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Anonymous
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Credit Cards

Ok...Until recently, My credit has been way less than perfect. However, over the past year I have paid off all of my debt, have no balances on my credit cards and paid off any collection accounts. My score has been rising in that time, but fairly slow. +22 1 month but usually only +3-5 on average. I have a few credit cards, actually, more than I need and I pay bad rates on them obviously. The question I have is I am worried that if I cancel them my score will drop and whatever else this will affect, length of history (even though they were opened recently). Please help. I dont know if I should keep them and pay unnecessary fees, or cancel them and see my score drop Smiley Sad Also, how long would it drop my score for if I do cancel them? Thanks alot
Message 1 of 5
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Anonymous
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Cancelling those cards is probably bad... you still need...

Cancelling those cards is probably bad... you still need to have SOME credit history even though you say yours used to be poor.

What you can do now since it sounds like you've straightened things out is to start getting those interest rates down on your cards. They may only lower it 1-3% each time you call, but call every 3-4 months to have it lowered, and it probably wouldn't hurt to use them sparingly and pay them off to provide some more payment history. Sounds like you're on the right track! Best of luck.

Message Edited by Prngr44 on 03-07-2007 08:15 AM
Message 2 of 5
Established Member

Re: Credit Cards

You should keep your cards, but you should also see why you have fees.  I have about 7 different cc and no fees, and never have had any fees.  I would see if they will reduce the rate, but if they are paid off and you cut them up or put them away, the interest rate really does not matter.  Eventually they will notice that you are not using them and will offer you a better rate.  BUT, you should use your card, just for a small purchase, because your score will raise if you use them once in awhile; just pay it off asap too.  stay on the track you are on...it's so easy to get back into the hole. I know..been there, done that!!!  
Message 3 of 5
Anonymous
Not applicable

Re: Credit Cards

You need a few open accounts. Probably 3 will do. There are other options... Secured credit cards like from Wells Fargo and other Major Banks have a very small yearly fee. They will do the same thing so you can dump your high fee cards.
Message 4 of 5
RobertEG
Legendary Contributor

Re: Credit Cards

Just to offer another opinion, as is my wont to do.  It may not be bad to cancel those cards.  A lot depends on your overall length of credit history.  If you have a decent overall length of credti history (e.g., 7+ years), then dropping the blood sucking yearly fee cards that have very short history will be money in your pocket, with minimal effect on your length of history.  In fact, if they are just closed, and not deleted, they will still count in your history, without the yearly fee.
If they are also sub-prime cards, they may unimpress lendors looking at your full  CR.
 
Message 5 of 5
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