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If have paid a credit card balance of 1200 dollars and no longer use the card do you have to cancel it or let it go?
Wiki User
∙ 8y ago
That's completely up to the person. However closing an account will have a small effect on your CR.
Wiki User
∙ 8y ago
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Should one cancel a credit card after paying it off and how does this reflect on their FICO score?
Just to add a little to the below answer; if the credit card in question is a fairly new credit card say opened in the last 12 mos or so, then I would advise to close it. If the account has been opened for a longer period of time, leave it open with a zero balance. Your credit score is not only derived by the balance vs the limit but also the length of time the account has been open and in good standing. Cancelling cards may not always be a good idea. Your credit score is based on several things, one of which is your available credit to current debt ratio. If you've paid of a card, it's probably a good idea to not make more charges on it, keeping it available as credit. That will show that, even though you have available credit, you're responsible enough not to use it all. It is better to cancel a card with a 0 balance than to close an account with a balance.
When a credit card company raises your rate and you opt to cancel the card to stay at the lower rate does that negatively affect your credit rating?
It is always best NOT to cancel a credit card unless your debt to income ratio is too high. As long as you have no annual fees or any other "junk" fees with the credit card in question it is best to take your balance to $0 and put the credit card away in a safe deposit box or somewhere will it will not be stolen. The longer you have a credit card in good standing ( no late fees payments on time etc) it helps your credit. The credit card company will usually raise your credit limit which will help other low intrest cards also raise your limit when they review your credit history. In short YES canceling your card Can HURT YOUR CREDIT.
When you transfer a debt from one credit card to another one with a lower interest rate is it best to cancel the old card does it appear as a debt on new credit report even if it is paid off?
If card is paid off, there is no longer a debt existing on that account. The debt is a 0 balance. Keep the account open anyway , even though you do not use it! This helps your credit score stay up. If you close an account that you no longer use, your credit score drops a bit & loses some points. So no, do not close an account even when it is paid off. It reflects good on your credit report. If you have to, cut the card in half, to keep yourself from shopping with that card.
What is the credit score impact of transferring your entire balance from a credit card to a new lower rate card account while keeping your old accound open with zero balance?
I've heard that if you keep your old account open (even with zero balance) can actually improve your credit score. The longer you keep credit card accounts open with out generating massive debt the more likely you'll get a better credit score. Depending on how large your balance is will really determine rather your credit score will get hurt or not (some will argue that it will not change your credit score but the answer varies from one opinion to the other) . You will be charged a fee by your previous credit card company though. Do not close your previous credit card account if you wish to improve your credit score, for some credit score companies may use it as a penalty against you (e.g. FICO).
If you eliminate all credit card debts will this increase your credit score immediately?
No, it will not. You should have a mix of different types of credit, such as credit card, mortgage, car loan. Credit card debt should be kept at least at 50% of your balance. 30% is best. An example is keeping a $3,000 balance on a card with a $10,000 credit limit. It is helpful to have a longer history of paying on debts, and it is good to have a minimum of 3 credit cards, all under the 30% limit. When you check your FICO score, look to see if the credit accounts that are open list the credit limit. If not you want to report that limit to the credit scoring company (Experian, Equifax, Transunion). It sounds crazy, but eliminating your debt and just paying the total balance in full each month will not increase your credit score. The credit scoring companies want to see a variety of debt, as well as management of that debt, i.e. reasonable balances, and regular payment on that debt.
Can you close a credit card account if there's a balance on the account or must you pay the balance in full?
Yes, you can cancel the card even if there is a balance remaining on it. You contact the credit card company and request the card be cancelled. You will no longer be able to use the card, but you still pay the balance, either in monthly payments or in a lump sum. But you do not have to pay the balance in full when you cancel the card.
How do you cancel your Khols credit card?
This applies to any credit card. You can do one of two things. 1) To CLOSE an account, you may still have a balance that you need to keep paying on but you can no longer charge on it. The advantage is that you prevent yourself from spending more. The disadvantage is that you can no longer negotiate lowering the interest rate if the account is no longer open. If you have a balance, it is to your best interest the stop spending, negotiate a lower rate, and pay it off as quickly as possible. 2) To CANCEL your card, you can not have a balance on it. The best thing to do is call the company to cancel, and then follow it up with a written request. Also ask them for a cancellation confirmation. Option 3, if you are trying to get rid of your debt, is to transfer your Kohl's balance to a Visa or Mastercard with a lower rate. Then cancel the Kohl card and DO NOT charge anything else on the MC or Visa. Just pay it down and close that when it is paid off.
Should one cancel a credit card after paying it off and how does this reflect on their FICO score?
Just to add a little to the below answer; if the credit card in question is a fairly new credit card say opened in the last 12 mos or so, then I would advise to close it. If the account has been opened for a longer period of time, leave it open with a zero balance. Your credit score is not only derived by the balance vs the limit but also the length of time the account has been open and in good standing. Cancelling cards may not always be a good idea. Your credit score is based on several things, one of which is your available credit to current debt ratio. If you've paid of a card, it's probably a good idea to not make more charges on it, keeping it available as credit. That will show that, even though you have available credit, you're responsible enough not to use it all. It is better to cancel a card with a 0 balance than to close an account with a balance.
When a credit card company raises your rate and you opt to cancel the card to stay at the lower rate does that negatively affect your credit rating?
It is always best NOT to cancel a credit card unless your debt to income ratio is too high. As long as you have no annual fees or any other "junk" fees with the credit card in question it is best to take your balance to $0 and put the credit card away in a safe deposit box or somewhere will it will not be stolen. The longer you have a credit card in good standing ( no late fees payments on time etc) it helps your credit. The credit card company will usually raise your credit limit which will help other low intrest cards also raise your limit when they review your credit history. In short YES canceling your card Can HURT YOUR CREDIT.
If you stop paying on a collection account that no longer shows on your credit report can the collection company report the unpaid balance to the credit bureaus?
Yes they can and they probably will. if you are concerned about your credit profile, it would not be a good idea to stop paying.
When you transfer a debt from one credit card to another one with a lower interest rate is it best to cancel the old card does it appear as a debt on new credit report even if it is paid off?
If card is paid off, there is no longer a debt existing on that account. The debt is a 0 balance. Keep the account open anyway , even though you do not use it! This helps your credit score stay up. If you close an account that you no longer use, your credit score drops a bit & loses some points. So no, do not close an account even when it is paid off. It reflects good on your credit report. If you have to, cut the card in half, to keep yourself from shopping with that card.
How can someone shut down or disconnect their visa credit card?
To shut down or disconnect a visa credit card someone can go to, or call, their bank. Usually people can just go to the bank where they first registered the card to cancel it when they no longer want it.
What is the credit score impact of transferring your entire balance from a credit card to a new lower rate card account while keeping your old accound open with zero balance?
I've heard that if you keep your old account open (even with zero balance) can actually improve your credit score. The longer you keep credit card accounts open with out generating massive debt the more likely you'll get a better credit score. Depending on how large your balance is will really determine rather your credit score will get hurt or not (some will argue that it will not change your credit score but the answer varies from one opinion to the other) . You will be charged a fee by your previous credit card company though. Do not close your previous credit card account if you wish to improve your credit score, for some credit score companies may use it as a penalty against you (e.g. FICO).
How do you cancel your hotmail address you no longer have a computer at home?
After 90 days of inactivity, hotmail will cancel your email account
What do you do with a credit balance in accounts receivable after a time frame of 2 years?
You can send it to collections or write it off. Depends on the amount- they are probably no longer a customer i would assume.
If you have two years left on a leased vehicle but you can no longer afford the payments can you return the car to the dealer?
You will have to pay any balance due after the car is sold and then it ruins your credit.
When do you cancel your homeowners insurance?
Generally one would cancel a home insurance policy whenever one decides they no longer need it, such as sold the home or the home no longer exists, etc.
