Basically I have 3 cards, and I'm thinking of canceling one of them since there's really no point in having 3. I want to know what goes into your credit score from your credit cards so I don't cancel one that is helping my score. Don't they just take into account average account age and account balance? Do they not care about credit limit? I don't have any late payments, ever.

I have varying credit limits and varying ages of accounts. My newest acct (even though its almost 2 yrs old) also has the lowest limit so I might ax that one. Thoughts?

 

I think your credit score depends on your account balance vs. your total limit. So, if you cancel one that you don't use your credit score may actually go down a bit.

 

i have read the canceling a card will decrease the credit available to you, so your used credit to available credit ratio will go up making your credit worse. I would probably just keep it open and cut up the card.

 

OK I was wondering because my 3 limits are about 10k, 5k, and 2k and the youngest one is the 2k card, so if i got rid of that it would raise my avg acct age, but i was not aware they put that much stock in available credit. Thing is, I'm also thinking about identity theft/account stealing etc. and there's no point in keeping extra accounts if you dont need them. ill look into it more.

 

yeah there are trade offs with everything and I am sure everyone has their own opinion.

 

Dump the youngest one. How much could it possibly effect your score? I bet not much.

 

I've always been told that cancelling a card is bad for your FICO score.

 

It doesn't hurt it much. It can actually hurt your chances of getting a loan if you have TOO MUCH available credit! But you don't want to cancel a card you have a huge history on. So cancel the youngest one.

 

Don't cancel, because it'll hurt your credit score, and don't cut, but keep it stashed instead, but use it time to time so it doesn't become inactive/irrelevant when it's time to accumulate your credit score.

 

exactly

 

Right.

Leave it in 0 balance, and use the other 2 cards.

 

If you do that, make sure that particular card has no yearly fees associated with it.

 

When I called up my lasty CC they didn't let me cancel. They said just to not use it for two years and it owuld go away. What do I have to do to get them to cencel the damn thing?

 

Don't cancel. Just cut up the card into a fine dust. If you should ever need it again, for some reason, just call up the company and they will reissue a card. Of course, if it's one of those cards that you HAVE to use at least 9 times a year, then just use it for a month or something like that.

Opening and closing credit accounts show that you are active in the credit market which is bad for your fico. As everyone says, just leave it open and leave it alone. Your average balance vs. your outstanding credit amount is a big part of your score. And unless you are a programmer for one of the 3 credit companies, no one knows EXACTLY how the credits are scored. But you can get a close approximation of what to do and what not to do.

 

One of the things I want to do is open a new credit card from the Bank where I have my checking account. The card I have now used to be a Gateway 2000 and X percent went towards a new PC. That deal went away, so now Its just some dumbass card from MBNA.

 

Ask to speak to the phone operators manager. They'll offer you all types of stuff (lower rates, etc), to keep you, but stay firm and tell 'em to cancel it.

I know that cancelling will in effect lower my score, but I've got 2 sears cards, and one is gotta go. I was "tricked" into thinking I was upgrading my original sears card, but instead got a new account. I don't need 2. I've got excellent credit, so I don't mind taking a small hit on my FICO (it's like 770 now), to clean up some "loose ends" on my credit report.

Cancelling a card is probably not a good idea for someone trying to build credit Not using it is a safer way to go.

 

I was in the assumption they were major credit cards; in your case what you can ask is for combining both credit limits into one and closing the other Sears card. If they dot budge for that, then just close. Non-Major credit cards dont look as good as a Major Credit Card as far as I have read.

 

Well my 3 are AMEX, MC, & Discover, so I guess I'll just keep em all.

 

I will suggest the same.