Question for the credit experts

What? Why would it? You are planning on still paying that balance off, correct? You physically lost the card itself?
 
No, I called to cancel it and they gave me a spiel about "OK, but this will show up as being closed with a balance" and it might affect my credit. I'm planning to pay it off, just don't want the card anymore.
 
vortech302 said:
No, I called to cancel it and they gave me a spiel about "OK, but this will show up as being closed with a balance" and it might affect my credit. I'm planning to pay it off, just don't want the card anymore.
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Then yes, that WILL negatively affect your credit.
 
VanFaasenC said:
you have to pay it off completely then close.
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Please do not post information if it's not correct. Closing credits with zero balances CAN hurt your credit.

Why you ask? I'll tell you.

Picture 5 credit cards as 5 glasses of water. All the glasses can be filled to 10 oz ($10,000). Say you have 2 oz ($2000) of water in each glass and 1 day you get the bright idea to put all that water (balances due) in 1 glass (1 card) and fill it to the full 10oz limit. Fair enough...you still have a 20% ratio of credit borrowed to credit available. Say you get even smarter *sarcasm* and you decide to break the remaining 4 perfectly good EMPTY glasses (close credit cards with no balances). Well guess what? Your credit report now shows that you have used 100% of the credit extended to you. You look like you're a high risk borrower. DOOOOOOOOWN goes your credit score.
 
However, with the new scoring formulas, what Al said becomes no longer true. They will score you higher for demonstrated ability to be responsible with your credit choices.
 
so what if i pay my credit card off fully, and leave it open for a few months before closing it? effect positive or negitivly?
 
I just closed one because they were charging a member fee even though it had a 0 balance. I have 4 cards all with a 0 balance now.
 
Crazzy_Al said:
We'll see...

:roll:
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There is no debate on it. The scoring guidelines are pretty well set in stone. With some of the reform the government is trying to push, it will really start to regulate lending practices to a more practical level. No more people with 100k incomes getting approved for endless amounts amount of credit based on their score.
 
so keep the card, and keep it $0 balance for the best scoring? i have heard its best to keep your balance around but not above 49%to earn the most points per month
 
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