Comments on: Best credit card advice: diversify

By: lizweston

lizweston — Mon, 14 Dec 2009 17:13:25 +0000

If your scores are high and you have plenty of other cards, your credit is unlikely to suffer much if at all when you close an account or two. The people who are most at risk are those with troubled scores or few accounts, and you generally shouldn’t close accounts if you’re in the market for a major loan, when every point can count. The reason your scores can take a hit has to do with credit utilization; closing accounts narrows the gap between the credit you’re using and your available credit, which after a closure is lower. Again, not a big issue for people with high scores and lots of accounts.

By: lizweston

lizweston — Mon, 14 Dec 2009 17:10:27 +0000

To answer your last question first, it depends on the issuer and the card. CreditCards.com includes info about the credit scores needed to get approved for the offers on its site.

Having at least two cards is a good idea. There’s no hard and fast rule about how long you should wait between applications.

By: Stephanie

Stephanie — Sat, 12 Dec 2009 20:08:01 +0000

In September I applied and was approved for a secured credit card, so far my score has done nothing but increase since I’ve used it. I’m so happy! Appx. how long should I wait before I apply for a second card, I would like to obtain a card with a higher balance so that 1. it is reflected on my credit report and 2. I could use it on a montly basis (like the one I’m using now) and rotate which bill I pay.

I would also like to know appx. which scoring band do creditors approve cards to applicants? In the past I’ve been denied becuase my score wasn’t in the band that they prefer applicants to have cards.

By: First Data Merchant Credit Card Processing Services

First Data Merchant Credit Card Processing Services — Sat, 12 Dec 2009 08:41:52 +0000

Consider the advantages and disadvantages of each card. Not every credit offer is for everybody, therefore be honest about how you handle your finances before you select a card. Good luck!

By: Allison Shavitz

Allison Shavitz — Sat, 12 Dec 2009 06:12:36 +0000

What angers me is this: I have had excellent credit all my life. When I purchased my last vehicle, the finance woman I met with told me my FICO score was 800. I have several credit cards. Some I use and some I haven’t used in years. I usually carry a balance. And, I do have some things drafted monthly and have set up recurring payments to be made. However, WHY will our credit score suffer if WE CHOOSE to close an account? Several financial sites have noted this as being factual. I would love to close several accounts, but am afraid to do so because I don’t want my FICO score to crash. Any suggestions or does anyone have any information to the contrary?

By: Josh Heckathorn @ Creditnet

Josh Heckathorn @ Creditnet — Fri, 11 Dec 2009 06:05:21 +0000

Quite true…in my situation the closed account had very little effect on my CU ratio and overall credit scores.

By: lizweston

lizweston — Fri, 11 Dec 2009 04:32:32 +0000

It may help to have some monthly bill (lights, phone, whatever) charged to a card you don’t use regularly, and then set up automatic debits so you don’t forget to pay it. That said, having an account or two be closed is usually no big deal for your credit scores, as long as you have plenty of other active accounts.

By: Josh Heckathorn @ Creditnet

Josh Heckathorn @ Creditnet — Fri, 11 Dec 2009 04:03:20 +0000

Having several credit cards in your wallet from different credit issuers is definitely good advice these days. One just never knows when an account will be closed or a credit line will be slashed.

I have a 780 credit score, always pay balances in full, and use each of my cards at least once every few months. That said, I even had one of my cards recently closed due to inactivity.