well i paid off the last of my credit cards and all i have left is a couple hundred bucks left on dell account...i'd like to cancel 2 cards...would it hurt my credit score?
If i cancel my credit cards will it hurt my credit score?
- Thread starter gregshin
- Start date
are they your oldest cards? if so, yes. when you closed them, your credit history will be shorter.
Store Cards don't really help the credit score all that much, so it shouldn't have a large effect if you cancel it.
This is a dell card you're talking about right?
This is a dell card you're talking about right?
It depends on how old the accounts are relative to your other accounts.
It almost certainly won't help-- and in most cases does hurt.
I would only cancel a card if I was being charged some sort of maintenance fee or the account was very, very new. Otherwise, I'd leave things be.
i have a total of 5 dont ask why i was living on credit for a bit but now i resolved and finances by being responsible and paying off my debt.
spacejamz
Lifer
- Mar 31, 2003
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from 4 Credit Scoring Myths on msn.com
Closing accounts can help your credit score
No, no, no. For the umpteenth time: Closing accounts can never help your credit score, and may hurt it.
Every time I write this, I get more e-mail from people who say their mortgage lenders told them exactly the opposite. It's true that having too many open accounts can hurt your score. But once you've opened the accounts, you've done the damage. You can't repair it by shutting the account, and you may actually make things worse.
The credit score looks at the difference between your available credit and what you're using. Shut down accounts, and your total available credit shrinks, making your balances loom larger, which typically hurts your score.
The score also tracks the length of your credit history. Shutting older accounts can also make your credit history look younger than it actually is, which can hurt your score.
Of course, credit scores aren't the only thing lenders look at when making decisions. They typically consider other factors, such as your income, assets, employment history and credit limits. Mortgage lenders in particular might look at your total available credit and ask you to close a few accounts as a condition for getting a loan.
But if your goal is to improve your credit score, you generally shouldn't close accounts in advance of such a request. Instead, pay down your credit card debt. That's something that actually can improve your score.
I've heard it explained that it's b/c stores will give credit to "anyone", whereas with a typical Visa, etc that's not the case.
Who really knows the whys of creditor reasonings.
Tami
- Jan 2, 2006
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Oh shoot! I just cancelled my longest standing credit card a few months ago because I didn't need it!
Why do they erase credit history of old cards? Isn't it best to know a person's complete credit history, from first credit card onwards?
Why do they erase credit history of old cards? Isn't it best to know a person's complete credit history, from first credit card onwards?
spacejamz
Lifer
- Mar 31, 2003
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From the same article I linked two posts up....
Checking your FICO score can hurt your credit
Unfortunately, I heard this one from a mortgage broker who is otherwise pretty smart. He was confused about which type of inquiries hurt your score and which don't.
Applying for new credit is generally what hurts your score. Ordering a copy of your own credit report or credit score doesn't count. Those mass inquiries made by credit card lenders, who are trying to decide whether to send you an offer for a pre-approved card, also aren't going to hurt you, either -- unless you actually take them up on their offers.
If you want to minimize the damage from credit inquiries, make sure that when you shop for a mortgage you do so in a fairly short period of time. The FICO score treats multiple inquiries in a 45-day period as just one inquiry and ignores all inquiries made within 30 days prior to the day the score is computed.
Queasy
Moderator<br>Console Gaming
- Aug 24, 2001
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Originally posted by: fuzzybabybunny
Oh shoot! I just cancelled my longest standing credit card a few months ago because I didn't need it!
Why do they erase credit history of old cards? Isn't it best to know a person's complete credit history, from first credit card onwards?
They don't erase the history. It is just that the credit card is no longer active so they don't use it as part of their calculations where the oldest active credit card comes into play.
If there is any negative info on that inactive card (30/60/90 days late) that could still hurt you though.
Make them specify that the card was cancelled "at the request of the card holder" It will show up on your credit report as "cancelled by card holder" I have requested that, and seen it reported as such on my credit report.
Well, at one time I had like 8-9 open credit cards... I was young and foolish and applied whenever I saw an offer like a free music player, free $100 etc... I was never in debt though, the cards just sat around with 0 balances. I ended up cancelling a few of them last year and I know have only 4 credit cards. I just checked my score last week and its 765/850. Apparently, anything higher won't get you better rates on mortgages or loans. And I had my first credit account 5 years ago.
The credit report also lists every account I've opened whether active or not and will only be erased from the report in 13 years.
The credit report also lists every account I've opened whether active or not and will only be erased from the report in 13 years.
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