Credit Cards For Good Credit

I was going to consolidate two credit cards on a new low interest card and cancel the old cards. However, I was informed that the closure of the old cards would not be a good eye on my credit file. I thought it was strange that good credit reflected on your credit record for 10 years and keepin the old card open to forging your debt ratio higher. Can someone explain this?

What other posters have said is true. However, I personally do not believe in keeping open all the credit cards for the simple pleasure of having.

In your case, I suggest keeping the oldest map open and close the other. This way, you keep the history and the upper limit, but end up with only 2 major credit cards instead of 3.

Yes, it's true. Because good credit history along with taking at least 30% of the FICO score calculation for your credit score. Also closing credit card accounts will also effect your credit score in a bad position (bottom of your score). The ratio of debt if the debt must exceed your credit limit, if you reverse it. Your debt ratio should be less since you will not fail to do anything on that card, and credit limits only add to the available credit for calculating the debt ratio. And while you have this account open, it has no time limit on this account to your credit (no limit to 10 years). Do NOT close this account long rule. Just put it away and make sure you use long long time, because some companies do not close credit card accounts that are inactive.

Having old credit card shows a longer history of credit, once you get rid of those it could significantly reduce this story, unless you have other cards you got at the same time. Credit scores do not go where the accounts were opened, so if you opened the cards a decade ago and did not open another card account by the cancellation of five of these it would shorten your background Credit for five years. Also, if you keep the cards open, it will display a smaller percentage of your credit used. For example, if you have a total limit of 2 cards of $ 10,000 and another card with $ 5000 maxed out the credit bureau sees you using 33% of the amount you can but if you close those that should go up to 100%, which makes your score will also go down. This can be quite confusing, but I hope I helped some.

do not close the old cards. This increases the credit is a good relationship between the credit limit and credit balance, so if you close the card, your credit limit will decrease and you lower your score.

they like to see long-established and credit balances low compared to credit limit - if you have 2 credit cards - one with 1 10,000 limit and the balance is zero, and the other with a limit of 1000 balance 500 - your total debt ratio limit / is 500 / 11000 or less than 5%. If you close the acct 10,000 debt ratio you up to 50% and they look at you like a bad risk - using too much credit - card lock everything away in high yield and does not use or use once every 6 months for a small purchase and pay immediately, if the credit card company to see that the ACTC is still active and do not close on you

You have received the correct advice. I recently discovered that cancel a credit card (even after u it paid in full) is detrimental to your credit rating over all. When you cancel what you do is erase all the good credit you have obtained during the existence of the card. So doing, you must start over. It is best to keep it (even if you do not use it often) because it shows your commitment to long. This helps maintain and even improve your ranking over time.