Question:
Does it hurt your credit score when you cancel a card that is paid off with a zero balance
Answers:
It could hurt your score. But how much depends on how old the credit card is and how much it effects your total available credit.
One factor is your average credit age, if this is your oldest card you are lowering your credit age when you close it. This will in turn lower your score. However, overall in the score this accounts for only about 15% so it should not be significant.
The other factor is your credit utilization, this accounts for about 30% of your total score. Utilization is your credit available compared to credit used. Ideally this needs to be under 30% for the best scores. If this card has a low limit and does not cause your utilization to go over 30% with the remaining cards you should be just fine. If you are using more than 30% of your total credit lines you need to get that down under the 30%.
If the only reason you are closing it is because of the annual fee, call the bank and ask if they will waive the fee. If you say you are going to close it if they don't, then they may remove the fee to keep you.
no, as long as you met to the terms of the contract. zero balance is great. i suggest getting your credit limit extended to a higher balance as often as possible (usualy every 6 months) keep it at a zero balance and when other creditors see it when they pull your Credit Report it shows you have a good history on a monthly basis with high limits and low balances... check out annualcreditreport.com for more help on that.
Yes, it definitely can hurt your score if it has never been delinquent and it currently reporting as a positive account on your credit report.
If there is no annual fee, I would highly suggest keeping it open, especially if you have had it for a long time.
If the account was ever reporting negatively, it doesn't matter if you close it or not.
two big advantages does a rejection letter brings? Read on and enlighten yourself.
1. The first advantage that comes with a rejection letter gets its validity from a statute in the Fair Credit Reporting Act. This Act offers some good protection to credit card owners. According to this act whenever you are denied a credit for some reason, you have the right to know what circumstances or facts led to that rejection. So, if you are rejected because a particular credit rating agency has made adverse credit remarks in your credit report, the credit card company that has rejected you must state the name of related credit rating agency and their remarks to you. Further, the Fair Credit Reporting Act states that every rejected person is entitled to request a free credit report from the credit rating agency listed in your rejection letter or denial report. So, you get a free credit report.
2. The second big benefit that a rejection letter or denial report brings to you is the exact reason, which led to the unfortunate decision. The importance of this information can't be understated, and it can be successfully used to rebuild your credit history.
Attitude matters here, though the rejection letter or denial report gives you certain things that can become tools for your credit repair, but it all depends how well you use them. Why wait for a rejection letter to get a free credit report? Read more from: http://www.credit-card-gallery.com/free_...
This article contents is post by this website user, HiAnswer.com doesn't promise its accuracy.
More Questions & Answers...