Is it true that if you cancel a credit card it will nagatively impact your credit rating?Why?

I have piled up some unused cards, including store cards I havenot touched for years. They are cluttering up my credit report and one credit scoring agency has given me negative mark for "too many accounts opened"

Is it true that if you cancel a credit card it will nagatively impact your credit rating?Why?
There is no such thing as too many accounts open.





Credit scores are based on the following factors;





1. Payment history 35%


2. Time in bureau 15%


3. Types of credit 10%


4. New credit 10%


5. Debt to credit ratio 30%





When you cancel a credit card account you affect 1, 3 %26amp; 5 which counts 75% of your score.





The number of credit cards you have makes no difference what does matter is how you manage them, as long as your balance is below 30% of your limit every month your fine.





I once had 14 credit cards and still had a 750 score because I managed them correctly.
Reply:A big part of your credit score is based on the ratio of revolving debt to available credit limit. Carrying balances of more than 30% hurts your score. When you close accounts, you lower the available limit and thus increase the debt ratio. However, if you don't carry balances, closing accounts won't have that much impact.





Closing accounts also closed that history.





Many people will tell you to keep all those account open. But I think it is foolish to have a stack of credit cards that you don't use. All those cards have to be secured and monitored to prevent theft or fraud.





I recommend that you keep the two oldest major credit cards without an annual fee. Only keep store or gas charge cards if you have a special reason and actually use them. Close the rest. Do it in writing and request written confirmation that the account is closed.





You must have a really long list of open accounts for the credit bureau to ding your score. Usually store and gas charge cards close your account if you don't use them over a certain period of time.
Reply:The question is what credit scoring agency gave you the negative? Was it MyFICO? If not I wouldn't worry about it. The cards that are the oldest are helping your credit history age, keeping no or low usages on them is helping your overall utilization and possibly you are receiving discounts with those store cards when you shop thus saving you money that way. If you choose to close some of the accounts do so in writing requesting they put on your credit reports it was at your request the account's were closed. And I would advise against closing your very oldest account. You must realize if you close several accounts at the same time your credit score will take an initial nosedive so don't do this if you're about to apply for a loan or mortgage.
Reply:It's not true.


But, obsessing with the fico score will.


You have to borrow money and make payments on time to get a high fico score. You have to keep borrowing money and keep making payments on time to keep a high score. All you get is debt.


Next thing you know you have trouble paying it back.





Your fico score is actually an I love debt score. It measures how much you love to borrow money.


Your score is based on


How much debt you have.


How long you have been in debt


what kinda debt you have


how often you make payments on debt.





If you pay as you go. If you live on less than you make you will have money.

lily