cancelling credit cards--effect on credit score

[pattitimtoo]

Hello,

This is my first post.  I would like to cancel some low limit, high interest credit cards with yearly fees.  However, I know this can bring your credit score down.  Which is better, keep $0 balances and pay yearly fee (average $39) or cancel?  How long would this effect your credit score?  Thanks so much for the info.

Pattitimtoo

[Anonymous]

Canceling cards doesn't remove them from your credit report. It is still factored in for 10 years. The credit line goes bye bye no longer lowering your UTL. You need to calculate the loss of the lost credit line that was helping lower your UTL against other cards. If you pay your cards in full every month, probably no change. If you carry balances you may see a score drop.

To know exactly what will happen you would have to post all cards, limits, debts on revolving credit.

card 1, $400 linit / $0 debt
card 2, ..... (want to cancel this card)
card 2, ect..

We would need to see this information to give score predictions.

Message Edited by ilovepizza on 07-22-2007 09:11 AM

[Anonymous]

Call the CC company and ask them to waive the fees. Pay them down to nothing or almost nothing...and store them away.  I've had to do this as my oldest cards are CAP1 and all have fees. I called to cancel since I have other cards now...Yeah!!! And they waived all the annual fees, so I will keep them for another year. I will call again next year and get the fees waived again....

[Anonymous]

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ilovepizza wrote:
Canceling cards doesn't remove them from your credit report. It is still factored in for 10 years. The credit line goes bye bye no longer lowering your UTL. You need to calculate the loss of the lost credit line that was helping lower your UTL against other cards. If you pay your cards in full every month, probably no change. If you carry balances you may see a score drop.

To know exactly what will happen you would have to post all cards, limits, debts on revolving credit.

card 1, $400 linit / $0 debt
card 2, ..... (want to cancel this card)
card 2, ect..

We would need to see this information to give score predictions.

Message Edited by ilovepizza on 07-22-2007 09:11 AM

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We are in perfect agreement!!!

Rob