STYLETHREAD -- LET'S TALK SHOP!

TheLovelyLady71 · Hermes

Financial Woes...

Kelly · Hermes

I'm pretty sure that canceling a card hurts your score. From what I understand, your credit score is largely based on how much you owe compared to how much you *could* owe. So, for example, say you have two credit cards, both with a $5,000 limit (so you *could* get up to $10,000 in debt on those cards). You charge $2,000 on one of them. Right now, you're only using 20% of your available credit. But as soon as you cancel one card, you're suddenly using 40% - and that percentage hurts you.

So, I think you should just pay off the card in question, then cut it up so you can't actually use it, but the account is still technically available to you.

wetbandit42 · Marc Jacobs

I found this post to be helpful.

http://www.getrichslowly.org/blog/2008/09/16/how-and-when-to-cancel-a-credit-card/

TheLovelyLady71 · Hermes

Thanks ladies!!! I'll check out the website wetbandit!!! :) And I did cut up my Best Buy card, I'm sure Cap. One will be next, but I will keep ONE for emergencies.....

Aurora · Marc Jacobs

I usually keep my cards open unless there is no way I will ever use them again (ie furniture store credit cards). When I need to curb my spending I just remove the cards from my wallet and put them in a safe place for later.