Credit rating question! (Dr. Boost read)
07-26-2006, 10:14 PM
#11
3.0 BAR
Join Date: Jan 2004
Posts: 5,708
Re: Credit rating question! (Dr. Boost read)
Well when creditors pull your credit report. They'll see that other creditors trust you with a high credit limit. so you have a total of 20k in credit and you owe just a small amount of that that shows something to other creditors. And when you close it you will owe a higher % to the whole amount of credit which will only be 6k. I may be talking out of my ***. lol But from what i've read i guess i can ASSume its correct 
07-26-2006, 10:30 PM
#12
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Join Date: Dec 2004
Posts: 1,976
Re: Credit rating question! (Dr. Boost read)
Originally Posted by MADMAX
Keeping it might be a better in the long run though since you have had it the longest.
want to know what will? have any card(doesnt matter the limit) and keep 20% of the limit on it all the time and always pay your bill on time. you need to be using credit to gain credit score. having it but not using it doesnt do jack. having it maxed out will hurt you as well
07-26-2006, 10:44 PM
#13
3.0 BAR
Join Date: Feb 2006
Posts: 3,906
Re: Credit rating question! (Dr. Boost read)
what u should do is call the 13.000 one and tell them u have another car with a better rat, if they will match it you will keep the car and get rid of the other one if not you will cancel.
they should give u the rate otherwise ---- them
they should give u the rate otherwise ---- them
07-26-2006, 10:49 PM
#14
1.0 BAR
Join Date: Apr 2006
Posts: 600
Re: Credit rating question! (Dr. Boost read)
Originally Posted by Maxxdout_EK9
dude, keep the card. your score will drop around 20-30 points since that is the card with your most credit history. You always want a long credit history, it helps alot. if it has no fee, and u pay it off within the grace why not just keep it. it is not hurting u one bit.
07-27-2006, 12:20 AM
#15
1.5 BAR
Join Date: Dec 2002
Posts: 1,008
Re: Credit rating question! (Dr. Boost read)
your credit score is built by:
paying on time.
having very little outstanding credit vs. what is extended to you.
your credit score is probably great if you have the little debt you have and always pay it on time. keeping the high limit card and keeping it paid off will help you in the long run and will hurt your score by getting rid of it. if it's a no fee card like you say it doesn't hurt you unless you get out of control or someone steals it and racks up a bill which will cost you $50 if you report it. just use it once in a while and pay it off, but i wouldn't suggest getting rid of it because it will lower your score and be harder to get it back later since you don't have much income.
when it comes to getting a house they may make you get rid of them depending on how you apply for the mortgage. if your score is high enough you can apply "no-doc" i think it's called (used a lot for folks that are self emp and/or have a hard time documenting their income). otherwise they may make you get rid of them because then you can be a risk to them regarding going crazy, but if you go into the qualification w/ the large limit, but no $$ owed then they may look at it very positively and don't say anything about it.
my suggestion--keep it, keep it clear, use it once in a while and immediately pay it off. i got into some credit card debt through some family situation and hurt my score because of finances and the large amount owed, but my score climbed greatly as i got them paid off and kept payments on time. you'd be suprised at what that does.
paying on time.
having very little outstanding credit vs. what is extended to you.
your credit score is probably great if you have the little debt you have and always pay it on time. keeping the high limit card and keeping it paid off will help you in the long run and will hurt your score by getting rid of it. if it's a no fee card like you say it doesn't hurt you unless you get out of control or someone steals it and racks up a bill which will cost you $50 if you report it. just use it once in a while and pay it off, but i wouldn't suggest getting rid of it because it will lower your score and be harder to get it back later since you don't have much income.
when it comes to getting a house they may make you get rid of them depending on how you apply for the mortgage. if your score is high enough you can apply "no-doc" i think it's called (used a lot for folks that are self emp and/or have a hard time documenting their income). otherwise they may make you get rid of them because then you can be a risk to them regarding going crazy, but if you go into the qualification w/ the large limit, but no $$ owed then they may look at it very positively and don't say anything about it.
my suggestion--keep it, keep it clear, use it once in a while and immediately pay it off. i got into some credit card debt through some family situation and hurt my score because of finances and the large amount owed, but my score climbed greatly as i got them paid off and kept payments on time. you'd be suprised at what that does.
07-27-2006, 03:13 AM
#17
3.0 BAR
Join Date: Aug 2004
Posts: 2,028
Re: Credit rating question! (Dr. Boost read)
I just recently got a credit card to start building credit with. My friend that has taken more loans out and paid more loans off than me also applied for the same card but couldn't get it. The problem was that he always pays his loans off real fast and the loans are never out for long. I guess in this case keeping a loan for a longer period of time and making more payments on it is better.
I don't see how keeping the card would hurt you, but it's not being any kind of benefit. Student loans can be turned into a beneficial thing as long as you keep them paid on time. They'll probably be a burden on you until you've got some history of paying them on time and get the amount paid down quite a bit.
I don't see how keeping the card would hurt you, but it's not being any kind of benefit. Student loans can be turned into a beneficial thing as long as you keep them paid on time. They'll probably be a burden on you until you've got some history of paying them on time and get the amount paid down quite a bit.
07-27-2006, 05:19 AM
#18
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Join Date: Dec 2002
Posts: 12,568
Re: Credit rating question! (Dr. Boost read)
funny you say that.
i have 3 credit cards, and pay them off in a timely manner as well, never a late payment ect.
we both applied for sears credit cards, they apporived us both, my limit was 600 his was 2000.
hes never had a credit card before. seeing that i have outstanding balances on 3 credit cards, do they factor that in when assessing you and giving you a set limit on a new card?
i have 3 credit cards, and pay them off in a timely manner as well, never a late payment ect.
we both applied for sears credit cards, they apporived us both, my limit was 600 his was 2000.
hes never had a credit card before. seeing that i have outstanding balances on 3 credit cards, do they factor that in when assessing you and giving you a set limit on a new card?
07-27-2006, 11:58 AM
#19
1.0 BAR
Join Date: Mar 2006
Posts: 426
Re: Credit rating question! (Dr. Boost read)
i know im probably gonna pay for this, but i work in collections for a large bank and I can tell you that as long as you keep the balance low, pay it on time or pay it off within the billing cycle its doing nothing but good for you, it may hurt your score a tiny bit if you close it, but as long as you have zero on the balance youll be ok within 6 months......i agree with scttydb411....if you go to get your pre approval for a house, and they say that they want you to close the card, then do it at that time(with a zero balance), because then it aint gonna matter.
hotrex you are correct
hotrex you are correct
07-27-2006, 12:08 PM
#20
1.0 BAR
Join Date: Mar 2006
Posts: 295
Re: Credit rating question! (Dr. Boost read)
I've read in several places that you should always keep your oldest card open. It seems that closing a card keeps all the bad stuff and you lose all the good history. And ya, make sure to use it and pay it off once in a while so your cc company keeps reporting activity.
