Credit report question
Posted 13 March 2008 - 02:29 PM
So say DH and I have several credit cards most of them with a zero balance but say if we were to max them all out we could charge say 50k. Would it be better for your credit report if you just closed those zero balance credit cards, or keep them opened? I know their is a point where what you "could" spend can hurt you and I just want to make sure if we decide to by another house or something down the road that our credit is the way they want to see it. Does any of that make since?
Posted 13 March 2008 - 02:36 PM
Posted 13 March 2008 - 02:41 PM
Posted 13 March 2008 - 02:43 PM
Posted 13 March 2008 - 02:47 PM
Amounts Owed Tips
Keep balances low on credit cards and other “revolving credit”.
High outstanding debt can affect a credit score.
Pay off debt rather than moving it around.
The most effective way to improve your credit score in this area is by paying down your revolving credit. In fact, owing the same amount but having fewer open accounts may lower your score.
Don't close unused credit cards as a short-term strategy to raise your score.
Don't open a number of new credit cards that you don't need, just to increase your available credit.
This approach could backfire and actually lower your credit score.
Posted 13 March 2008 - 02:56 PM
I would definitely not close cards that you've had for more than 5 years...I haven't read that anywhere, it's just my opinion.
If you opened some cards for the intro 0% financing for a year and have paid them off recently, it probably wouldn't hurt you to close them...again, just keep your total avail credit in mind.
Posted 13 March 2008 - 03:08 PM
I think most if not all my cards have been open for awhile now. So when does too much credit effect your score? So say I have 50k in open credit but I make say 60k a year, wouldn't that be bad for your credit report?
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