Will cancelling credit cards and changing banks ruin my credit rating?
360316
The above answers are wrong.  Please take the time to go to http://www.myfico.com\nThis is the home site for the people that developed the credit  card scoring system used by the agencies.  \n\nPart of your score involves credit history and your "debt to credit" ratio.  \n\nIf you cancel your credit card, it will have a negative effect on your score.  However, it's also not good to have a card that charges you annual fees, especially when you don't use it.  The drop in your score will be temporary, and should be restored in a few months.  I suggest getting whatever credit you need first, then cancel the card.\n\nYour relationship with the bank isn't monitored by the credit bureau unless you have taken out loans.  The loan info will be on your history and will not be removed when you switch banks.  So you are safe there.  My experience with credit unions is they have better interest rates on both savings and loans.  Isn't there a way that you can somehow maintain your relationship with them?
791251
It depends on your total credit available. You want leave 50% or more of your credit line open. For example, you have two cards with limit of $1,000 each. If you have $500 balance on one and $0 on the other, you currently have 75% credit line open. If you cancel one card, you will have 50% open. That will affect your score somehow. If you have ample credit line, it won't matter.
201453
Absolutely close or cancel any un needed cards. If not for security reasons alone. Banks look at how much credit you have"open" and available to you. They compare this to your income to get a ratio. A debt to Load ratio. So if you have 5 cards out. that's realistically 3 too many.You need to keep a "balance" between having some credit cards and too much debt. You need a few cards open and active to satisfy the companies that you are worthy of more credit but not too much to have them think that their acct is the one that you will default on.
178339
Maybe I can explain it more clearly for you....\n\nA big part of your credit score relates to your debt to credit ratio.  How much credit do you have, and how much of it are you using now?\n\nLets take this example.  \n\nYou have 8 credit cards.  The credit limits are all differant from $2000 to $10,000.  Lets say the combined amount is $40,000.\n\nNow lets say 5 of those cards have a zero balance, the other 3 have $400, $1850, and $2500.  Your total debt is $4750.  \n\nYou want to close out the 5 cards with no balance, so we will assume that you remove  $25,000 work of credit cards.  \n\nBefore you canceled the cards, you had $4750 in Debt, and $40,000 in Credit.  YOur Debt/Credit ratio is 12%.  The lower the percentage the better, so 12% is excellent!\n\nNow look at what happens when you cancel those cards.  YOu still have that $4750 Debt, but now you have only $15,000 in credit.  Your new Debt/Credit Ratio is now  32% (nearly 3 times worse then before).  Your credit score will be adjusted to reflect this.\n\nThat's why it's not wise to cancel your cards.  If you must do it,,cancel them 1 at a time over a long period of time.\n\nGo to the link below and study how your FICO scores are calculated.  This is the site of the people who designed the system.
803028
Too many cards will hurt your credit rating.  They look at your available limits (i.e. what you could borrow); if it's too high, the rating is lower.\n\nThey look at payment history.  Just have one or two cards, use them for purchases, and pay them off regularly.  That will build your credit history and resultant credit rating.
368008
Don't cancel a card unless you have no choice.  When you apply for any sort of loan or another card they look at your credit rating.  Part of that rating is how much people are wiling to give you versus how much you debt you carry.  Say you have two cards with a $1000 limit each and a total balance of $1000 between them.  If you cancel one card you go from having $2000 trusted to you, with $1000 used to having $1000 trusted to you and all of it spent.\nCut up the card, throw it away, hide it until you pay it off, but don't cancel it.
66979
To me, all the points and miles business is a hook to lure you into buying and paying for something else or buying something you do not need or weant.  I would look for the lowest possible rate, no annual fee, best grace period, lowest default rates, and a card that has a customer service department based in the US that  speaks English.  I have actually cancelled cards because their customer service centers were in India or Panama and could not understand a word they were saying.  Also, check to see that the interest rate is not computed over TWO billing periods (this can cause you to incur a finance charge even if your balance is zero) Bear in mind that no matter what the terms are you can get, these credit card agreements are one-sided affairs that the card issuer can change at the drop of a hat. So you might think you have one deal one minute and turn around and BAM! all of a sudden the rate is 42%.
250326
Typically raising your score by 10 points will not affect your scores enough to change your interest rates unless you know you are 10 points or less below the next credit tier(an auto loan example)\n\nI paid off my Macy's card last month and it was less than 50% utilized(I had a balance less than 50% of my credit line) and it only raised my FICO score(Equifax) by 12 points. I actually thought it would raise my score more since this was the only credit card I had that had a balance. \n\nGo figure, that's why credit scoring doesn't always make sense.\n\nGood Luck
1102530
First, cut up your cards and stop using them! Don't close the account though.  \n\nSecond, call your credit companies and talk to the manager-or someone that can and WILL get your interest rates down to 0% or almost 0%.  Don't take no for an answer.  I had to tell them that I was going to switch to ------ company before they lowered my interest on my cards.  your credit card companies don't want to lose you as their customer.    Remember they've got you - they think! \n\n Now that you have done that  DON'T PAY LATE and ALWAYS pay as much over your minimum due as possible! \n\n Also carefully check if they are charging for those so called "When you are out of work and cannot pay your bill---We will" insurance plans.   They don't work  I have tried it before, when my husband could not beg for a job I tried using this program and all I got was a black mark on my credit report and a closed account!  These programs eat up your money also!\n\n  Make sure you don't have any credit card protection plans  charging money from your cards also.  credit card companies should to be doing that service for you at no charge! \n\nAlso, Don't use those credit agencies.  They also leave a black mark on your credit report.  They say they help you with your credit but try to buy a home after using an agency and no creditor will want to help finance you.  (Been there - Done That!) You can get the same results as they do and save your credit report!\n\nLast but not least - after you have payed off your cards then only use ONE or TWO - ONLY CHARGE WHAT YOU CAN PAY OFF EVERY MONTH and YOU WILL SEE YOUR CREDIT SCORE JUMP HIGHER!\n\nAnd GOOD LUCK!
653128
If they dont report the information to the credit bureaus it does not affect your credit.  Going 7 dollars over does not effect your credit if paid within the 30 day period
974056
Try not to spend on the cards anymore. That's the most important factor.\n\nCan you sell stuff? Ebay or whatever, you'd be surprised what people buy. Any income, pay it off your cards.\n\nEconomise on your expenses. It's possible to eat pretty cheaply y'know. \n\nIf you're making all your payments, then your credit rating is probably OK. See if you can transfer any balances to lower interest cards. Make SURE you close the old cards off - call them to cancel the accounts. \n\nMake minimum payments on all but one card. (The one with the lowest balance). Overpay that one. Even a few bucks will make a difference. Another thing that makes a difference, even if it's only a dollar or two a month is to pay early. Make sure that the card payments go out as soon as you're paid. Then you know how much you have left and they'll charge you less interest. \n\nBut won't it feel good to have even one card paid? When it is, hit the next card. It will take a few years.
877860
Deborah,\n\nHave you tried to switch the cards to lower interest cards, presumably  your credit rating is okay ? so try applying for cards with lower rates on the interest and then switching to those cards, cards like capitalone.com who might be able to give a limit that allows you to get rid of some of the cards down to say three or four.   Presumably you need at least one or two cards so thats an option.\n\nAnother suggestions is take a  look in the financial pages of the "Daily Mirror/Mail" there are always loan firms advertsing in there for debt consolidation loans, do it while you are able to before things get out of hand. Sounds like you are having a bit if a struggle there.
298490
loan shark?i would avoid like the plauge tho,and sort your finances out and rebuild your credit rating 1st!
298710
Actually, cancelling them may lower your score. Here's why.\n\nLets say you have 15 cards, and the average limit is $3000.  that gives you $45,000 in available credit.  Now lets assume you have $6,000 in debt on these cards.  The differance between these numbers is $39,000 (your available credit).\nYour debt to credit ratio is 14%. Very nice!\n\nNow lets cancel those 8 cards.  That removes $24,000 in available credit.\n\nNow you have 7 cards, $21,000 in available credit, but you still have that $6000 in debt.  Your new debt to credit ratio is now 28%.  By their standards it's not bad, but not as good as 14%, so they may lower your credit score.\n\nThat said....(that was your question?)...if it was me I'd go ahead and cancel them.  15 cards is crazy!  By wisely using those other 8 cards, you will easily restore your store within a few months.  If you have no plans to buy a car orhome soon, that would be my recommendation,.\n\nGo to www.myfido.com and read up on how credit scores are calculated.  Once you have educated yourself, you can examine your own situation and see if it's worth it.
1084346
For the most part, it doesn't matter what country you're in. The only thing that can improve your credit rating is time and better credit history. Make your payments on time. Make extra payments when possible. Call your creditors to see if they can help you by lowering your interest rates and refinancing loans for a lower cost. My husband and I had BAD credit, and this was the only thing that could help. If you file for a bankruptcy, that will be on your credit for several years and will look worse to possible creditors than the fact that you are trying to dig yourself out on your own. You made the mess, no you have to clean it up. I know it sucks, but it's true. Make sure you keep accurate records so that when you finally pay a bill off, you can contact the credit bureaus with that information and get the bad info off quickly. We did this and we were able to buy a home, a new car, and a motorcycle within a year and a half! Good luck!
186890
If half of you paid any attention he was talking about his bank account...\n\nno closing your account will have no effect on you credit report so long as you do not have a negitive balance when you close it.\n\n...see simple and to the point!\n\n-Good Luck
1158619
Well, it depends. How long have you had your credit card? Have you paid on time? Have you ever maxed it our or gone over your limit? If you have been a good client, they are likely to lower your rate. If you have good credit, you can always check out the hundreds of credit card offers out there and transfer your balance to a zero interest card! Most companies have teaser offers to get you to switch to their card. No interest for 6 months, then 7% thereafer, something to that effect. If you Google 'find the right credit card' you can find the many sites that show you what offers are out there. Remember not to apply for several cards at a time. That can lower your credit score. Make sure you do your homework if you are going to switch and then only apply to that one. Hope this helps!