| Vancouver Off-Topic / Current Events The off-topic forum for Vancouver, funnies, non-auto centered discussions, WORK SAFE. While the rules are more relaxed here, there are still rules. Please refer to sticky thread in this forum. |
 | 
03-24-2011, 08:47 AM
|
#1 | | I don't get it
Join Date: Sep 2003 Location: Vancouver
Posts: 423
Thanked 0 Times in 0 Posts
Failed 0 Times in 0 Posts
| Cancelling Credit Cards --> affect Credit Score/Report
To the Credit / Financial people here:
I have two credit cards (Visas) that I don't use. One is for backup for car rentals (LDW coverage, $8,000 limit) and one which has reduced my credit limit repeatedly ($1,500 limit).
My question is, since I don't need/want these credit cards anymore, will the cancellation of these credit cards affect my Credit Score/Report?
Thanks for your advice!
| 
|  | |
03-24-2011, 09:01 AM
|
#2 | | Diagonally parked in a parallel universe
Join Date: Aug 2009 Location: Coquitlam
Posts: 1,476
Thanked 522 Times in 263 Posts
Failed 102 Times in 40 Posts
|
Yes it will.
You're better off to just keep them and not use them if you're concerned about your credit score.
Reducing your credit limit also dings your credit score for what ever reason. But at the same time, having too much credit (as it's a liability) can affect you negatively if you're looking at borrowing money soon so it's best to figure out what will be the larger detriment.
__________________
~ Just another noob looking for a clue
| |
| | |
03-24-2011, 09:31 AM
|
#3 | | SFICC-03*
Join Date: Mar 2002 Location: richmond
Posts: 8,898
Thanked 3,539 Times in 1,390 Posts
Failed 164 Times in 85 Posts
|
people say credit scores are hard to fix, but when i was in school i had the worst score possible at the time. i didnt pay my minimums on my cc's, maxed out constantly, etc...
then i got my first career job and paid stuff regularly on time, often within a few days i'd clear out my entire bill. after about a year of that i was getting approved for everything.
just my observation
| |
| | |
03-24-2011, 11:15 AM
|
#4 | | I am grateful grapefruit
Join Date: Mar 2005 Location: Vancouver
Posts: 4,094
Thanked 831 Times in 392 Posts
Failed 83 Times in 11 Posts
|
I had a credit card here that I stopped using when I moved to the UK - retarded part was that I got dinged with an inactivity fee after like a year of nothing put on the card. I guess I didn't read the stupid agreement hard enough.
If you don't use the card - it's better to keep them around, put a few bucks on there, and then pay it off right away so you don't forget.
| |
| | |
03-24-2011, 12:04 PM
|
#5 | | Diagonally parked in a parallel universe
Join Date: Aug 2009 Location: Coquitlam
Posts: 1,476
Thanked 522 Times in 263 Posts
Failed 102 Times in 40 Posts
| Quote:
Originally Posted by gars  I had a credit card here that I stopped using when I moved to the UK - retarded part was that I got dinged with an inactivity fee after like a year of nothing put on the card. I guess I didn't read the stupid agreement hard enough.
If you don't use the card - it's better to keep them around, put a few bucks on there, and then pay it off right away so you don't forget. | I've got an emergency card I don't use much and my regular one. I set up my kiddo's pre paid cell phone to refill on the emergency card, so it gets hit for $10/month which keeps it active and the credit card company satisfied.
__________________
~ Just another noob looking for a clue
| |
| | |
03-24-2011, 12:13 PM
|
#6 | | I contribute to threads in the offtopic forum
Join Date: Dec 2003 Location: Vancouver
Posts: 2,777
Thanked 1,045 Times in 419 Posts
Failed 1,372 Times in 243 Posts
| Quote:
Originally Posted by unit people say credit scores are hard to fix, but when i was in school i had the worst score possible at the time. i didnt pay my minimums on my cc's, maxed out constantly, etc...
then i got my first career job and paid stuff regularly on time, often within a few days i'd clear out my entire bill. after about a year of that i was getting approved for everything.
just my observation | lol how would not paying your minimums and maxing out give you the WORST score possible?
I guess you haven't seen worst.
| |
| | |
03-24-2011, 12:25 PM
|
#7 | | SFICC-03*
Join Date: Mar 2002 Location: richmond
Posts: 8,898
Thanked 3,539 Times in 1,390 Posts
Failed 164 Times in 85 Posts
|
^lol yeah i was kinda expecting someone to say that.
i dont really mean the "worst" score but very bad considering the types of credit i had.
main obligations were credit card and phone bill. also was regularly late on the phone bill too.
i think i once tried to up my credit by 1000 at the time and they said no.
| |
| | |
03-24-2011, 12:34 PM
|
#8 | | I answer every Emotion with an emoticon
Join Date: Feb 2005 Location: somewhere
Posts: 7,906
Thanked 2,485 Times in 1,007 Posts
Failed 1,234 Times in 307 Posts
|
pay off any owing amount and just leave your cards at home and never think about it..
that should help with your credit score until you ready to use it for something big..
| |
| | |
03-24-2011, 01:02 PM
|
#9 | | My homepage has been set to RS
Join Date: Jun 2006 Location: Richmond
Posts: 2,224
Thanked 1,207 Times in 432 Posts
Failed 203 Times in 83 Posts
| 
the graph represents the parts that make up your credit score
cancelling credit cards will affect the 30% "amounts owed" part because cancelling a credit card affects your balance-to-limits ratio
example:
- you have 3 cards, $5000 limit each
- 2 of them you have a balance of $1000 owing each
- you cancel the one with no balance
- before you cancel, your balance-to-limit ratio is 2/15 = 0.13
- after you cancel, your balance-to-limit ratio is 1/5 = 0.20
by cancelling a card, your percentage owing got worst, thus decreasing your credit score
generally speaking, only cancel when the limit of that card is really low compared to your other ones
correct me if im wrong
| |
| | |
03-24-2011, 01:14 PM
|
#10 | | Willing to sell body for a few minutes on RS
Join Date: Mar 2002 Location: Victoria
Posts: 10,737
Thanked 5,277 Times in 1,945 Posts
Failed 185 Times in 100 Posts
| Quote:
Originally Posted by TheNewGirl But at the same time, having too much credit (as it's a liability) can affect you negatively if you're looking at borrowing money soon so it's best to figure out what will be the larger detriment. | There is no such thing as too much available credit. What will affect your score negatively is if you have a massive balance on that credit. Basically what dachinesedude posted on balance-to-limit ratio.
__________________
1968 Mustang Coupe
2008.5 Mazdaspeed 3
1997 GMC Sonoma ZR2
2014 F150 5.0L XTR 4x4
A vehicle for all occasions
| |
| | |
03-24-2011, 03:53 PM
|
#11 | | I contribute to threads in the offtopic forum
Join Date: Dec 2003 Location: Vancouver
Posts: 2,777
Thanked 1,045 Times in 419 Posts
Failed 1,372 Times in 243 Posts
| Quote:
Originally Posted by dachinesedude
the graph represents the parts that make up your credit score
cancelling credit cards will affect the 30% "amounts owed" part because cancelling a credit card affects your balance-to-limits ratio
example:
- you have 3 cards, $5000 limit each
- 2 of them you have a balance of $1000 owing each
- you cancel the one with no balance
- before you cancel, your balance-to-limit ratio is 2/15 = 0.13
- after you cancel, your balance-to-limit ratio is 1/5 = 0.20
by cancelling a card, your percentage owing got worst, thus decreasing your credit score
generally speaking, only cancel when the limit of that card is really low compared to your other ones
correct me if im wrong | so it's okay to cancel if you don't owe anything on any of those 3 cards?
| |
| | |
03-24-2011, 04:59 PM
|
#12 | | Rs has made me the woman i am today!
Join Date: Oct 2004 Location: Richmond
Posts: 4,457
Thanked 2,259 Times in 439 Posts
Failed 595 Times in 124 Posts
| Quote:
Originally Posted by aznlangjai so it's okay to cancel if you don't owe anything on any of those 3 cards? | I'm wondering this also.
because if you have a $0 balance on all three cards then the ratio will be 0/15 = 0, right?
| |
| | |
03-24-2011, 06:47 PM
|
#13 | | Revscene.net has a homepage?!
Join Date: Jun 2004 Location: Vancouver
Posts: 1,206
Thanked 188 Times in 83 Posts
Failed 148 Times in 32 Posts
|
I had a TD gold no fee card that i only use for emergency, I have never used it in abt 1-2 years and they automatically cancelled it for me with no fee, that way, since the bank cancels it, it won't affect your credit
| |
| | |
03-24-2011, 08:08 PM
|
#14 | | Rs has made me the woman i am today!
Join Date: Oct 2001 Location: Here! n There!
Posts: 4,149
Thanked 498 Times in 222 Posts
Failed 121 Times in 59 Posts
|
just keep it till its expiry date and then don't activate the new one when they send you...
__________________
Go Canucks Go!
| |
| | |
03-24-2011, 08:23 PM
|
#15 | | Rs has made me the man i am today!
Join Date: Oct 2005 Location: Langley
Posts: 3,493
Thanked 2,183 Times in 606 Posts
Failed 404 Times in 90 Posts
| Quote:
Originally Posted by FerrariEnzo pay off any owing amount and just leave your cards at home and never think about it..
that should help with your credit score until you ready to use it for something big.. | thats what i do...ive had my visa for many years and it just sits in a drawer in my desk...i have no use for it...i know how much money i have in my bank, and its more then what my limit on my visa is, so ill just use my own money instead of using a card....
is there anyway i can check what my credit score is?
| |
| | |
03-24-2011, 08:29 PM
|
#16 | | SFICC-03*
Join Date: Mar 2002 Location: richmond
Posts: 8,898
Thanked 3,539 Times in 1,390 Posts
Failed 164 Times in 85 Posts
|
u can pay a few bucks to see it instantly or get it for free but its a PITA http://www.transunion.ca/ | |
| | |
03-24-2011, 08:36 PM
|
#17 | | RS.net, where our google ads make absolutely no sense!
Join Date: Jan 2006 Location: vancouver
Posts: 925
Thanked 237 Times in 102 Posts
Failed 84 Times in 31 Posts
|
I just got 300 dollars worth futureshop gift card with my visa. It's definitely worth using the visa instead of straight cash. Mote convenient as well as some credit cards offers services like travel insurance. Travel car rental insurance. Buyer protection. A year extra warranty on top of the manufacture warranty on items purchased with the card. Totally worth it Posted via RS Mobile | |
| | |
03-27-2011, 04:27 AM
|
#18 | | WOAH! i think Vtec just kicked in!
Join Date: Feb 2005 Location: Bowen Island
Posts: 1,605
Thanked 525 Times in 148 Posts
Failed 313 Times in 50 Posts
|
The best way to quickly repair/strengthen your score is by having a huge credit limit, but regularly using very little (e.g. 10K limit, use $20/mth and pay it off). The credit bureaus calculate this ratio regularly to determine your credit score. I saw this on a CBC documentary several years ago.
| |
| | |
03-27-2011, 10:13 AM
|
#19 | | I came, I saw, I conquered.
Join Date: Mar 2005 Location: Vancouver
Posts: 1,884
Thanked 585 Times in 176 Posts
Failed 88 Times in 33 Posts
| Quote:
Originally Posted by achiam The best way to quickly repair/strengthen your score is by having a huge credit limit, but regularly using very little (e.g. 10K limit, use $20/mth and pay it off). The credit bureaus calculate this ratio regularly to determine your credit score. I saw this on a CBC documentary several years ago. | Is this true?
| |
| | |
03-27-2011, 11:27 AM
|
#20 | | Revscene.net has a homepage?!
Join Date: Feb 2005 Location: Vancouver
Posts: 1,296
Thanked 522 Times in 194 Posts
Failed 87 Times in 37 Posts
|
would overpaying a creditcard bill help it by any chance (carrying a negative balance)?
| |
| | |
03-27-2011, 12:26 PM
|
#21 | | I WANT MY 10 YEARS BACK FROM RS.net!
Join Date: Oct 2007 Location: Vancouver BC
Posts: 22,124
Thanked 9,915 Times in 3,934 Posts
Failed 881 Times in 421 Posts
|
I can say that I'm an impluse buyer that returns things a lot but i've always paid my bills on time, in full.
Will my buying then returning habit affect my credit score at all?
| |
| | |
03-27-2011, 12:30 PM
|
#22 | | Meow
Join Date: Dec 2010 Location: Burnaby
Posts: 1,286
Thanked 665 Times in 216 Posts
Failed 77 Times in 17 Posts
|
So, instead of starting a new thread, i just have a question.
Okay, so when i was about 18, I got a ticket for running a yellow which i never paid till recently. I also applied for about 4 credit cards hoping i would get accepted early. I don't know why I did it but i still did. Now im 19 and i applied for a TD and a Capital One Credit card. Capital one approved me for a prepaid credit building creditcard, and I am still waiting for a response from TD. Just wondering did i fuck up my credit score because of all the applying I did before 19?
| |
| | |
03-27-2011, 02:00 PM
|
#23 | | Banned (ABWS)
Join Date: Aug 2010 Location: Delta
Posts: 864
Thanked 47 Times in 36 Posts
Failed 125 Times in 40 Posts
|
is it safe to say that since i changed from visa classic, to a student and dropped my limit from 2000 to 350, but i did that when i had balance of $0, so would that effect my credit score? as Futureshop's card gave me initially 2000 limit, then a 4000 limit and i have 1600 on that.
so is it safe to say that my credit rating went up? or?(fs card has 1 year no paymentneeded/no interest)
also is there anywhere i could check my credit for free/cheap? are some websites better than others?
thanks
| |
| | |
03-28-2011, 07:40 AM
|
#24 | | Need to Seek Professional Help
Join Date: Jun 2010 Location: Vancouver
Posts: 1,076
Thanked 359 Times in 162 Posts
Failed 9 Times in 4 Posts
| Quote:
Originally Posted by Dfdgd So, instead of starting a new thread, i just have a question.
Okay, so when i was about 18, I got a ticket for running a yellow which i never paid till recently. I also applied for about 4 credit cards hoping i would get accepted early. I don't know why I did it but i still did. Now im 19 and i applied for a TD and a Capital One Credit card. Capital one approved me for a prepaid credit building creditcard, and I am still waiting for a response from TD. Just wondering did i fuck up my credit score because of all the applying I did before 19? | to my understanding.. anytime you do that... it takes a hit on your score.. correct me if i'm wrong.
reason i say that is because ii've had an instance where i tried upping my credit limit by like 1000, and because i had too much available credit already (2 cards) that was turned down. i then asked how about 500. and the person i was talking to advised that i try another time because repeated attempts take a hit on your credit.
| |
| | |
Posting Rules
| You may not post new threads You may not post replies You may not post attachments You may not edit your posts
HTML code is Off
| | |
All times are GMT -8. The time now is 06:02 PM.
|
You are currently viewing our boards as a guest which gives you limited access to view most discussions and access our other features. By joining our free community you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is fast, simple and absolutely free so please, join our community today!
The banners on the left side and below do not show for registered users!
