Posted on: 06th Feb, 2013 01:27 am
Hi there… I’m in the process of rebuilding my credit score and would like to cancel Bofa and Best Buy cards due to low limit and unfavorable interest rate. How would this affect my score? Is it a bad move to close both at once? Or one at a time?
Hi Guest,
Closing cards can definitely have a negative impact on your scores. It will always be a good option to close down your cards one by one so that negative impacts are less.
Take care.
Closing cards can definitely have a negative impact on your scores. It will always be a good option to close down your cards one by one so that negative impacts are less.
Take care.
Are you facing problems in making payments? If you, I would suggest you to continue with those cards. But, you need to be very rational while using those cards. Anyways, you need to ensure that you don't default in making payments.
Keep the cards, and use them. If they have a small limit, lets say 500, then spend what you would on gas by using that card. So you charge 200 month, then pay it almost off. Showing a 0 balance is not using your credit. But over using your credit is worse. Keep your balance under 50%, but be using them. Credit is based on how well you manage credit. Not that you have 10 cards open, but never use them. Negative and derogatory credit will impact the most. So pay off any derogatory accounts, and remember to stay under 50% of limits...
