topic Re: It will mostly depend on the age of the accounts. If you... in General Credit Topics

Too Many Credit Cards?

Anonymous — Sun, 11 Mar 2007 23:45:16 GMT

I currently have 7 credit cards with 0 balances. I got them in order to improve my credit score. Does anyone know if I close the majority of them with 0 balances will this improve my credit credit score or hurt it? Any help or advice is appreciated. Thanks!

It will mostly depend on the age of the accounts. If you...

Anonymous — Mon, 12 Mar 2007 11:47:53 GMT

It will mostly depend on the age of the accounts. If you credit is fairly young it may take up to a year for them to really positively affect your score. NEver take on new cards just to improve your score. 3 long term cards with low utilization will stand you in better stead than 7 cards short-term with 0 utilization.

Too Many Credit Cards?

Anonymous — Tue, 13 Mar 2007 03:33:58 GMT

So...do you think it's best to eliminate all of them except for the 3 that are long term, because the rest are 3-6 mths. old.? Do you think removing those 4 would help the score? Thanks so much for your info! :-) Kim

Are you paying yearly fees on these cards? If not... why...

Anonymous — Tue, 13 Mar 2007 05:25:27 GMT

Are you paying yearly fees on these cards? If not... why close them? Just don't use them, or use them every couple of months just to keep activity on them - but pay them off right away. If they are all the same age, then closing some of them won't help at all.

I have about 9 credit cards now, two which I am going to...

Cory — Thu, 15 Mar 2007 21:41:12 GMT

I have about 9 credit cards now, two which I am going to close because of the annual fee. Three of the credit cards I have are old cards which is all the credit history I have.

I openned these cards in 1999. The other four cards I recently opened. It probaly wouldn't hurt to close them now.

But, it is strange how I am getting all of these credit card offers in the mail now, not cards like AMEX, DISCOVER or CHASE. All of the high interest rates and annual fee cards.

Cory

Message Edited by Cory on 03-15-2007 02:40 PM

Message Edited by Cory on 03-15-2007 02:41 PM

Run do not walk

Anonymous — Thu, 15 Mar 2007 21:46:56 GMT

Cory,

Run do not walk away from these offers with fees. The only thing you need do is keep your current cards current and your utilization low, barring anything else negative on your report and near-prime offers will start pouring in as well. Shortly thereafter, in credit terms, primes will follow.

If you accept these offers and later get better offers you will have a choice to keep paying fees for nothing or closing the accounts and continuosly reaging your report. Trust me I threw away more First Premies and merricks than we take garbae out ofthe house opn a weekly basis, patience, as they say, is a virtue.

Message Edited by Brammy on 03-15-2007 05:46 PM

I personally believe that anytime you open/close/apply or...

Anonymous — Fri, 16 Mar 2007 00:19:39 GMT

I personally believe that anytime you open/close/apply or do anything else you affect your score (but Barry would know better).

I agree with the other posts - keep 3 or 4 of the best (oldest?) and ditch the rest. I try to keep only 4 major cards (with different banks if possible - although BofA just bought MBNA, so good luck with that one as often as banks gobble each other).

Thanks Brammy, I am not really concerned about these...

Cory — Fri, 16 Mar 2007 14:52:23 GMT

Thanks Brammy,

I am not really concerned about these offer much, however I do get excited to see them come. I guess it's because I was so desperate after the mess with my family that happen in 2002.

I never thought I would have to deal with a hard hit like this in my life, but I'm glad that this happen to me because I have learned the hard way not to lend out money or use my credit for other people who can not manage their own credit.

Brammy, I have a question for you? Right now I have 4 credit cards, One is First Premier, Credit One Bank, HSBC/ORCHARD BANK, Applied Card Bank. Which ones or one would you recommend that I close and I will geniunely take your advice.

All the Credit Cards have that six dollar a month fee except for ACB. ACB's account maintanance fee is $10.95 a month, which to me is ridiculous.

My own recommendations are to close First Premier, Credit One Bank and Applied Card Bank, after I pay them all off. HSBC is a good card, with only 8.90% variable interest rate and six dollars a month. COB is 23.99%, ACB is 23.99%.

And the Credit limits are not over $500.00, sounds crazy to you?

Thanks,

Cory

Message Edited by Cory on 03-16-2007 07:52 AM

CLOSING CARS

Anonymous — Sat, 17 Mar 2007 20:06:24 GMT

THEY SAY NEVER CLOSE THE ACCOUNT JUST DONT USED THEM PUT THEM IN SAFE DEPOST BOX FOR EMERGENCY OR JUST CUT THEM UP

I have 23 open credit card accounts, and I know people wi...

Anonymous — Sun, 18 Mar 2007 06:26:59 GMT

I have 23 open credit card accounts, and I know people with many more than that. The number of accounts isn't what hurts, it's how many there's balances on, the balances as a percentage of your total limit, and, of course, age.

I wouldn't keep open an account you're not using if there were an annual fee. However, if there is no fee, I don't see a reason to close it. Just use it every 2-3 months to keep it active and reporting (and pay it in full).

Thank you so much guys. But the cards with the annual fee...

Cory — Mon, 19 Mar 2007 13:46:20 GMT

Thank you so much guys. But the cards with the annual fee I will close them.

Cory

Re: It will mostly depend on the age of the accounts. If you...

Anonymous — Sun, 13 May 2007 16:46:55 GMT

If you open new credit cards, will they intially lower your credit score before they affect them positively...assuming that you pay them off each time you use them and you use them sparingly?

Re: It will mostly depend on the age of the accounts. If you...

Anonymous — Sun, 13 May 2007 18:25:54 GMT

I'll offer a different viewpoint to the blanket statement that opening a new tradeline will initially lower your score. Every person is different and it will depend on many other factors. I opened a BofA Platinum when my only other tradeline was a Cap One auto loan. Everything else had been closed, paid, settled, and/or negotiated as part of a 4 year effort to clean house, so I was seriously lacking tradelines. My score went up over 20 points across the board for adding a brand new account. It helped that BofA threw in a month of paymeny history on the first reporting, when I had only had the card a few weeks. I love this board but there is a lot of "doing this will equal this result", and much of it is in opposition to my own experience. Not that anyone is wrong. The reporting formula doesn't always act predictably.

Re: It will mostly depend on the age of the accounts. If you...

Anonymous — Sun, 13 May 2007 18:48:01 GMT

I don't know about how many accounts you should have open with 0 balances, but I do know that maintaining a zero balance isn't necessarily good. You need to show you can manage credit wisely. Unfortunately, that means maintaining LOW balances. I've been told keeping your util on the CC's to under 10% is great. Under 7% is better.

Sadly, that means on a $300 limit card, you should keep a revolving balance of around $20 or so. Charge, pay, charge, pay.... it's a merry-go-round!

Re: It will mostly depend on the age of the accounts. If you...

Anonymous — Sun, 13 May 2007 18:50:02 GMT

I just opened a few new accounts 2 of which are reporting with a bonus month payments, I had basically no change in FICO scores. I expected a drop with the additional inquiries but nothing, so i came to the conclusion that payment history offset any other activity. Now as far as the Fako scores my EQ score went up 7 points today after a paid collection posted, FICO stayed the same. Again i thought i would take a hit for paying a collection.