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AmericanRobster
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« on: August 20, 2007, 09:23:07 AM » |
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I have a couple of credit cards ( some are just store credit cards) that I don't use anymore and I'm looking to either close the account or cancel them. Which would be the better choice to maintain a good credit score? All of the credit cards have a zero balance.
The reason that I ask this question is that people have told me to just close the accounts because it looks better on your credit report. I have had people tell me that canceling cards can bring down your credit score.
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2006 Acrtic Cat TRV 500 4X4
1997 Chevy Silverado
2007 Dodge Ram 1500 Thunder Road
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MOTOCROSS MAVERICK
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« Reply #1 on: August 20, 2007, 09:27:24 AM » |
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if you are not going to use the cards and they will just sit there with a 0 balance i would close them. a credit card with a 0 balance on your report will lower your credit score. make sure you send a letter to the card company's to close out your card if you do.
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AmericanRobster
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« Reply #2 on: August 20, 2007, 09:35:45 AM » |
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if you are not going to use the cards and they will just sit there with a 0 balance i would close them. a credit card with a 0 balance on your report will lower your credit score. make sure you send a letter to the card company's to close out your card if you do.
Thanks alot! |
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2006 Acrtic Cat TRV 500 4X4
1997 Chevy Silverado
2007 Dodge Ram 1500 Thunder Road
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yfz122
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« Reply #3 on: August 20, 2007, 09:39:19 AM » |
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This boils down to a double edged sword. If you close all of the cards then you dont have revolving credit which is not good. If you leave the cards open then it can affect your debt to income, therefore lowering the score. Any card should not have over half the limit utilized on it at any time or that lowers your score. Equifax.com is a good place to get answers to all your questions. I would probably close most of them but leave one or two open.
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Next thing you know they'll take my thoughts away
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AmericanRobster
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« Reply #4 on: August 20, 2007, 09:51:52 AM » |
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This boils down to a double edged sword. If you close all of the cards then you dont have revolving credit which is not good. If you leave the cards open then it can affect your debt to income, therefore lowering the score. Any card should not have over half the limit utilized on it at any time or that lowers your score. Equifax.com is a good place to get answers to all your questions. I would probably close most of them but leave one or two open.
All I really want to close is my Capitol One Visa, Sears, Circuit City, and a Paypal Visa. I have another Visa and an American Express that I will keep open. Your're not kidding about a double edged sord. |
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2006 Acrtic Cat TRV 500 4X4
1997 Chevy Silverado
2007 Dodge Ram 1500 Thunder Road
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yfz122
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« Reply #5 on: August 20, 2007, 09:59:01 AM » |
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I have my own free in house financial advisor. If you have any other questions just ask.
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Next thing you know they'll take my thoughts away
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Bigscrb15
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« Reply #6 on: August 20, 2007, 10:12:45 AM » |
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Having a 0 balance will not lower your score. A lot of your score is based on available credit. If it shows you have $10k in credit card, but only $200 balance on them or $0 it will look good. If it shows you have a $9500 balance it will look bad. However, if you have 6-7 cards with a 0 balance you would be better off closing some of them...........
I can just imagine both Mtg_Man and SwampDonkey laughing at me giving credit advice, lol. I am just telling you the complete opposite of what I did, and what people told me to do to raise my score.
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"When once you have tasted flight, you will forever walk the earth with your eyes turned skyward, for there you have been, and there you will always long to return."
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JackL
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« Reply #7 on: August 20, 2007, 10:15:45 AM » |
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I wish I had you guys problems.
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The only rules that really matter are these: what a man can do and what a man can’t do.
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AmericanRobster
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« Reply #8 on: August 20, 2007, 10:19:53 AM » |
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Thanks again for the help guys! The reason that I want to get rid of some of this is that my girl friend and I are planning on buying our first house in the next year or two.
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2006 Acrtic Cat TRV 500 4X4
1997 Chevy Silverado
2007 Dodge Ram 1500 Thunder Road
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buzzardman
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« Reply #9 on: August 20, 2007, 11:00:58 AM » |
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Heck man, Just send them to me. I'l take them out and excersise them for ya.  Curcuit City has a couple of things I could use.  |
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TRX450R_Racer
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« Reply #10 on: August 20, 2007, 12:04:20 PM » |
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Having too many 0 cards won't hurt your credit, but it might keep you from getting a loan depending on your financial situatio. They can see you have the capability of over extending yourself with all those cards. I keep on Visa with a $30,000 limit.
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Member of South East Florida Trail Riders
Life's to short, wear a helmet.
Dress for the crash, not for the ride.
Ripped off by Brandon George.
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Chuck_Norris
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« Reply #11 on: August 20, 2007, 01:24:54 PM » |
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Close out the Capitol One as soon as you can. something you need to be aware of wi that you may have a great relation with Capital One and be very easily entertained with their commercials however where Captiol One grabbs you my the short hair is they dont report to the credit agencies there for effecting a good or bad credit score equally. You can read more about this and other crdit card related topics on www.clarkhoward.com This guys is the shiznay when it comes to money advise. I listen to him everyday on my way home from work. He states that keeping a zero balance on your cards presents you with available credit when closing these cards out it takes away the total dollar amount you have available for credit therefore affecting the Debt to Income ratio. |
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Bigscrb15
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« Reply #12 on: August 20, 2007, 01:56:58 PM » |
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My Capital One reports to credit.
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"When once you have tasted flight, you will forever walk the earth with your eyes turned skyward, for there you have been, and there you will always long to return."
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Da_Mtg_Man
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« Reply #13 on: August 20, 2007, 02:01:08 PM » |
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I agree with Chuck and Bigscrub but when you have a 0 balance and keep a balance at less than 50% of the high credit limit then it shows you are responsible. Keep this in mind as well. If you already have a high credit score (typically 700 or above) then a Mtg Lender could care a less how many 0 balance cards you have. They will however care if you have several revolving (credit cards) accounts with high balances.
Don't hesitate to shoot me a PM with any questions that you have Rob (I'm guessing thats your name)...lol...
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FLORIDA MUD RIDER
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AmericanRobster
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« Reply #14 on: August 20, 2007, 02:24:09 PM » |
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I agree with Chuck and Bigscrub but when you have a 0 balance and keep a balance at less than 50% of the high credit limit then it shows you are responsible. Keep this in mind as well. If you already have a high credit score (typically 700 or above) then a Mtg Lender could care a less how many 0 balance cards you have. They will however care if you have several revolving (credit cards) accounts with high balances.
Don't hesitate to shoot me a PM with any questions that you have Rob (I'm guessing thats your name)...lol...
Thanks alot guys for all the help. Yes my name is Rob. This seems to be my plan so far. I just want to have my Visa and my American Express. |
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2006 Acrtic Cat TRV 500 4X4
1997 Chevy Silverado
2007 Dodge Ram 1500 Thunder Road
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Da_Mtg_Man
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« Reply #15 on: August 20, 2007, 05:04:37 PM » |
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By the way, Capitol One is closing their wholesale mortgage division and they're also cutiing 1900 jobs.....I just saw this on FNN (fox news network)
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FLORIDA MUD RIDER
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AmericanRobster
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« Reply #16 on: August 20, 2007, 05:14:14 PM » |
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I will never use Wamu or capitol one again  . Thier customer service really sucks  |
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2006 Acrtic Cat TRV 500 4X4
1997 Chevy Silverado
2007 Dodge Ram 1500 Thunder Road
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AmericanRobster
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« Reply #17 on: August 20, 2007, 05:19:10 PM » |
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Next year my girlfriend and I will be looking to purchase our first home. I plan on using my bank to take a first time home buyers program and I can get a better rate out of there with my girlfriend being a nurse and all. They have a program for anyone who works in the community, fire fighters, police, nurses, etc
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2006 Acrtic Cat TRV 500 4X4
1997 Chevy Silverado
2007 Dodge Ram 1500 Thunder Road
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Bigscrb15
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« Reply #18 on: August 20, 2007, 06:07:55 PM » |
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Next year my girlfriend and I will be looking to purchase our first home. I plan on using my bank to take a first time home buyers program and I can get a better rate out of there with my girlfriend being a nurse and all. They have a program for anyone who works in the community, fire fighters, police, nurses, etc
Make sure you give Da_Mtg_Man a call. He was getting us approved for rates that everyone else laughed at me when I asked for. |
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"When once you have tasted flight, you will forever walk the earth with your eyes turned skyward, for there you have been, and there you will always long to return."
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AmericanRobster
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« Reply #19 on: August 20, 2007, 09:09:41 PM » |
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Next year my girlfriend and I will be looking to purchase our first home. I plan on using my bank to take a first time home buyers program and I can get a better rate out of there with my girlfriend being a nurse and all. They have a program for anyone who works in the community, fire fighters, police, nurses, etc
Make sure you give Da_Mtg_Man a call. He was getting us approved for rates that everyone else laughed at me when I asked for. Really? will do thanks for the help. |
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2006 Acrtic Cat TRV 500 4X4
1997 Chevy Silverado
2007 Dodge Ram 1500 Thunder Road
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Bigscrb15
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« Reply #20 on: August 20, 2007, 09:51:23 PM » |
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Next year my girlfriend and I will be looking to purchase our first home. I plan on using my bank to take a first time home buyers program and I can get a better rate out of there with my girlfriend being a nurse and all. They have a program for anyone who works in the community, fire fighters, police, nurses, etc
Make sure you give Da_Mtg_Man a call. He was getting us approved for rates that everyone else laughed at me when I asked for. Really? will do thanks for the help. And it wasn't any of that Interest Only, Adjustable Rate crap. |
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"When once you have tasted flight, you will forever walk the earth with your eyes turned skyward, for there you have been, and there you will always long to return."
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AmericanRobster
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« Reply #21 on: August 20, 2007, 09:58:28 PM » |
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Sweet! I want to get the lowest rate I possibly can and have a fixed rate.
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2006 Acrtic Cat TRV 500 4X4
1997 Chevy Silverado
2007 Dodge Ram 1500 Thunder Road
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Da_Mtg_Man
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« Reply #22 on: August 20, 2007, 10:33:27 PM » |
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What Bigscrub didn't know is that he was bringing an extra 10k to the table..... For me that is...... Here's the deal, Banks have good rates but their closing costs are usually a little bit cheaper (they'll eat some costs because they will make their money back off the interest) A Mortgage broker can usually get you around ..325 +/- better on the rate because of the amount of business that they send to their investor. Sometiimes a broker will have somewhere $500 to $1000 more in closing costs but on a 200k home that 3/8's difference on the interest rate will be recouped in about 2 yrs so you have 30 yrs of saving that $50 a month. Do the math, $1000 more in closing costs but saving $50 for 28 yrs (336 mths) = $16,800 savings. |
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FLORIDA MUD RIDER
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AmericanRobster
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« Reply #23 on: August 20, 2007, 10:39:22 PM » |
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I will consider that. We plan on purchasing next year sometime in the Fall. I hope that this buyers market can hold out until then.
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2006 Acrtic Cat TRV 500 4X4
1997 Chevy Silverado
2007 Dodge Ram 1500 Thunder Road
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Da_Mtg_Man
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« Reply #24 on: August 20, 2007, 10:43:30 PM » |
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I would love to handle your mortgage needs and if you need I have a realtor in the family as well. Whether I do your loan or not I will gladly walk you through it all so just hit me up with any questions whatsoever.
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FLORIDA MUD RIDER
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