im trying to make sure that i have a really good credit score when i purchase a house and paid off my credit card debts ,somebody don%26#039;t cancell my acct just cut the cards up and dont use but thay cant tell me why ,pls help
Can somebody tell me why is not good to close a credit card account after you had paid it all off?
Many factors influence your credit score. One determinant is how much credit you are using divided by how much credit you have available. If you have multiple credit accounts (not just cards), cancelling one of your cards will decrease your total available credit, making it look like you are actually using a higher amount of credit. For more information, and perhaps a clearer explanation, see this article... http://moneycentral.msn.com/content/Bank...
Hope that helps!
Can somebody tell me why is not good to close a credit card account after you had paid it all off?
Its a good idea because it helps build ur credit....make small purchases so u know that u can pay them off......the more credit u have the better!!
Can somebody tell me why is not good to close a credit card account after you had paid it all off?
Do not cancel your account. Just leave it open and don%26#039;t use the card. This will show that even though you have credit available you don%26#039;t always use it. You will look responsible in the eyes of the credit bureaus.
Can somebody tell me why is not good to close a credit card account after you had paid it all off?
This is a tough question and is based on the rest of your report. If you only have 1 or 2 credit cards with $0 balances that is helpful. However if you have many revolving accounts open it has a negative effect on your score even if you have $0 balances. Creditors do not like to see multiple revolving accounts. I personally would keep one open for any unexpected events but close all others. This will show the creditors that you are both responsible and concious about your credit.
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