credit card termination

Post reply Start a topic

Author

Message

Options

	Print this topic
	Invite a friend
	Email this topic

Bookmark online

	Add to del.icio.us
	Add to YahooMyWeb

sunil

Joined: 07 May 2009
sunil's page
Posts: 41

2 Magic Points

Subject: credit card termination

Mon Aug 17, 2009 3:13 pm

I had a countrywide credit card which was closed I have been told this would not affect my score. is that right?

Sven

Joined: 22 Jun 2009
Sven's page
Posts: 63

1596 Magic Points

Mon Aug 17, 2009 5:10 pm

It depends on how many cards you have and how high the limit was. Need more information to tell for sure. If you only have 1 or 2 cards, it will hurt your score because there aren't enough cards left to back your payment history.

fireyone

Joined: 26 Feb 2008
fireyone's page
Posts: 4500

8812 Magic Points

Mon Aug 17, 2009 11:48 pm

Too much credit can also be a bad thing. If it was not your oldest credit card and you have others in good standing it should not effect your score. Did they give you a reason as to why it was closed? There is a lot of that going on with the economy.

jassica

Joined: 13 Sep 2009
jassica's page
Posts: 68

14 Magic Points

Sun Oct 04, 2009 6:08 pm

That is a tough question. Closing it in itself will not do anything to your credit, but if the account had a long history of good payment history and also a low utilization, then that might hurt your credit. If the account had a bad history or was new, then it will not hurt you to have it closed.

As you are inquiring about credit scores let me give you some information on how it is calculated. It is important to understand how your credit score is calculated. Your credit rating is calculated based on several variables, including:

1) Payment history, which counts for approximately 35% of your score, is the most heavily weighted factor used in calculating your credit score. Consistently paying your bills on time has a positive influence on your score, while late or missed payments will hurt you in this area.

2) Total debt and total available credit, which counts for about 30%. This section looks at how much debt you have compared to the total available credit on your accounts.

3) Length of positive credit history, which counts for about 15%. The longer you maintain accounts in good standing, the better your score will be. This shows that you are able to make a long-term commitment to a creditor and are consistently responsible about making your payments.

4) Mix of types of credit, which counts for approximately 10%. Having several different types of credit, such a credit cards, consumer loans, and secured debt, will have a positive influence on your credit score.

5) The number of new credit applications you have recently completed, which accounts for about 10% of your score.

Quick Reply

Your Name

Subject

Message body


Page 1 of 1