Bud asked:
Which is worse for your personal credit, Having a credit card with a large credit line but no balance or to cancel the card? I’m speaking credit score/report wise.
Anna
Which is worse for your personal credit, Having a credit card with a large credit line but no balance or to cancel the card? I’m speaking credit score/report wise.
Anna
#1 by T on November 16, 2010 - 11:42 am
Teresa
Cancelling the card. If you have no balance, why don’t you charge like $25 a month and pay it off each month? that can really boost your score over time!
#2 by Amber E on November 17, 2010 - 4:00 am
Jamie
probably closing the card
#3 by toecee on November 20, 2010 - 5:20 am
Phyllis
Definitely, having a credit card with a large credit limit! It proves: 1. Someone trusts you! 2. You don’t need the money!
#4 by Whitney M on November 21, 2010 - 2:08 am
Rita
I dont think either is bad for your credit. canceling it wont do that much damage b/c u just dont want it. Having it and no balance it good because you have it just use it once a month and pay it off and you will get great credit. keep it for emergencies.
#5 by dodothealmighty on November 22, 2010 - 2:43 am
Larry
Neither are bad, but neither are good.
You can have a $15,000 credit line, but no balance, and no one cares. What they look at, and judge your score by, is if you DO have a balance, and you DO make payments to it.
Ideally you want a couple hundred dollar balance, and make the minimum payment monthly, to raise your score as high as you can.
I’m saying like a $200 balance, and pay $25 a month – Don’t go crazy.
#6 by tudorjason (matt) on November 23, 2010 - 8:14 am
Dustin
Let’s just say that you described two ends of the credit spectrum. One of the best things for your score and report is having a credit card with a high limit and no balance, and one of the worse things for your score and report is to cancel the card. Having a high credit line, especially with no balance, means that you have a very high credit available. Canceling a card starts the clock to erasing your history. The amount of available credit and credit history are two major components to your score and report.
#7 by Cricket on November 26, 2010 - 3:28 pm
Marvin
Neither is bad, but if u have a credit card with a credit limit of say $5000 and u go for a loan for a car and it’s $20,000, the Bank considers the $5000 card as available credit u can possibly get and they figure that into weather u might get into trouble paying for it. Some Banks will ask u to close a card if u have too much credit available.
#8 by lucky s, on November 26, 2010 - 8:56 pm
Kristin
Visa.
#9 by annie w on November 26, 2010 - 10:25 pm
Lillie
The credit card with no balance has no effect on your credit. Closing the account has a negative impact on your credit score. Better to keep it open.
#10 by greg w on November 27, 2010 - 8:11 am
Nellie
You need to show that you are responsible with your card, by charging a small amount and paying it off shows you are that responsible person, you need to build your credit.