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firesoul453
Posts: 150
Registered: ‎08-24-2012
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Does it hurt your score to have a that i rarely use? Might it lower my chances of getting a loan?

Just wondering. I have one credit card that's more than double the limit of my other credit cards and I only used it like once a month? Would it be better for me to close it? In all honest I only got it because I wanted to buy something large interest free (it has a year interest free). I also take advantage of the concierge service included with it, even though I don't really use it.

 

I am not worried about them closing it, because I do use it every month for something small. And at first I figured it would be a good thing, as it would push my credit usage down, but wouldn't it hut me having a major source of credit that isn't used? I mean don't banks check that sort of thing? I've heard of plenty of people getting denied for having to much credit.  (Like will it hurt my chances of getting a car loan in the future? Or am I better off keeping it?  )

 

 

Thanks!

My ultimate credit wish,
a JP Morgan Palladium card
Valued Contributor
dodfire
Posts: 1,453
Registered: ‎04-14-2012
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Re: Does it hurt your score to have a that i rarely use? Might it lower my chances of getting a loan

The only thing it is really going to hurt is your UTL.

You could tell us more about what you have in your report....

How many cards?

Total Credit limit?

Income?

Usually it takes A LOT to have too much credit, so I would not worry about that.

 

*8/10/13
Super Contributor
enharu
Posts: 7,132
Registered: ‎02-27-2013
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Re: Does it hurt your score to have a that i rarely use? Might it lower my chances of getting a loan


firesoul453 wrote:

Just wondering. I have one credit card that's more than double the limit of my other credit cards and I only used it like once a month? No problems with that. Would it be better for me to close it? No, unless it has annual / monthly fees. In all honest I only got it because I wanted to buy something large interest free (it has a year interest free). I also take advantage of the concierge service included with it, even though I don't really use it. 

 

I am not worried about them closing it, because I do use it every month for something small. And at first I figured it would be a good thing, as it would push my credit usage down, but wouldn't it hut me having a major source of credit that isn't used? Not at all, if there's no fees. I mean don't banks check that sort of thing? they don't really care if you have been using xxx card each month. Just make sure it's not closed to inactivity, if you want that card. I've heard of plenty of people getting denied for having to much credit.  (Like will it hurt my chances of getting a car loan in the future? Or am I better off keeping it?  ) this depends on your income. some banks may feel that you have way too much credit limit for your income level. if that's the reason that's stopping you from getting qualified for a new card or loan, offer to close some cards. that'll usually fix the problem. for now, if the card has no fees, keep it.

 

 

Thanks!


replied above in red!

 

JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
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09Lexie
Posts: 26,589
Registered: ‎09-13-2012
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Re: Does it hurt your score to have a that i rarely use? Might it lower my chances of getting a loan

Contributor
firesoul453
Posts: 150
Registered: ‎08-24-2012
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Re: Does it hurt your score to have a that i rarely use? Might it lower my chances of getting a loan


enharu wrote:

firesoul453 wrote:

Just wondering. I have one credit card that's more than double the limit of my other credit cards and I only used it like once a month? No problems with that. Would it be better for me to close it? No, unless it has annual / monthly fees. In all honest I only got it because I wanted to buy something large interest free (it has a year interest free). I also take advantage of the concierge service included with it, even though I don't really use it. 

 

I am not worried about them closing it, because I do use it every month for something small. And at first I figured it would be a good thing, as it would push my credit usage down, but wouldn't it hut me having a major source of credit that isn't used? Not at all, if there's no fees. I mean don't banks check that sort of thing? they don't really care if you have been using xxx card each month. Just make sure it's not closed to inactivity, if you want that card. I've heard of plenty of people getting denied for having to much credit.  (Like will it hurt my chances of getting a car loan in the future? Or am I better off keeping it?  ) this depends on your income. some banks may feel that you have way too much credit limit for your income level. if that's the reason that's stopping you from getting qualified for a new card or loan, offer to close some cards. that'll usually fix the problem. for now, if the card has no fees, keep it.

 

 

Thanks!


replied above in red!

 


Woa fast reply!

 

In like a year and a half or so I will most likely try to get a loan for a new car.

My credit limit is like 120% or so of my yearly income. Mostly becaue I majorly cut back my hours because of school and partly because I went a little overboard with a credit spree lol. You cured my fears. If it becomes a problem I will just offer to cancel if it becomes a problem.

 

Thanks so much everyone.

My ultimate credit wish,
a JP Morgan Palladium card
Contributor
mojobones89
Posts: 252
Registered: ‎01-21-2013
0

Re: Does it hurt your score to have a that i rarely use? Might it lower my chances of getting a loan

i have many cc's and out of them all,i only use 2,the rest have been eating dust bunnys and get fat off of that AAOA

my oldest accounts i have not used them for years,and they are still ALL OPENED.

doesnt hurt my credit,does affect it,the only effect is a larger AAOA.

anybody,correct me if im wrong,i think if you close your accounts they show up on your report for 10 years,and depending how old those accounts are,it will vary how much it will hurt your score. I,e closing a RECENT account than an OLD account may have little or no affect for a few months,opposed to vice versa where you close an OLD account instead of the RECENT accounts,it will hurt you big time on that AAOA?

im pretty sure that you will lose those accounts CREDIT in your TOTAL OVER ALLCREDIT LIMIT.

Contributor
mojobones89
Posts: 252
Registered: ‎01-21-2013
0

Re: Does it hurt your score to have a that i rarely use? Might it lower my chances of getting a loan


mojobones89 wrote:

i have many cc's and out of them all,i only use 2,the rest have been eating dust bunnys and get fat off of that AAOA

my oldest accounts i have not used them for years,and they are still ALL OPENED.

doesnt hurt my credit,does affect it,the only effect is a larger AAOA.

anybody,correct me if im wrong,i think if you close your accounts they show up on your report for 10 years,and depending how old those accounts are,it will vary how much it will hurt your score. I,e closing a RECENT account than an OLD account may have little or no affect for a few months,opposed to vice versa where you close an OLD account instead of the RECENT accounts,it will hurt you big time on that AAOA?

im pretty sure that you will lose those accounts CREDIT in your TOTAL OVER ALLCREDIT LIMIT.


forgot to add,IMO....KEEP IT OPEN TILL OTHERWISE CLOSED,get those extra months of AAOA till it lasts.

Super Contributor
enharu
Posts: 7,132
Registered: ‎02-27-2013
0

Re: Does it hurt your score to have a that i rarely use? Might it lower my chances of getting a loan


mojobones89 wrote:

i have many cc's and out of them all,i only use 2,the rest have been eating dust bunnys and get fat off of that AAOA

my oldest accounts i have not used them for years,and they are still ALL OPENED.

doesnt hurt my credit,does affect it,the only effect is a larger AAOA.

anybody,correct me if im wrong,i think if you close your accounts they show up on your report for 10 years,and depending how old those accounts are,it will vary how much it will hurt your score. I,e closing a RECENT account than an OLD account may have little or no affect for a few months,opposed to vice versa where you close an OLD account instead of the RECENT accounts,it will hurt you big time on that AAOA?

im pretty sure that you will lose those accounts CREDIT in your TOTAL OVER ALLCREDIT LIMIT.


if you close your account, it can show up for up to 10 years, but that depends on whether the lender wants to keep updating it, and it also depends on the CRAs. Transunion and Equifax have been pretty digilent (at times) about taking off closed accounts from credit reports. Some lenders decide to stop reporting after 2-3 years, some right away, some report for the full 10 years, so YMMV. It may fall off right away, or it may not. If it falls off right away and it's an old account, your scores might dip a little, or a lot, depending on its effect on your AAoA and how old your 2nd oldest account is.

 

 

JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Valued Contributor
boomhower
Posts: 1,863
Registered: ‎09-20-2011
0

Re: Does it hurt your score to have a that i rarely use? Might it lower my chances of getting a loan

No need to close it at all.  What your doing is exactly what you need to do to keep your score climing.  Just keep doing what your doing.  Use it and PIF every month.  Very very few lenders will decline due to have to much credit.  I've never heard of that being a reason for decline on a car loan, just additional credit cards and only from extremely conservative lenders. 


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