Question about credit card?

**bamamomto4** · 12-30-2005, 11:31 PM

I had a cc where I did a balance transfer last month or so....Do I cancel that card or keep it? I've heard several people say keep it,some say cancel it. I've had it awhile. Not sure right now what the interest rate is but being a cc it's got to be high lol
Does it look better on my credit report with or without it?

I personally want to cancel it. I dont plan to use it again,but I dont want to be tempted or even look at it lol
I have it put back in my wallet,but I guess if it looks better to keep then I can stick it in the safe or something.

**missmollymayhem** · 12-31-2005, 01:06 AM

If you think there might be a chance that you'd use it again... I'd cancel it. You don't need it!!!!

**AmyBoz** · 12-31-2005, 10:42 AM

Cancel it. It doesn't look good on a credit report to have a bunch of lines of credit open, whether they are being used or not.

**Telephus44** · 01-01-2006, 02:08 PM

I'd keep it open. DH and I just did that with one of our cards (they jacked the interest rate to 30.49% - so we made a huge payment and transferred the remaining balance). We physically shredded the card, so we won't ever use it. Next year we hope to buy a house, so we're really trying to get on top of our credit score - between us we only have three credit cards (I've heard varying opinions as to how many you *should* have for a good credit score, but the general consensus seems to be between 2 and 4) and this card was a card that DH has had for 5 years - so we chose to keep the account open. I don't know the precise formula, but I do know that it helps your score to have accounts that are open for a long time, so that they can see that you have paid them on time, every month, over a long period of time.

Interestingly enough, right after we had a zero balance they upped the credit limit to $18,000! (Like we would want to pay a 30.49% interest rate onf $18,000! Yikes!)

**forestdale** · 01-01-2006, 02:20 PM

I'd cancel it, I think you only need one credit card. I run a zero balance on mine and use it for emergencies and for ID.

I was looking for info about credit cards a couple of weeks ago and found this. It might help you with your decision. It's from http://militaryfinance.umuc.edu/plan..._too_many.html

"If you get a lot of credit card solicitations in the mail or by telephone, it does not necessarily mean that you are a good credit risk. Credit card companies want people who will run up big balances. Having multiple credit cards can cause serious problems.

Don't get in over your head
Having more than a three credit cards signals lenders that you have the potential to get into too much debt too fast. It may also cause banks to decline your applications for other types of loans, knowing that you already have a sizeable chunk of cash available on your credit cards. Even if you don't have a balance on the cards you own, your bank knows you could run up charges quickly on any open card. The bank may deny you the mortgage you would get if you had fewer cards.

More than three spells trouble
It's difficult to keep track of more than three credit cards. Because terms, grace periods, and interest rates vary, you may find yourself paying unexpected fees and penalties. Fewer cards are easier to keep track of, and mean less interest. How do you know if you have too many cards? If you cannot pay off your combined debt in one year, you are heading for credit card trouble."

**PrairieRose** · 01-01-2006, 03:16 PM

With very little consideration to credit scores and such......I'd cancel it. If you don't have it you can't use it.

**couponchic** · 01-01-2006, 07:37 PM

Clark Howard suggests keeping 2 credit cards only. Lots of good info on his website at www.clarkhoward.com . If you have more than 2 credit cards, I'd cancel the one you just paid off.

**homesteadmamma** · 01-02-2006, 07:32 PM

Cancel it.

The best possible way to buy anything is to have no debt, no cc and a nice down payment. You don't need to have a number of cc to have a good credit rating. All companies need to do is look to see if you have paid your utilities on time, your taxes on tme, etc.

Also if you keep applying for cc, banks will look twice at you before lending you any money.

Don't be fooled by cc companies. Rhonda is so right, most cc companies don't care if you can make the payment or not. All they want is for you to rack up large amounts of dollars.

**Deborah_Kate** · 01-04-2006, 10:34 AM

I'm late into this thread but I can offer an opinion. If you have had the card for a long time don't cancel it. It will negatively affect your credit rating even if you don't have to worry about buying any more big ticket items like a house or car anytime soon.

Part of how the credit score is figured is how long you have been in good standing with whatever company you owe money too. After a while if you don't use a credit account then it will show as "inactive" on your credit report.

It's kind of a catch-22 situation. Too many open accounts is bad, too many accounts closed in too short a time or at all is bad. I wish they'd make it easier for those who are non-accountants to get. Brian doesn't get his credit report at all, but I make him pull it every year just to look at it.

Deb

**Jeanna** · 01-04-2006, 10:39 AM

I agree with the ladies that say close it. When someone runs your credit they not only look at what your balances are, what you haven't bee on time with, but also how much credit you could run up. I know I just had my credit ran and it showed that I had credit cards that I had paid off and then a note that says canceled at clients request.

**Jillybean** · 01-04-2006, 02:25 PM

You need to leave it open. You can always cut up and throw away the actual card so there is no temptation to use it. Credit rules have changed and now its all about your credit score or FICO score. FICO stands for Fair Isaac Co. the creators of the scoring system. No one knows exactly how they figure it "cuz they ain't tellin" but mainly there are 5 things they look at. Each thing counts for a different percentage of you score. Any score below 580 won't qualify for any kind of credit over 720 is excellent and get all the 0% financing deals.

1.Payment history if you pay on time or if you have late payments and/or delinquencies. Of course the more dings to you credit the lower your score.

2. Debt ratio's. How much your existing balance is using of your total credit available. If you are close to your limits this will lower yoour score. .

3. The length of your credit history.

4. New credit applications. Everytime someone checks your credit it counts as an inquiry. The more looks into your credit the lower your score. Notw when shopping for a home or car loan all check within a 2 week period a counted as one so you don't get penalized for comparrison shopping.

5. The different types of credit you have.

Everyone not familar should do a search and find out about credit/fico scores. Credit scores are important because the higher your score the lower you interest rates for homes, cars and yes even credit cards. IN this case it seems as if closing out the card would lower your score....so leave it open.

Jill

**MandiDawn** · 01-04-2006, 02:35 PM

well - my take on this is cancel it. I only have one credit card, and my FICO score is in the high 700's.
I think the biggest thing is - how is your credit now? is it good and can afford to take a hit IF canceling it does that? Or is it bad adn you need all the help you can get? Are you planning to buy a house or car in the next 2-3 years? You score will recover long before then.
I dont' like having accounts open in my name floating out there, so if it was me, I would cancel it and not think twice.

**Jillybean** · 01-04-2006, 02:54 PM

Mandi dawn makes a good point. It really all depends on what your score is now and if you can afford to take the hit temporarily.

I also wanted to add that your credit score is being used for more than just interest rates. Most car insurance companies now check your fico score and base your rates on it. It's also being used by potential landlords and employers.

Jill

**Lucky Star** · 01-04-2006, 04:59 PM

From everything I've read, once you already have a credit card open, canceling it would not improve your credit score. It may lower it, if this credit card has been open for longer than the other cards, in which case your credit history gets shortened (this happened to me once). I've never heard of anyone having a low credit score and/or being denied credit for having accounts that are open but not used. You'll only take a hit for opening a new account, or carrying balances that are large relative to your credit limit (even if you do pay them off every month).

If you are concerned about using the card, I'd follow what others have suggested and just cut up the actual card and throw it away - that way, you don't have to cancel it but nobody can use it anymore.

But again - to each his/her own, so do what you feel most comfortable with!