Credit Card Question

[v3rrv3]

Hey Guys,
I heard somebody mention that cancelling a credit card less than a year after you get it can do something with your credit score, anyone know the truth to that? I have a citibank card and despite almost never having a balance on it, 9% elsewhere sounds way nicer than the 17.9% or whatever they're giving me.

Thanks,
Kevin

 

[compuwiz1]

If you owe money on other cards, it will make you have a higher revolving balance on your cards, in relation to available credit. That can hurt your score. If you typically don't carry a balance and your balances are all zero anyway, then it will have little or no impact.

 

[v3rrv3]

Thanks Not necessarily zero balance yet but they all will be when I cancel the card I did my credit awhile back and it was like 730-750 so I'm trying to keep it as good if not better for when I want to buy a car in the next year.

 

[crt1530]

Don't cancel the card. Just leave it open and "sockdrawer" it. Leaving the card open helps your credit score by giving you a higher average account age and higher total revolving credit limit.

 

[KarenMarie]

leaving cards open will not be good if you want to open a new one with a zero % interest offer. I learned that the hard way. Tried to take one of those offers up... zero % interest for a year... but i have so many credit cards, mostly with zero balance, that the new card only offered me $2,500 limit... not high enough to transfer the entire balance i wanted to. when i called to ask why the limit was so low... the csr told me if was because i had too many cards open with zero balance and that makes new lenders not want to give me too high a credit.

 

[v3rrv3]

I think the sock drawer Idea might be good. What do you consider a bunch o fcards? I have one through Citibank, one through Alaska Airlines/Bank of America and the third would be a Chase card.

 

[farmercal]

Originally posted by: v3rrv3
I think the sock drawer Idea might be good. What do you consider a bunch o fcards? I have one through Citibank, one through Alaska Airlines/Bank of America and the third would be a Chase card.

I have two and that's one card too many.

 

[LukFilm]

Originally posted by: v3rrv3
I think the sock drawer Idea might be good. What do you consider a bunch o fcards? I have one through Citibank, one through Alaska Airlines/Bank of America and the third would be a Chase card.

I have almost 40 credit cards that I always pay off in full, so you have a bit more to go before you have "enough"

 

[crt1530]

Three is nothing. Unless you actually charge a decent amount to that BofA card, you are not going to make it worth the annual fee ($40?). Call up BofA and change the type to one of their cards with no annual fee. Also, all of this is moot if you continue to carry a balance on your card(s). Paying any amount of credit card interest when is stupid. Much more stupid than having too many or too few credit cards.

 

[RossMAN]

3 is nothing, come back to us when you have > 15.

 

[Queasy]

Originally posted by: crt1530
Don't cancel the card. Just leave it open and "sockdrawer" it. Leaving the card open helps your credit score by giving you a higher average account age and higher total revolving credit limit.

True statement. Keep the card. The longer you have it the more it helps establish a positive credit history.

 

[Axoliien]

I just moved to a single card to do all my personal use, and a single card for all business use. Credit isn't all about having tons of cards, but rather about having a good history with the cards you do use. Be wary to getting a new card and then cancelling it immediately though, because credit checks from different companies for different reasons may affect credit score. An exception would be like when you are buying a house and get quotes from several financing agencies, the credit bureau recognizes this and these do not hit your score negatively. I found that out after calling when I was getting financing for my home.

 

[Pepsi90919]

i think people paying an annual fee is hilarious, unless it's a centurion.

 

[Reckoner]

Originally posted by: Pepsi90919
i think people paying an annual fee is hilarious, unless it's a centurion.

The $30/year Starwood Amex is worth it imo.

 

[dr150]

Originally posted by: PaulNEPats

Originally posted by: Pepsi90919
i think people paying an annual fee is hilarious, unless it's a centurion.

The $30/year Starwood Amex is worth it imo.

QFT.

Starwood FTW!