Stevek asked:
I usually get credits cards with 0%apr on purchases for one yr. And then after the one yr of use. i make sure it’s paid off and cancel the credit card. Does this affect my credit at all? Credit gets bad?
DORTHEA
Comments
Don’t cancel cards. This establishes good credit for you.
Cancelling credit cards and applying for new ones to replace them will lower credit score, as length of time credit is established is one of the factors that the score includes in calculation. If you are applying for new credit, or have opened new accounts, your score will be lower than if you keep the same accounts for a very long period of time.
Its better to leave the cards open for your credit history, just keep the available credit relatively low. The longer your credit is open, the better your score will be. (assuming good payment history)
Age of accounts has an impact on the score. Also, closing accounts that have available credit limit changes your limit - debt raios which also affects scores.
Here is some additional info. Hope this helps.
That is bad. Part of your credit score is the average length of time your accounts have been open. The longer they better. By closing the accounts, you are shortening your average account age.
here is my advice to you and it’s true,keep your credit card open for a long time ,don’t close it.this will be good for your credit history and make sure you only use 50% of your credit.example you have a credit limit of $1000 only use $500 and don’t go over that.this will dramatically increase your credit score.