Credit card shutting down!
|
  |
|
|
| Author |
Message |
channa
Apprentice
Joined: 04 Dec 2006
Posts: 3
|
 Posted: 01/09/08 - 06:40 Post subject: |
 |
|
| Hello everybody! My name is Rita and I want to ask you something about my credit card. The thing is that I have one credit card which I never use. I was thinking about Credit Card shutting down! However, a friend of mine told me that it’s not a good thing to do. Why so? Thank you. |
|
|
Back to top
|
|
|
|
 |
byron
Apprentice
Joined: 08 Feb 2005
Posts: 3
|
| Posted: 02/07/08 - 22:36 Post subject: |
|
|
| Dear Rita, your friend was absolutely right. Although you can always shut down those credit cards which you don’t use, maybe it would be better just to put them aside. The thing is that shutting down a credit card can affect your credit score utilization ratio. Now you probably wonder what is that? Basically, utilization ratio shows which amount of available credit you have used in comparison with the credits you could use. It is always better to have the lower ratio possible. When you close any of your credit cards, that ratio goes up, because the amount of available credits decrease. Other thing is that old and stabile accounts are good for your credit score. They show your credit history in a good way. Closing out old accounts can significantly change your score. My advice is to keep that credit card. In the end you never know, maybe one day you would need it. That would be all from me. Bye! |
|
|
Back to top
|
|
|
|
|
|
| |
All times are GMT
|
| Page 1 of 1 |
Related topics: | |
|
|
