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| *Loan,banking and credit>>>credit score |
If you have a zero balance on a credit card is it better for your credit score to keep it open or close it? |
I once was told it hurts your credit score when you close accounts. Is this true? You've had a lot of answers. Here's one that may help you. Your credit scores are reflected by how many accounts you have open and how much total debt you have. This includes car payments and house payments, etc. Your credit rating shows up as total amount due for all accounts. Since this is the case, it is best to close an account if it is dormant. The more accounts you have open, the worse it looks to the creditors. close it. Even if you have a 0 balance. Every credit card you own makes you more of a risk, therefore a worse credit score. Not true, because if it is open it means that you have the possibility of charging your card's limit. If it is closed, the that lowers the possibility of you having that much more debt. If that's your only credit card, keep it open. If you have others, close it. It always looks good to have open accounts with a zero balance. Don't close it. Funny you should ask. I had a Sunoco credit card, and I recently received a letter saying they were cancelling it. Apparently my spending patterns have changed, and they're cancelling it because I haven't used it-- in their words--"Recently." I haven't used it for12 years. "Recently?" So- don't cancel it, just leave it alone. Maybe by 2019, they'll cancel it for you. The answer is, maybe. You see, there are two factors at work here. First, there is the plus factor of variety of credit. More than 1 credit card is better than just 1. On the other hand, the more available credit you have, the more trouble you can get into, and that factors into your score as well. Perhaps the real question is, do you need the card? If so, keep it. I keep one empty, high limit card in my safety deposit box. If something major goes wrong, I have a safety net. |
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