U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Economics > Personal Finance
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 02-13-2009, 04:00 PM
FBJ FBJ started this thread
 
Location: Tall Building down by the river
39,605 posts, read 53,342,509 times
Reputation: 9451

Advertisements

I have no plans on using it since I'm not working right now and wanted to hurry up and pay the full balance so I won't have to worry about in March. So will leaving the account open at zero balance increase my credit score?
Rate this post positively Reply With Quote Quick reply to this message

 
Old 02-13-2009, 04:15 PM
 
Location: Jersey City, NJ
638 posts, read 2,045,468 times
Reputation: 429
Here is how I understand it. You have a line of credit on that card that helps out your credit to debt ratio. If you close that card you terminate that line of credit and change your ratio. That can affect your FICO score negatively. I have paid off a few cards recently and left them open for that reason. The only ones I have closed are the ones with the annual fees. If your line of credit on that card is only 1 or 2 thousand, it might be fine just to shut it down.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-13-2009, 04:18 PM
FBJ FBJ started this thread
 
Location: Tall Building down by the river
39,605 posts, read 53,342,509 times
Reputation: 9451
Quote:
Originally Posted by MR77 View Post
Here is how I understand it. You have a line of credit on that card that helps out your credit to debt ratio. If you close that card you terminate that line of credit and change your ratio. That can affect your FICO score negatively. I have paid off a few cards recently and left them open for that reason. The only ones I have closed are the ones with the annual fees. If your line of credit on that card is only 1 or 2 thousand, it might be fine just to shut it down.


It doesn't have a annual fee and the limit is $600
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-13-2009, 04:24 PM
 
901 posts, read 2,789,854 times
Reputation: 580
You might as well keep it open. Keep in mind that they will eventually close it because you are not using it. This happened to me with a store close that I no longer use.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-13-2009, 04:27 PM
 
13,689 posts, read 23,918,980 times
Reputation: 13986
I've had credit cards for years and not touched them. I would keep it, especially if you don't have many other cards and are young (not knowing your situation). If you're older and have several other credit cards that you've had for a long time closing it probably wouldn't make a dent in your credit score.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-13-2009, 09:38 PM
 
Location: SE MO
231 posts, read 593,105 times
Reputation: 160
There are numerous articles on msn reference this topic. In summary, your credit score will take a hit if you have too much unused credit (because you might suddenly use it); or will take a hit if you don't have enough unused credit. A goal might be to have 2 - 3 CC with higher limits but no debt (and no annual fee) along with 1 that is used frequently but carries no monthly debt (paid off each month). And 1 more that has a balance that is always paid off early. Demonstrating that you can responsibly handle a recurring monthly debt payment is a good thing. This is all rumor as the methodology for determining a FICO score is a secret. You may find there is little correlation between your actions and the FICO score. To maintain a higher score however means you are never late with a payment and have a suitable debt capibility to actual debt ratio. Check your check file frequently! Almost anyone can post a past due payment in your file and many crooks will do this because people will pay the relatively small amount.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-14-2009, 12:59 AM
 
4,271 posts, read 14,391,402 times
Reputation: 3403
There's a ton of info on the Internet so do your research and not rely solely on the posts here. The rule of thumb I've read is if you have credit, you should use it at least occassionally. The opposite is also true that if you close an account, it will also affect your credit score.

If you plan on making any major purchases within the next 6 months or so, I'd keep the card. However, if you know you don't need the card or won't be making any major purchases soon, I'd close it. That's my 2 cents.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-14-2009, 07:52 AM
 
437 posts, read 719,103 times
Reputation: 306
I cancelled a Mastercard years ago . I called them and said to cancel it and they said ok. One year later it was still open. Called again and they said "ok, you're cancelled".
Two years later, they cancelled the card because of lack of activity.
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics > Personal Finance

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top