Re: Will Cancelling Credit Cards Hurt Score? Yes.
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Posted by JR
(64.12.96.205) on November 09, 2002 at 23:03:34:
In Reply to: Will Cancelling Credit Cards Hurt Score? posted by BabyBlues on November 09, 2002 at 22:14:16:
It will hurt your FICO score. You've heard the story that only people who don't need credit can get it? Part of your FICO is based on the ratio of credit used to credit available. It is better to owe $2000 and have $10,000 in open credit than to owe $500 and no other open credit. You'll have to learn to control your use of the cards to build your credit score. I suggest that people pay all of their utilities and phone bills with their credit cards and then PAY THE BALANCE WHEN THE BILL COMES. Lock the cards away, give them to your mother - do anything to not abuse the cards but you must have credit available to build your score. If you want to get rid of cards that have an annual fee, try increasing the limit on the cards that don't have a fee and closing the fee cards. Use the cards and make regular payments - make them EARLY and MORE THAN THE MINIMUM. Making them early will help you to increase the limit. Making more than the minimum helps your credit score.
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