That is likely because you were using to much of the available credit that is not good for your credit report either, you would have been better off paying off the cards and keeping them unless the temptation to use them is to great for you.
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Just paid off and cancelled my Citi card
- Thread starter BamaFan
- Start date
Actually open, unused credit cards are viewed more cautiously because when a potential lender runs a credit report and sees several open credit cards, even if they 0 balances, they know at any given time you can go out and run them up. They look at your current debt and potential debt, 5 open credit cards with limits of $10,000 each is still $50,000 in potential debt even if they all have 0 balances. The lenders see potential debt and they see a greater possible liability.
I believe your wrong, My opinion is based on a Clark Howard statement where is your data coming from?
I was told when getting approved for a home loan to NOT pay off or close any account as it does negatively affect your score somewhat. Remember the banks want you to have lines of credit, hence the word credit.
Back on topic, I'll have to see if I have an account with Citi and if so, call and cancel it. I don't need credit for anything anytime soon so I'm not concerned with losing a few points.
Back on topic, I'll have to see if I have an account with Citi and if so, call and cancel it. I don't need credit for anything anytime soon so I'm not concerned with losing a few points.
****tyBank
Personal experience, owning 3 houses and 2 new cars and still have the ability to purchase pretty much what I want or need (within reason).
Also, that is what I was told by the loan officer at the credit union that financed my 3rd house. I'll take the word of my personal banker any day over Clark Howard who gets paid by advertisers.
I'm going by what I was told by my credit union when purchasing house number 3. It may have been different since I already had 2 other mortgages; banks are going to tell you what benefits them the most.
I agree, I do not care about losing a few points, I already have everything I need and my credit cards are mainly for convenience. I've already cancelled my Citi and First Bank cards and will be talking to my local bank next week about their stance on the Second Amendment. If anyone knows a bank that openly supports the Second Amendment please let everyone know, I would be more than happy to open an account with them!
I've been in the mortgage business for over 30 years. I have heard lots of theories on what affects credit scores. In my opinion you never know how anything you do is going to affect your score. (except not paying your bills on time and filing for a BK). It's all in a little black box from different credit companies so it's different with all of them. Just use common sense. I don't think cancelling one card will do enough damage to make a hill of beans unless it's the only one you have. I do think that if you're buying something like a house or car that it's best to not do anything until you've secured your loan.
With that said, I'll be cancelling my Citi card today by phone so they'll know why I'm doing it.
Doesn’t it hurt your credit to cancel cards ? Asking because I have some open I’m not using I just don’t want to be tempted to use it. Paid off all of my cc debt last year. Never felt so free. I swore I’ll never use them again unless a dire emergency.
