Can having a zero balance credit card that you do not use hurt your credit scores?
Yes if you do not use an they close you're account, but not really either way.
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Does it hurt your credit to close a credit card account that has a zero balance and is in good standing?
Credit scores are calculated based on ALL the information showing in your credit at the time they are requested. In addition, they factor in "open" accounts in certain areas. …You haven't provided enough information about your overall credit to receive a specific answer. If you have two to four revolving accounts after closing this one, you may be fine. If this is a recently opened account, you may be fine. But closing any account may change the length of time you have had credit (one important factor in scores), or the amount of credit available to you (which would change your ratios, another important scoring criteria). With a detailed picture of your current credit standing, someone with enough knowledge might be able to guess. But it would still be just a guess. The only way you will know for sure is to pull your scores, close the account, and re-pull your scores.
Transferring balances \n. \nTransferring the balance doesn't usually affect credit. You actually will be better off doing this for those cards that were closed by the compa…nies, because they will report on your credit as revoked and if you're not paying on the balance, they can still report as delinquent monthly, even if it's closed. So if you can transfer those especially, that is much better b/c the new company simply pays off that balance for you and you can start fresh.
Yes, if they sit with zero balance continuously, they can and often do. Close them out if you can otherwise, make small purchases each month (ex: fill your gas tank once a mon…th) and then send payment immediately thereafter thus avoiding finance charges. I would reccommend not waiting for the bill. Spend $20 and send $20. That actually increases your score. www.fico.com has more info
Amounts of debt in relation to available credit (the credit limit) is one of the factors used in establishing credit scores. Scoring software does not factor in the interest r…ates on the accounts. Here is an interesting website with general information about credit scores. http://www.moneycentral.msn.com/content/Banking/Yourcreditrating/P38053.asp
Yes but not significantly, unless it is a large amount, close to the maximum limit.
Answer . To successfully close an account, you must first have a zero balance on said account. Otherwise, you will still receive bills on that balance, which can and probab…ly will accrue late charges.
Will leaving zero balances on open credit card accounts help your credit score or should they be closed to help your score?
Answer . \nYes!! As long as they are at zero, you do not need to close them to help your score. Just don't open any new ones!!!
Answer . paying off no, closing the account yes.. 6,000 owed/10,000 credit limit =60% of credit used 2,000 owed/3,000 credit limit=66% of credit used=lower fico
To answer your question its possible! If you don't use the credit card it is possible that the credit card company will closed your account and for inactivity and this is bad…. Here is an excerpt from Phil Turner book The Credit Bible about credit cards and credit score.. "Do not close your credit cards accounts - it will affect your credit score. If you already have many credit cards, do not close the accounts because all the damage to your credit score has already been done. Just put the card up and don't use it accept spending small amounts to keep the card active. Credit card companies will close an account if it is inactive with 18 months. Also please note that you want deep credit roots (accounts over 5 years) this will definitely raise your score greatly. So you need old good accounts to get that high score.. Reduce the balance of your credit cards to 30% and below of your credit limit. If you have a credit card with a $5,000 limit, your balance reported to the credit bureau should be $1500 and under in order to have an excellent credit score. If you go over this amount it will affect what is called your " utilization rate .". Credit score formulas respond favorable to utilization 30% and below. It's a good idea to assess all of your credit cards and align them correctly with this formula. Use the form in the appendix. Please note: if you have an American Express card or card with no preset limits. You will be rated on the highest credit you have charged and the 30% rule still applies. Try using the card to increase your high credit limit by spending more with the card with cash you were already going to use and get that limit up to a ratio that will keep you within 30% of that high credit. This is why if you pay your credit off each month in full will not give you a great credit score.". Source: The Credit Bible, Everything you'll Ever Want To Know About Credit.
It can improve it since having a high percentage of credit limit can lower the score. Better to split the expenses and use about half of each cards limit and then pay each onl…ine ontime in full to improve the score. did u know that using a low percentage of credit limit can lower your score? Aim for 50% and pay it all on time.
ANSWER . Paying your debts in a timely manner doesn't give your credit score best results !!!! Crazy isn't it ! This is called your balance-to-limit-ratio and counts for 30…% of your credit score. In order to get best result you have to keep your balances at least 70% away from your limits.
If you close a credit card that has a balance on it will it hurt your credit score oppsed to waiting until the balance is paid in full?
Canceling cards usually does lower your FICO or credit score; if you have a balance on a card, pay it off or transfer the balance to a lower-interest card. Then take scissors …and cut up the old card (and any new ones they send you in the future). But then you don't need to actually cancel it.
If you are charging and paying it off each month then it helps. If you never use the card then it really doesn't do much either way.
Your overall credit history will determine how your credit is affected by having numerous credit cards. However, having an overabundance of credit cards with high balances or …credit availability can negatively impact risk scores if your credit history is questionable. .
I just got a new credit card. I dont have any credit cards other then this one. If I cancel this credit card that is new with zero balance will it affect my credit score?
Everything you do related to credit cards will affect your credit. My advice would be to leave the credit card account open and here's why; While just cancelling your credi…t card (with no balance) shouldn't hurt your credit, here are a couple things to think about; 1) your credit history makes up 15% of your credit score. No history means no points. 2) your payment history is makes up 35% of your credit score. I know you said you don't have a balance, but an occasional purchase and on-time payment will help your credit. The only thing that could hurt you if have too much available credit. If the card has a $50,000 limit, this could work against your. But I doubt it, seeing this is your first card.
Having the cards does not. Having large debts on them does.
Usually, yes - at least temporarily. But if your credit card balance is always zero, it tends to pull the score down over time. Best use of credit is to have two cards, and us…e them discreetly - charge something and pay it in full at the next billing. Occasionally carry a balance for a few months , then pay it in full. I have followed this approach for 40 years - and my FICO score is 787 - considered to be very high.