close credit card?

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iVillage Member
Registered: 03-25-2003
close credit card?
2
Fri, 09-02-2005 - 2:03pm

Hi all! I am wondernig, what is the best option after paying off a credit card in order to bring up your credit score? Should I close the account, never to use it again, or leave it the way it is, or possibly ask to have my credit limit lowered on it. I know that too much available credit can be seen as a "threat" and lower your credit score. Maybe just asking to have my limit lowered would help? I have three credit cards, one is a visa with a balance very close to my limit which is 4500...when I get in the situation to get this paid off, I'm wondering if I shoud close it, or just ask to have my limit lowered to around 2500 for emergency use. I have an old navy credit card with a 250 dollar balance and once that is gone I think I will close that account. What do you think? Or keep it and use it for emergencies when I really need an outfit for something and don't have it? And I just got a new card, I hated to do it but we are desperate and I got it mainly for emergencies. My car needs brakes and I can't put it off any longer, and not enough room on my other cc because we had to buy a laptop for my guy for his new job, so the only option is to use the new cc for the brakes.

So...close them, lower limit, or leave them be? I am looking for the best way to up my fico score. I have never once had a late payment on anything and no negative marks yet my score is only high 600's at the moment. I have a friend with much more overall debt than me (although not credit cards, this is car and student loans) whose score is almost 800, and she has had late payments. I'm kind of mad about this...what am I doing wrong? Is it because my limits are too high (threat if I were to go crazy and run up all my cards) or because my balance is too close to my limits? Agh!
Thanks for advice.

Erin

                          

             

iVillage Member
Registered: 06-16-2004
Fri, 09-02-2005 - 7:32pm

Do not close the accts.

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iVillage Member
Registered: 09-20-2004
Fri, 09-02-2005 - 8:18pm
Erin,
I would not close the account. One thing that affects your credit score is how long you have had accounts open, what kind of accounts you have, and the ratio of your debt: credit limit. Having a high credit limit and owing $3000 for example looks better than having a credit limit of say $3500 and owing $3000. My credit score is in the upper 700s, and I am in debt up to me eyeballs. But, i have several different kinds of accounts open (car loans, store cards, visas), the ratios are not high and I have never had a late payment. My oldest account is near 10 years old now. Anyhow, 4 months after financing a new car, my score was still better than dhs, so I financed his car with me as the primary, too. I was surprised...because my personal income from wages is under $25,000. I would just keep the cards open and pretend they don't exist. Good luck,
Heather