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| *Ostroff, Fair and Company>>>Credit |
Is cancelling a credit card better for FICO score? |
I am going to be getting a sum of money from an insurance claim and I will be paying off all of my credit cards and they will then have a zero balance. Is it better for my FICO score to just cancel them out or leave them all as a zero balance, or just cancel some and leave some other ones? Don't cancel your cards. Part of your credit score is based on you how long you've been demonstrating your credit habits. If you've never missed a bill but only have 6 months worth of history, your score will be lower than someone who's never missed a bill and has 4 years of credit history. If you're not going to use them you can cut them up, but don't officially cancel them with the company. Source(s): Attended class on how to manage credit. Paying your credit cards off or down is a great idea - given that you keep at least 3 of the oldest open. Just pay the 3 that you chose to keep down to 10 bucks. Charge something small each month - pay back down to 10 bucks. Your score will take a hit when you cancel the other ones, but you will get it back. 3 credit cards is fine. Good luck! credit consultant That's good that all credit cards will be at 0 balance, but keep them open and just don't use them, or only use the one u want... U need the to stay open so u have history, the longer the better I agree with the first poster as far as he goes. Keep only the three that you have had the longest and cancel the rest. Continue to use them for every day things like gas and food and pay them off every month before the due date. This will keep the cards active and continue to show a good pay history (35% of your score). Be sure that your balances do not exceed 30% of your credit limit every month. (30% of your score). Don't worry about the balance, there will be some additional charges that will show up between the time that your credit card comapnies bill you and when you pay them. I have done this with my cards for the last 2-years and have raised my score over 150-points. Finance Manager for over 7-years. |
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