? about raising or lowering your credit score

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mopar65

mopar65

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Sorry for the dumb question but I am looking for help and addvice. OK short story,I got my self to far in debt and it dropped my credit score, so I sold my race car and some other stuff off. I payed off 5 credit cards and one loan.payed off 8,000 worth of debt. OK my question is should I leave them open and not use them or close them? I really want to close them but not sure if it will lower my credit score? Also how long does it take to show on the credit report that they were payed off? Thanks mopar65
 
I would leave the 0 balance credit accounts open. At least for the time being, or for a while. Also, Do not carry those cards around. Put them somewhere safe at home. Or even perhaps ask someone else you trust to hold on to them for you. Key there is not to have them readily available. The card companies will monitor those accounts for a while to see how frugal you have become. Your credit score should rise after a while depending of course on your spending habits.
 
good questions, I would like to hear from knowledgable person here too. I closed a cc once, ( I wanted to get down to only 1 card), I have the idea its looked at un favorably?
I feel the credit score thing is a tool for insurance co. car dealerships etc, to make more money off the " less than wealthy" individual!???
 
Leave them open. The longer you have an account, the higher youre score, provided you've made your payments on time.
 
It's hard to say without knowing your income. What a credit rating assigner will factor is on time payments, and income to debt ratio as well as debt potential. Having five credit cards even at zero balance could be a bad thing depending upon your income. Do some research on preferred income to debt ratios for credit ratings and go from there. I can tell you I have excellent credit and have not had a credit card in 10 or 15 years so one card won't hurt.
 
mopar65 said:
my question is should I leave them open and not use them or close them? I really want to close them but not sure if it will lower my credit score? Also how long does it take to show on the credit report that they were payed off Thanks mopar65
Click to expand...

Leaving the credit card open and not using them will not improve you credit rating. Using a credit card and paying it off in full every month will improve your credit rating.This proves that you can handle credit. Question is, can you pay them off every month. Use them sparingly and pay full balance when due. If you can't control yourself don't use them.

Most companies report monthly to the credit bureaus, so about 30 days. Hope this helps.
 
If a card cost you a bit of $$$ to keep, close it. even with 3-4 open cards with no debt on it will help your debt to total credit ratio. Check it out online, it seems to go against common sense.
 
my take. banks and credit card co. ( they are banks) are total crooks!!!!!

best to use CC for emergency or for only what will be paid off the end of the month.

look what the banks did to the country when it all came falling down in 08!???? wait till next time?

sorry to get off subject somewhat.
 
I know I was told when applying for a home loan I was told that any credit card even paid off show as available credit to the full amount of the card. I have 2 cards and closed one then called to lower the cap on the other. Even if you cancel the card it will still show a history on your credit which is good.
 
leave them open. if you feel you must close them dont close more than one per year. if you close more than one in a short period of time it will drop your score because it drops your available credit.its better to keep your already established accounts because the longer the history you have with those the better it is for your credit score. no debt is a great feeling but a little debt isnt a bad thing either.
 
Guy I know has way too many cards, he uses them all the time but most get paid off monthly. But due to the total number and credit limit it lowered his score

Mine was 854 last check. I have several cards, pay my bills on time and pay off credit cards monthly

Closing cards can lower your score a few points for each one. ( anytime there is. Check into your credit changes your score) Im with the others, if there is a fee to keep the card, close it. If there isn't a fee and you can restrain from using it, hang on to it, put it in a safe at home and forget it.

Don't apply for those in store cards when you go to buy something, it will lower your score.

Have ONE CARD, use it sparingly and pay it off monthly. Really think about a purchase before buying.

I think it is BS that the insurance companies use it to rate your car insurance. Just because you have less credit rating does not mean you are a high risk driver.

One thing I read was give your cards to someone you trust, who would that be? A friend had a joint account with her mom, ( you would think you could trust your mom) well she went to get some money out of the account and mom spent it all. It was her money, mom was on the account, but her money. Mom needed money and got it all. I wouldn't trust anyone with them. Shred them, card would still be open, but not available to use. Write the numbers down and keep in safe place

It will take a while to improve your score, but it will go up slowly.
 
Closed accounts even if they are at the card holders request reflect negatively. Make a point to use them once in a blue moon to keep them active but pay them off right away. I've been in the 800s for years even after some late payments from being on vacation. (the auto pay had expired)
 
The thing that will affect you most is staying at the max line for a long period of time. Now that you've paid them off, as said, dump the ones that have annual fees, keep the ones that have low interest rates, and play within the "rules."

Keep them active, even if it means making a $10 purchase once a month and paying it off even before the bill arrives. (Online statements are usually ahead of the paper bill.)

Some cards want a balance. It goes against the grain of everything we've been taught about credit cards, but sometimes you can have too good a score. I know of a gentleman right now who made six digits a year, never carried a balance, overpaid each month on his mortgage to pay it down quicker and save himself the interest money. His "score" was almost close to perfect. He was denied a credit card simply because of the fact that none of the rest of his cards carried a balance.

Since that's the case, it doesn't hurt to have a card with a balance on it. Charge $50, pay $35 a month. Pay over the minimum to keep the interest charges low, but never carry a balance big enough that you can't pay it outright if you have to. Only do this with one remaining card and make it a "name" card, like Discover or Visa.
 
Thanks for all the great info guys.i have always payed my bills on time etc.just had to many open at one time. I used to have a 740 score but got hooked on how easy it was for me to get a card.my score now is only 630.also sense I sold my race car and my cat trackloader I no longer needed my 2011 ram 3500 dully truck. So I traded it in on a single wheel truck. Found out before I payed a bunch of my cards off, that my debit to income ratio is 68 percent. My credit union said they like to only see it at 50 percent. I got the truck but they said when I get my credit score up to 660 I can redo my truck loan and drop my interstate rate 4 points.
OK on the cards I payed off I know one or too I really want to pay off. I payed them off Saturday and come Monday one of them charged me a 8 dollar yearly fee and then charged me a 22 dollar interest charge . I can keep from useing them or I can just cut the cards up. I was asking because half the people I asked said to close them and the other half was saying keep them open
 
IMO one credit card is enough for most of us. having "available" credit at the bank or better yet, the credit union, is a life's necessity. I use paypal credit for some purchases off feebay, but I make a point to pay it off by the end of the month, if I can't, I DON"T buy .. just me.
and yes I KNOW for a FACT, that ins. co. will charge a higher premium if the credit score is not high enough. FACT their reasoning is, the number crunching stat guys tell them, if you have a lower credit score, YOU are more likely to have a claim.. I say BULLSHIT. just a way to screw someone out of a few extra dollars!???
all I know is its a great feeling to know you have enough income to live and pay your bills. to not owe a c c co, anything, or bank, or have NO mortgage. but at my age ( 67) its a lot different than being a younger guy in the mainstream workforce, with a young family, etc... just me.
 
My rating is great, I'm retired now and on a "fixed income". I don't owe any money to any one. Houses and condo are paid off, as are the cars, so it's just monthly utilities, insurances and taxes that I MUST pay regularly.

I went and looked at buying a new truck this past weekend, but, didn't, as there is nothing wrong with the two I have. I have a loaded short bet crew cab as my daily driver, and a long bed regular cab as my "worker", for hauling.

My wife has her SUV, and I my 71 Swinger (toy) so we're set. I think the next major purchase ( over $250.00) will be a new TV, and a new computer ( probably a tablet).

Looking at a 4 door Valiant to build an auto cross car, for my son, in Orlando. That should be fun.
 
Five open credit cards is a lot. But, it's true that closing accounts can lower your score. The credit bureau's look at length of credit.

Perhaps closing a couple of the "newer" cards and leaving the older cards open. You can use them to buy a tank of gas and pay them off, or not use them.

It's also true that creditors will look at "available" money (i.e. money you could take out on a credit card) but that shouldn't affect your credit score.

Since you lowered your money liabilities, your credit score should increase in about 90 days.

Congratulations on getting your score under control. I used to work in a financial institution coaching military members on their credit. And...although you want to be higher, 630 is not too awful bad. You should see it going up after about 90 days.
 
Frankie said:
My rating is great, I'm retired now and on a "fixed income". I don't owe any money to any one. Houses and condo are paid off, as are the cars, so it's just monthly utilities, insurances and taxes that I MUST pay regularly.

I went and looked at buying a new truck this past weekend, but, didn't, as there is nothing wrong with the two I have. I have a loaded short bet crew cab as my daily driver, and a long bed regular cab as my "worker", for hauling.

My wife has her SUV, and I my 71 Swinger (toy) so we're set. I think the next major purchase ( over $250.00) will be a new TV, and a new computer ( probably a tablet).

Looking at a 4 door Valiant to build an auto cross car, for my son, in Orlando. That should be fun.
Click to expand...

My neighbor has a buddy that knows a guy who's uncle has even more money and cars than that. :) ha ha
 
Never mind opinion - read these from the industry:

There's a tab on this one that specifically addresses closing credit cards (starts with Rumor):

http://www.experian.com/credit-advice/topic-what-affects-credit.html

#10 on this list as well:

http://www.wisebread.com/10-surprising-ways-to-negatively-affect-your-credit-score

These two are more generic:

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

https://www.wellsfargo.com/financia...challenges/repair-credit/affect-credit-score/
 
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