Its age is working for you, even if you aren't using it in the future. I have two OK cards, one I got at 18, another at 22, that I don't use and they just hang out and have beers with me from time to time.
quote:
Thanks money board. I'm clueless on this shite.
No worries, you will be purified.
This post was edited on 4/15/14 at 6:52 pm
Posted on 4/15/14 at 7:56 pm to Teddy Ruxpin
quote:
Teddy Ruxpin
Thanks for the advice.
Just was worried about having so much free credit (potential debt) out there. Thought it would be a bad idea to reduce the credit line since there is no reason and all someone would see is that they took away credit.
Posted on 4/15/14 at 8:41 pm to DownshiftAndFloorIt
I'm going to concur with Teddy. Keep it open as it sounds like it's your main source of credit history. It kinda sucks having your mom on the account, but that's not worth closing it.
I had a similar situation where my only credit card was tied to my parents. I closed it after I got approved for a mortgage and a couple of credit cards that were just mine. Once I got my own credit established, I cancelled the card. That would be my suggestion.
I had a similar situation where my only credit card was tied to my parents. I closed it after I got approved for a mortgage and a couple of credit cards that were just mine. Once I got my own credit established, I cancelled the card. That would be my suggestion.
Posted on 4/15/14 at 10:53 pm to Teddy Ruxpin
quote:
Just log in online if you can
There lies the issue
I'll keep it open and call tomorrow to see if there's any kind of minimum usage or anything. My questions are answered
ETA: Does maxing out hurt me? It's happened twice. Paid it off the same day that I found out about it.
This post was edited on 4/15/14 at 10:55 pm
Posted on 4/15/14 at 11:21 pm to DownshiftAndFloorIt
Since it's you're only card, yes maxing it is absolutely hurting you. Once you get over 30% usage across all your credit lined (and you have one) you are in bad joo joo land.
You can't be over $300 when that card closes each month for the statement balance. You would do well to get your limit increased or seek out credit lines from another bank.
You can't be over $300 when that card closes each month for the statement balance. You would do well to get your limit increased or seek out credit lines from another bank.
This post was edited on 4/15/14 at 11:23 pm
Posted on 4/15/14 at 11:48 pm to Teddy Ruxpin
quote:
Once you get over 30% usage across all your credit lined (and you have one) you are in bad joo joo land.
Awesome. I'm sure my credit is absolutely horrible due to me being stupid and allowing my mom to handle this shite because she thought she was more competent than me. Pisses me off because I was always extremely anal about never putting more on it than I could afford to pay off at the end of the month.
That's what I get I guess. Think it'll be bad enough to keep me from borrowing money for a car? If I can't buy a car soon I'll be extra fricked.
Posted on 4/15/14 at 11:48 pm to Teddy Ruxpin
I have a question sort of similar to this. We are in the process of selling our house and I will be paying off both our cars. We are moving in with my in-laws while we build our new house but we aren't starting till the end of the year. I will be debt free except for 1 credit card that I pay off every month. In which way will this effect my credit score? I was mid 700's last time I checked.
Posted on 4/16/14 at 12:01 am to jmh5724
If you're not using it, it can only help to cancel. When you cancel, be very emphatic with the CC company that you not only want to de-activate the card, but you also want to terminate the line of credit associated with the card. Otherwise, it will continues to be seen by the reporting agencies as a line of credit - even if it's not funded ($0.00 balance). The CC companies are very shrewd in this regard. They give you the impression it's off your record, when in fact it's not. Watch them.
Posted on 4/16/14 at 12:10 am to DownshiftAndFloorIt
Chill out man, you're probably alright. Once you get back under that high utilization rate your score clears up quickly.
Please refrain from hurting your mother
Posted on 4/16/14 at 12:14 am to Teddy Ruxpin
quote:
Please refrain from hurting your mother
If I was going to hurt her behind money, I would have hurt her a longggggggggggg time ago. She's costed me more than a few dollars that she doesn't know about and I try to keep it that way.
So the ace big major concern here is: will I be able to borrow money for a car? Post graduation, I won't have a reliable way to get to work without something newer.
Posted on 4/16/14 at 12:14 am to jmh5724
quote:
I have a question sort of similar to this. We are in the process of selling our house and I will be paying off both our cars. We are moving in with my in-laws while we build our new house but we aren't starting till the end of the year. I will be debt free except for 1 credit card that I pay off every month. In which way will this effect my credit score? I was mid 700's last time I checked.
Your score is more than just your credit cards, all I can say is, closing lines usually pushes it down by losing average age of credit and raising you're utilization rate, but if you're credit is strong that "push" might be minimal to nonexistent.
For example, if I have 9 credit cards that are twenty years old with minimal balances with total limits of 90k, and I cancel the one year old card that has 5k in credit, it's probably not going to hurt you all that much. Of course an alternative scenario could.
I'd keep the card open because
quote:
If you're not using it, it can only help to cancel.
Is just wrong as an answer,
This post was edited on 4/16/14 at 12:23 am
Posted on 4/16/14 at 12:16 am to DownshiftAndFloorIt
quote:
So the ace big major concern here is: will I be able to borrow money for a car? Post graduation, I won't have a reliable way to get to work without something newer.
If you have one credit card with $1,000 limit and that is the extent of your credit, and you seem relatively young, I'm sure someone will lend, but the terms are probably not going to be great, probably dreadful.
If you have a decent job I'd look into getting a no fee cash back card from Chase or discover, etc. Those are great starter to immediate cards for building credit that can put some money back in your pocket. The discover one comes with a FICO score which you might like as a benefit to track your progress.
This post was edited on 4/16/14 at 12:21 am
Page 1 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News