Closing a credit card can lower your score. However, in case of a new credit card, which has no long payment history, may not affect your score much. However, before closing any kind of account, new or old, you should remember to first pay off the credit cards in full. This will reflect your balance as zero. After paying it off, you can inform the issuer that you are closing the account.
Here's where I stand, I opened 9 credit cards 4 months ago thinking the more cards you have the faster you can improve your score as long you pay on time. I have 3 cards which are 18 months old + mortgage and auto loan, all accounts are 100% on time(Now my score is 668,659,636 ) What are my options to improve my score.
Making timely payments is the most important thing in developing the credit score. As you are already making timely payments, I don't think that you have to do anything else to improve your credit score. Always try to keep the balance of your accounts less than 50% of the available credit.
As you have applied for so many new cards, that may have affected your credit score. When you apply for new cards, the issuers before issuing you a new card, conducts inquiries on your credit report. That hurts the credit score. However, it gradually increases with the timely payments.
To improve the score along with the monthly payments, one needs patience. Score cannot increase overnight :)
closing new credit cards
Hi cdtm,
Closing a credit card can lower your score. However, in case of a new credit card, which has no long payment history, may not affect your score much. However, before closing any kind of account, new or old, you should remember to first pay off the credit cards in full. This will reflect your balance as zero. After paying it off, you can inform the issuer that you are closing the account.
Hope this helps.
Regards,
Aaron.
closing new credit cards
Thanks for your help Aoron!!!!
cosing new credit cards
Thanks Aaron!!!
Here's where I stand, I opened 9 credit cards 4 months ago thinking the more cards you have the faster you can improve your score as long you pay on time. I have 3 cards which are 18 months old + mortgage and auto loan, all accounts are 100% on time(Now my score is 668,659,636 ) What are my options to improve my score.
Thanks for any feedback!!!
improving credit score
Hi cdtm,
Making timely payments is the most important thing in developing the credit score. As you are already making timely payments, I don't think that you have to do anything else to improve your credit score. Always try to keep the balance of your accounts less than 50% of the available credit.
As you have applied for so many new cards, that may have affected your credit score. When you apply for new cards, the issuers before issuing you a new card, conducts inquiries on your credit report. That hurts the credit score. However, it gradually increases with the timely payments.
To improve the score along with the monthly payments, one needs patience. Score cannot increase overnight :)
Hope this helps.
Regards,
Aaron.
improve credit score
Aoron,
I think you're right.
appreciate your advise.
u shud actually keep ur balances below 30% of the avail credit not 50% - trust, I learned this the hard way lol.
30% of ur credit score is based upon how much you owe - thats where keeping the below 30 factors.
Your credit score is determined by the following.
1. Payment history = 35 %
2. Amounts owed = 30 %
3. Length of credit history = 15 %
4. New credit = 10 %
5. Types of credit = 10 %
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Hope this helps!
I'm very curious...can you tell me what can of credit card you applied for?