ST Alpha - "Make a difference on what? Your credit score?" (Reading a Post)

SlickerTalk
Search Archives
The Leaderboard
The FAQ

Down to Post

Backboards:

Posts: 162

In response to "Credit card question" by J

Make a difference on what? Your credit score?

Posted by TWuG Jan 6 '11, 14:05

Credit score has a metric for debt as a percentage of available credit.

But they also don't want you to have too much available credit.

So, if the debt you are paying off is on a card that represents a large part of your available credit, it probably looks better to pay it down but keep the credit line.

If it's a small amount of credit and debt than it may not have much effect either way.

Responses:

canceling cards has a big effect on your credit score, afaik -- nm - y kant pixie read Jan 6, 14:06 3
- I've failed to find a clear answer on this. I believe canceling older cards can hurt you (because average age of credit drops) - ty97 Jan 6, 14:08 1
  - It also hurts because it affects the percentage of your credit that you're using, and that's a big factor. - Ender Jan 6, 14:23
- It certainly can. I think the bigger a % of your available credit they represent, the bigger the hit. -- nm - TWuG Jan 6, 14:07

Post a message top

Make a difference on what? Your credit score?

Replies are disabled on threads older than 7 days.