Credit Score?
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Is it true that if you cancel a credit card, it goes against your credit?? I've heard that you should just cut the card up and don't ever use it again. I had a credit card through my bank, and now they gave me a better interest rate w/ an actual line of credit w/ another card, and transferred my money to the new card which has a higher balance and they said to call the number on the back of the card to have it cancelled, but I've heard that it goes against your credit score. Is it true??
Credit Score?yes it can go against your credit because although you are eliminating that debt you are still remove a good credit reference from your account
if you dont want the card anymore then cut it up and never use it but keep that good history on your report
Credit Score?Believe it or not, closing an account can have a negative impact on your FICO.
Some lenders will look at your credit report and say you have to little credit and will not issue you a credit card.
Credit Score?It is true that closing an account can negatively effect your credit score. Your score is largely impacted by available "unused" credit. So open credit cards with zero or low balances are actually a good thing. If you close them you reduce your "available credit". I know you might have to pay annual fees but with time your credit worthiness raises, and being able to get credit with lower interest is worth more then the annual fees. As for transfering balances, think before you act. Number 1: after initial transfer how soon will the interest on the balance change, Number 2: credit cards with more then 50% used credit negatively effect your credit score, Number 3: if you decide to transfer have a plan to pay it off during the introductory rate AND STICK TO IT. I hope this helps.
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