Jamaal E asked:
I have a couple of cards: Capital One, Bank of America, Best Buy Store Card, Best Buy Mastercard, and a Guitar Center Card. Of them all after I pay the balance, I’d like to get rid of my Capital One card (hate it and at 22.80% interest) and the Best Buy MasterCard. All the others I wish to keep. Will this have a huge impact on my credit score ? I’ve had my capital one card for nearly 2 years now and I’ve have my Best Buy Master Card for about 3 months and I’m almost done with payments on the Best Buy card.
I have a couple of cards: Capital One, Bank of America, Best Buy Store Card, Best Buy Mastercard, and a Guitar Center Card. Of them all after I pay the balance, I’d like to get rid of my Capital One card (hate it and at 22.80% interest) and the Best Buy MasterCard. All the others I wish to keep. Will this have a huge impact on my credit score ? I’ve had my capital one card for nearly 2 years now and I’ve have my Best Buy Master Card for about 3 months and I’m almost done with payments on the Best Buy card.
{ 5 comments… read them below or add one }
Don’t cancel the cards. Just pay em off and cut em up. Closing accounts does negatively affect your credit.
Closing accounts positively affects your credit score. The more cards you have, the more your potential debt. Even if you have a zero balance on a card, it still counts as potential debt in the amount of the card’s limit.
it will impact your score because your amount of available credit will be reduced. and for the cards you do keep and use, your ratio of debt to credit will be higher because you have less available. just keep the cards and dont use them. the longer your credit history the better. i wouldnt suggest getting any more though, just increasing your credit limit on the ones you have. as long as you pay the balance every month, the interest rate wont affect you anyway.
Yes, it will even though it’s stupid, it’s true. I closed several accounts and it damaged my credit. Just don’t use the card.
Yes. Credit cards are viewed as available and immediate credit. We should live in a one credit card world. Store cards typically cost you more in the long run. MC, VISA, DISC, etc. or major credit cards provide the best value. However, slow to pay or missed payment is going to cost you big time! Either a demand for immediate pay-off or you get socked with a very high interest rate.