co-worker asked:
I have three different major credit cards- all Mastercard and Visa. Two of them have a zero balance but are still open. One has over $2000 on it, which I have been paying off and I am in good standing. Is it better for my credit score to close my zero balance cards or to just lower my available credit?
Dean
I have three different major credit cards- all Mastercard and Visa. Two of them have a zero balance but are still open. One has over $2000 on it, which I have been paying off and I am in good standing. Is it better for my credit score to close my zero balance cards or to just lower my available credit?
Dean
Crystal
No. Leave your accounts open with zero balances.
Comment by Kurt — June 24, 2010 @ 4:52 am
Tommy
Keep them open and don’t use them. As far as your other card and raising your score…pay on time every single time and pay more than the minimum whenever you can.
Comment by Carrie — June 25, 2010 @ 12:31 am
Dora
Leave the 0 balance accounts alone. A large part of your score is based on the ratio of revolving debt to available limits. If you close those accounts, you lower your available limit which makes your debt percentage higher.
Just work on paying off the card with the balance. Then use each card periodically and pay them in full each month. This will build a good credit history. Having 3 credit cards will NOT hurt your score. It ain’t the number or available limit. It’s the amount of debt and how you pay that affects your score.
Comment by Roland — June 25, 2010 @ 10:03 am
Kathleen
The FICO system is inherently flawed. They judge your use of credit cards in more ways than I can type here. The best way to use credit cards and raise your credit score over time is to keep the balances low and pay them off every month in full. Spend $50 a month, pay off $50 a month while keeping zero carry over. Over a 6 & 12 month time frame, FICO will increase your score as long as this is consistent. No 30 day late’s, always use the card every month and pay the card off in full every month. FICO looks at how you manage credit not how your do not use Cedit. Letting cards sit with a zero balance does not work, they need to be used, just used the right way. Charge a little, pay it in full. Do this for a year, your score will go up.
Comment by Renee — June 26, 2010 @ 2:40 pm