Does multiple credit cards with high credit line but zero balance effect your credit score?
342474
The short answer is "yes."\n\nThe longer answer is "the amount of credit you have available to you is one factor among many that determines your credit worthiness.  Alone, having a $50k credit limit with $0 debt will not prohibit you from nor qualify you for a loan."\n\nI've included more information below.  I think the best one is epic.org which outlines the percentage of your score that is attributed to each factor.\n\nBy the way, the reason that having such a high available credit line is potentially considered a negative contributor to your overall score is because you have the ability to use that entire credit line and your income may not support that.
1025515
Yes.  However, if you have more than 4 credit cards and you pay them off, it does not necessarily help you when you purchase a home.  People do not realize that the more credit cards they have will cause a lender to not provide the best possible interest rate when buying a home, even if the balance owed is zero.  Some lenders will still consider the card holder a "credit risk" because of the number of cards they have regarless of balanced owed on the cards.  By paying off the credit cards, it will increase your credit score.  The best thing to do is cancel the cards you don't need.  Keep at least one major card, such as Visa, Mastercard, Discover, etc.,  wait 1 year and then try buying a house.  Always check your credit score to determine if your credit score allows you to negoitate for a good interest rate.  Do not go for "interest only" loans because the lender will require you to pay the interest first and no money will be credited to the prinicipal until the interest is paid in full.  Seek out an honest financial advisor, if you can find one, to give you the upfront details before you buy your home.
1108355
You can close the newest ones without harm to your credit.  And you can close any that don't report to credit bureaus...some of the smaller local stores may not report, but big places like Sears surely do.  Just keep the oldest one or two that report open at least.  \n\nIn general, having a bunch of store cards isn't going to be a big plus for you, but one aspect of your credit score has to do with how long you've had credit open, so if you have a couple of long-standing relationships with one or two stores, it might pay to keep those open.\n\nOf course, there's never a penalty for cutting up the cards and not using them.  Just don't close the accounts officially.  (I have a JCPenney account that I've had for decades, but I don't know if I even have a card for it anymore)
1176213
I am a former financial counselor for a consolidation firm in Orlando so I can answer your question. Your credit score is based on several factors. \n1) 35% of it is payment history. Making payments on time is the most important thing to your creditors.\n2) 30% is total debt and available credit. This is where your question comes in. Your creditors look at overal debtedness as an important factor of responsibility, and remember this is overall debt + potential debt. So if you have 5 credit cards with no debt on them, your credit score may be reduced because this is potential debt. You could go out tomorrow and max out your cards and be in serious trouble. \n3) 15% is account age. The older the better! \n4) 10% frequency of applying for credit. Go out tomorrow and apply for a car, a Macy's account, and a Victoria's Secret card, and you'll see how this will reduce your score. \n5) 10% Wild card factors. Such as types of credit lines. ex. Mortgage = Good. Credit Card = Bad. \n\nSo my advice is this. It sounds like you may be considering closing certain accounts etc, based on your question. I would definitely recommend closing any of your newer accounts but maintaining the older ones and keeping them open. If the older ones have a large max on them, you can call your creditors to reduce the limit, therefore lowering your potential debt without closing the account. If you have several newer accounts that you are considering closing, you may want to transfer all their consolidated debt onto a low APR credit card, and then closing them appropriately. (PS, when you close an account, make sure that you ask the creditor for a letter in writing confirming the account closure). \n\nSo in summary, closing accounts may increase your score because it eliminates potential debt, but not if you close the older accounts, because this eliminates the overall account age percentage (15%) and eventually your good payment history with that creditor (35%)!
1044328
Yes Closing out open credit cards will lower your score. It's all based on Credit Utilization, i.e. what percentage of your open credit lines are you currently using. FICO credit scoring adds up all your balances and all your credit lines to determine part of your credit score. The best is to have zero utilized but up to 25% is OK. If your utilization is higher than 25% it will definitely lower your score.\n\nI would look at your whole revolving debt picture before closing any accounts. Put the cards away in a safe place and don't use them for 6 months and then decide if you still want to close those accounts.\n\nGood Luck
225879
As far as I know if one of your credit rating is good, then it wont matter if the other's is bad - I think its like some loans.  Co-signer w/ good credit = :D
714181
The previous responders are correct.  If you close out excess credit card accounts, you will actually hurt your credit score.  You are erasing a portion of your credit history, plus lowering your debt/credit ratio. Both of these factors make a major part of your credit score.\n\nIt is recommended that you have 3-5 credit cards or other forms of accounts.  If you have (for example) 10 credit cards, and most are not in use, then it may help you to cancel some of them.  But you need to be careful how you do it.\n\n1) Cancel only one card every 3-4 months.  This will lower your score by a few points but it will restore itself in a few months.\n\n2) Do not cancel any cards if you are intending to apply for credit soon (car loan, mortgage, etc...)  You need every point you can get.\n\n3) Consider getting some of the credit limits lowered.  You really don't need that card with $10k of credit limits on it, do you?\n\n4) Use a couple of cards each month.  Buy something you usually pay cash for each month anyway (groceries, utility bill, gas) and pay it off a the end of the month.  The improved use of your credit will help your credit history and will deflect the negative hit when you start canceling other cards.\n\nCheck out http://www.myfico.com This site is the home site for the folks who developed the FICO scoring system, and has lots of consumer advice you can read.  Understand how your credit score is put together and calculated, and you will do just fine in the future.
650262
I am assuming you are in the US. If yes then this answer would apply to you...I uswed to work for JCPenney Credit Cards so I know a bit about Credit Rating. The more credit you apply the more credit rating is affected. particularly if the application is declined. So the smart thing to do would be to have not more than two or three cards.
454705
I risk the wrath of God by disagreeing with Credit Guru, but here goes....\n\nJust based on the fact that you are paying $99 for a credit card you don't use is a good enough reason to dump it.\n\nWhat you never want to do is cancel 3-4 cards at one time.  That will have an impact on your score.  But closing 1 account every few months will not hurt that bad, and it will recover after a few months.  \n\nAs long as you are not planning to purchase a home or car in the next few months, cancel the card and use that $10 a month you save to treat yourself on making a smart decision.  \n\n0;)
195104
It will be hard to find a creditor without extreme high intrest. You have to find a secured credit card. For example you send this card an amount of a $1000 as colateral and in exchange they will provide a credit card with an intrest that is backed by your money. To build your credit, charge things to your card but pay it in full when the statement comes so your balance is always back to zero.
402742
I CAN SEE YOUR NEW TO THE CREDIT GAME!  DON'T MISS ANYMORE PAYMENTS! GET A FEW MORE CREDIT ACCOUNTS, BUT DO NOT USE YOUR FULL CREDIT AMOUNT ON ANY OF THEM AND.....   DON'T KEEP A ZERO BALANCE!!!!   SHOWING YOU CAN OWE WITHOUT BEING UP TO YOU LIMIT ALONG WITH PAYING YOUR BILLS ON TIME WILL HELP BUILD YOU CREDIT. THEN YOUR SCORE WILL GROW! ................... AND DON'T TRY GETTING MORE CARDS AND NOT USING THEM THAT WILL ONLY TIE UP CREDIT.  YOU HAVE TO USE CREDIT TO BUILD CREDIT!
1147915
Some do... at the FatWallet forums (which I'll link to), they've compiled a list of the financial institutions (as well as some other companies) that are known to do a "hard pull" on your credit report (which messes it up) for non-credit accounts.\n\nhttp://www.fatwallet.com/forums/messageview.php?start=0&catid=52&threadid=260724
1080785
This "credit score" is a number factor, that credit bureaus have on you. Any thing you have ever financed, a home, car, an installment sales contract ie, furniture bought at a store going through a finance company will report your opening balance, monthly payments, current balance, and if you have ever been late. This also includes your Soc. Sec #, address, etc. \n\nIt will also include any collections, ie hospital bills that were never paid, doctors, electric, phone companies, etc. \n\nA credit card debt , is like having a Visa or Mastercard, Discover, Sears, American Express, etc. These are also reported to the credit bureaus.
1146066
I must disagree with our Chase expert.  Doesn't anyone bother to visit http://www.myfico.com and actually STUDY their answers first?\n\nWhen you lower your credit limit, you will effect your debt/credit ratio.  That in turn lowers your credit score.\n\nHowever, in your case, you don't have that great of a limit to begin with.  The small drop will recover in a few months.\n\nYou will do much greater damage by canceling cards.  But I understand your concerns.  The temptation of running up your cards is hard to fight.  I've seen many time how people get balance transfers or consolidation loans to pay off their cards, then run them right back up again.\n\nIf the card with $5000 is fairly recent, I would consider canceling it.  Having 3 cards is good enough to establish a credit rating.  Keep one at $2500 and lower the other two.  \n\nDon't do all this at one time!  Wait a couple months between changes so your score doesn't take a huge drop.  If you are planning a major purchase in the near future, don't do anything until afterwards.
345681
That depends on what you do after you transfer it.\nIf you leave the balance like it is it wouldnt be good because now you have another line of credit. (which can be used to further your debt). It also depends on the limit of your new card. Typically it will be lower than your old one so if you want to transfer the whole balance at once you will be closer to maxing out the new one (percentage wise). This also can bring down your score. Try to keep your card at least 25% below it's limit. I would transfer and pay off a chunk at the same time. Then if the card you are transfering from is your oldest I would shred the card (but dont cancel the account).
298605
Most of the people answering in the credit section have no clue about FICO credit scoring.\n\nIf you have a "dormant" (your term) credit card that you have had for a long time and it is not reporting any late payment then having that account and not using it will be a positive factor for your score. The thought that you can have too many cards and that is risky isn't proven in the credit scoring model used by FICO. People who get into trouble usually carry balances on all their cards. If you have lots of accounts with zero balances that shows credit responsibility.\n\nFrom a practical standpoint having 3-6 revolving accounts(with near zero balances) and 1-2 installment accounts(car, mortgage) will be "optimal" for attaining an Excellent credit score (720+) If you have more revolving accounts then you might consider which ones you don't ever use and close them.\n\nGood Luck
67882
A lot of factors play into your credit rating.  Generally, it is good to HAVE two or three credit cards.  You will actually lose points on your credit rating if you don't have any credit cards, or if you have more than four.  Another way to build your credit with those cards is to use them sparingly and always pay on time.  You credit report will show every time you made a late payment to a credit card co., mortgage co., or anyone that you owe. So... in answer to your question, two cards is better than one, but no more than three.