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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.

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โˆ™ 2006-09-08 05:47:45
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Q: 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?
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Related Questions

How do you cancel your credit card?

call the company/ bank

Does closing a cedit card by the consumer affect their credit negatively?

Closing an account will affect your credit score and decrease your score.

If you default on your pay day loan will that affect your credit?

Yes, if you default on any loan it will affect your credit rating negatively.

Do subsidized loans affect credit?

Subsidized loans will affect your credit score negatively if you are not paying them. If you are paying them, they will have a positive effect on your score.

How does personal loans credit inquiries affect your credit score?

All inquiries in excess of 3 in one year negatively affect your credit. The more you do it the lower it will get.

How does working with a credit card settlement company affect your credit score?

It is recommended that you pay an old debt through the original creditor. Credit settlement companies are out to make a profit and they will negotiate terms that are not true. Also, it is possible that you can pay the settlement company but still owe the original creditor. It has happened to me. The negative information reported by the credit card settlement company will affect your score negatively.

Will a chargeback effect fica score?

If you have a chargeback, that is a credit to your account. This will not affect your credit score negatively or positively.

Does trading in a car affect your credit?

Trading in a car does not affect your credit unless you sign a new car loan and get a new car. This may negatively or positively effect your credit.

If the amount Kelsey owes is close to her credit limit it will negatively affect her credit score true or false?


Can an auto insurance company cancel your policy after reviewing your credit report?

They usually can't cancel a policy due to credit. The rates can go WAY up though!

Can you charge on a credit card that is in your bankruptcy AFTER actually filing bankruptcy?

"Whether a debtor keeps credit cards after filing bankruptcy is up to the credit card company. If you are discharging a credit card they will cancel the card unless you reaffirm the debt. Even if you have a zero balance the credit card company might cancel the card."

Can a car repo prevent from buying a house?

Any repossession negatively affects your credit rating. Negatively affected credit ratings will affect your ability to obtain loans, typically in a negative way.

Does it hurt your credit if you cancel the card after it opens?

Yes, it will have a negative affect on a credit report, usually temporary perhaps 90 days.

Does a company credit when the company is the accounts payable and the card was issued by the company for business expenses affect your personal credit score?

If none of your legal information is attached to the card (SSN for example) then the answer is No it will not affect your presonal credit score.

Do instant loans negatively affect credit?

Credit scores are effected by many factors. One of the factors is how much debt you have in comparison to your income ratio. A high volume of debt, perhaps from an instant loan, when you have a low income, will negatively impact your credit.

Does eviction affect your credit negatively?

An eviction lawsuit is public record and a judgment evicting you from a rental property will be a negative entry on your credit report.

Does closing a credit card account which was always paid on time harm your credit score?

Strangely enough, yes it does negatively but temporarily affect ones credit score.

What do you do if you lost your credit card?

Call the credit card company and tell them it is stolen. They will probably cancel your card and issue you with a new one.

Will an employee's bad credit affect whether they can get a company credit card?


Can you give me a sentence for the word cancel?

Can I CANCEL this credit card

Will multiple credit card inquiries affect the chances of getting a home equity loan?

Multiple inquiries will not affect your chances, the only way it would affect you getting a home loan is if your credit score was impacted. Be careful with applying for credit cards, the inquires affect your score negatively.

Will a private student loan that is currently deferred negatively affect your credit score?

It will appear as an obligation and as such limit the amount that will be considered for total monthly payment. No I don't think it will affect your your credit score.

How do you cancel an existing credit card?

Call up the Credit Card company and tell them to clsoe the account, you will be sent a letter confirming that as well.

Do you still have to pay a debt that shows its been settled on your credit report?

Call your credit card company and inquire. If you can not get through, cancel the card.

Would taking a loan from your current 401K account to pay off your credit card affect your credit history?

No. Loans from 401(k) accounts are not usually reported to credit reporting agencies, so it should not affect your credit history favorably, or negatively.