Question : Closing a credit card account that is inactive? How much will it affect my credit report?
I've had this account for about two years, and I haven't used it in a long time, and I'm thinking of closing it but I don't know how it would affect my credit report. This is a secure credit card, with only a $300 limit. I have two other credit cards that I use a lot more often and I've been very responsible about paying bills on time.
- asked by jenahfah
All Answers:
Answer #1
Having an unused credit limit on an unused card isfar better for your credit score than not havingthe card at all.As long as you don't need the cardcut it up and get rid of the card but keep theaccount open.
- answered by terry_powerprofit
Answer #2
No harm to your credit
- answered by JAY
Answer #3
If nothing else, use it for a small purchase atleast once a year and pay it off. If you do notuse an account for 12 months, they might close iton you anyway.What hurts your credit the most isabuse, failure to pay, or using more than 30% ofyour limits. If you have three cards and pay themoff each month, then spread the debt out so thatno one card exceeds 30% of its limit.Having a cardeven with only a $300 limit, is $300 worth ofcredit. As soon as you close it, your availablecredit drops by $300, which could hurt you.If anyof your cards are charging annual fees, considergetting another card with a higher limit and nofees. After you get the boost of the extra creditlimit, then close the card with the fees.
- answered by JD_in_FL
Answer #4
Why close an account that you have built up overtwo years is the better question?If it is securedand you have good payment history, why not callthe issuing credit card company and ask them togive you a unsecured credit card?But to answeryour question, it probably will have an effect butthe effect is unknown without knowing more aboutyour situation. No one can answer this questionwithout knowing you entire credit file history. You can however, go to simulators like myfico.comor MSN has a simulator that will show what willhappen if you close the account.I think it isbetter to keep it inactive and unsecured thenclosed. You never know when it could help andbuilding credit is what you have done with yourbill payment history.Good Luck
- answered by teenriodoll
Answer #5
No harm.
- answered by spifiman1
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