Of course you have to open an account or a credit cards for you to be able to get a credit score. I personally get a credit cards and check my three credit report from different bureaus.
Yes!! 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!!!
your bill payment history, the number of accounts you have and what kind, how long you have had your accounts open, and your recent credit activity.
It can..it depends on how many open credit accounts you have. But will only have minimal impact on credit score.
Simply closing a credit card should have no impact on your credit scores. However, consumers need to have open credit accounts (including 2 - 4 revolving accounts), that are paid as agreed, in order to have the highest possible score. Sooner or later the lack of this variety of credit accounts will be reflected in the point range. Rather than close this account, why not keep it open (the existing history will help your score), use it monthly for a small purchase, pay it off in full (and ON TIME). You will eventually need to open another revolving account and use it in the same manner for the highest possible scores. Be sure to time the opening of your next account for a time when your score can accommodate the deductions for the inquiry and "new account" status.
Closing accounts can actually lower your credit score. The reason is that a portion of the score is made up by considering the amount of credit available to you versus the amount you are actually using. For example, if you have a credit card with a $10,000 limit and a $5,000 balance you are using 50% of $10,000 available. If you pay off the $5,000 and leave the account open you are using 0% of $10,000 available and that helps your credit score. If you pay it off and close the account the available credit goes to zero which is worse for your score. Another component of your credit score is how long an account has been open, so you're better off having the same account for years rather than closing an older one and opening a new one. If you have too many accounts and really want to close some of them it's best to close the newest ones first and hang onto an account with a high credit limit and a good payment history. Closing any accounts will likely lower your score temporarily, but it will bounce back over time.
Open positive accounts with 0 balance is always good especially when they age, just leave it open.
Number of credit inquiries, number of open accounts, length those accounts have been open, payment history, percentage of available credit...there are more, but those are 5 big ones.
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 have too many open accounts and owes money, it does affect your credit score. your debt ratio is too high, and you will have difficult time applying for any kind of loans. when closing your accounts, and they are paid off. at first, it will lower your credit score, then will incrase following month or two. asian623 http://www.myspace.com/scionturboracing
Yes, closing old accounts negatively impacts your credit score because it shortens your length of history which makes up 15% of your credit score. Keep you old credit cards open, even if you don't use them.
You can never close an account on anything if you owe money. If you owe money on a credit card or a loan, you just can't close the account. Until that debt is paid it is open. All debts should be paid or it will give you a bad credit report. Remember, you are loaning money (even from credit cards) so it is your responsibility to pay this money back. "Closed by consumer" is not necessarily a negative notation and it can be done on revolving accounts when there is a balance remaining. However, categories which are considered to provide a consumer's credit score are length of time accounts have been open, and total amount of credit available. These two categories would be affected by closing your accounts and MIGHT cause a deduction in your score.
Maybe a lot, maybe none. Your credit scores are calculated based on ALL the information in your credit file at the time they are requested, not just these four accounts. Were all accounts paid as agreed? What were the dates the accounts were opened? What available credit did you have prior to closing 3 and how much available credit do you have now? Were the accounts delinquent? Do you have any other existing open accounts? What are the dates those were open? As you can see, the pieces of information fit together in a very complex way. One piece of data affects several others and can alter the whole equation. Once again, that is what a credit score is, a computation based on the accounts you have open.
Most of the things you can do are common sense. Review your credit score to start. The apply for a credit card this may need to be a secured card first. Stick to your limit. Do not close any cards you are not using. Keep the accounts open and last pay all your bills ontime.
700 is almost perfect. It would be nearly futile to try to improve it.
No credit reports only report debt not assets. Checking and saving account information does not appear on credit reports so will not affect your credit score.
It all depends on your income. It is good to have zero balance credit cards on your credit report. But if your potential debit to income ratio is too high, having too many credit cards could be a negative reflection on your credit score.
The three types of accounts on a consumer credit report are installment accounts, revolving credit and open accounts. Credit cards are considered revolving accounts.
I am a senior credit counselor, and actually closing your cards will hurt your score, the way your score is calculated is by how much available credit you have in comparison to how much debt you are currently carrying. If you have the cards with zero balance and available credit on them, then raises your available credit to total debt ratio, thus increasing your score. However, after you have purchased your home, you might want to consider closing the accounts because of the risk of identity theft. Or look into the new credit monitoring services, they are very inexpensive and usually offered through the credit bureaus. They will let you know if anyone checks your credit or if any changes have occurred. Actually, it can hurt your score. the FICO score looks at length of credit history (taking an average of all credit card accounts). If it is an older account, it would likely hurt your score. Closing a newer account would be best. If you go to MyFico.com, you can look at what factors into your score. They suggest to leave accounts open. This of course varies from person to person. If you have 10 credit card accounts and wish to close one of the newer ones or if you would like to consolidate some of the cards, it might be a good idea......Someone with fewer accounts and a shorter history should keep them open. Most important thing to remember.....everyone's credit score is calculated differently (i.e. based on the characteristics of their history). What is a good move for some, may not be for all.
There are many factors in credit scoring. Closing an account should not make it drop in score. Especially if it is a small amount of credit available.
Pay your bills on time, use credit cards but do it wisely so that your rate of usage is low, and have credit accounts open for long periods of time.
Yes, to improve your credit score, there are several things you can change/do differently in how you handle your payments. Paying on time, getting to your current payment, etc. Keeping your balance low and pay off debt instead of moving it around also helps. Also, don't open or close accounts unless you need to otherwise it affect your score.
Yes, having your credit pulled can lower your FICO score. Which is the score on your credit bureau report used in some cases to determine your credit worthiness. Each time you apply for a new account your credit is pulled whether or not you are approved. Closing accounts can also have a poor effect on your credit report.
Credit Cards and Your Credit Scoretrust me when i say, don't close your credit card accounts as soon as you pay them in full. definitely cut the cards in half and store in a safe place. do not contact the creditor to inform them that you are paying the account in full and closing it. by closing your accounts soon after paying them off, you end up "decreasing" your credit score with the three main Credit Bureaus (Equifax, TransUnion, Experian). i know this all too well because i just had this happen to me. in my opinion, it's not fair, but it's the way it is. i was informed by my local Credit Bureau (for future reference) not to cancel/close credit card accounts when I've paid them in full and no longer want to use them. i was told to let the accounts remain active/open until the credit card company contacts me to cancel them due to non-usage (this can occur within one or more years from the date of your final payment). by doing this, your credit scores will not be affected and that's a good thing to have happen these days.
== == There is no difference in credit score increase if you pay a close or open account off. Paying an account is always a good idea, and eventually it will increase your score.