dcsimg
We research, you save.
Got Questions On Rates? (855) 610-2972

If I cancel seldom used credit cards, will this have an adverse effect on my credit rating?

HSH.com

Q: If I cancel seldom used credit cards, will this have an adverse effect on my credit rating?

A: It may have some effect, since it does cause a reduction in the total amount of potential credit you can borrow, while increasing your utilization ratio (the percent of your total available credit you are actively using) which are factors which go into your credit score. In general, it is probably a good idea to close out little or unused accounts over time, but you should not do so before you plan to do any new borrowing for any major purchases. Unless your credit is a mess, it is usually better to leave your credit profile undisturbed as you prepare to buy a home, a car or take on any new significant debt.


More help from HSH.com

  • The salary you must earn to buy a home in the 50 largest metros

    Here’s how much salary you would need to earn in order to afford the median-priced home in your metro area.
  • HSH.com on the latest move by the Federal Reserve

    The Federal Reserve concluded a meeting today, raising the federal funds rate; the target range for the key policy tool is now 1.5 to 1.75 percent.
  • Home price recovery index: Which metros have improved the most, least?

    Have home prices in your area fully recovered from the declines suffered during the Great Recession, or are they still struggling to make it back to the peak it reached before the crisis?
  • How long do I have to own or live in my home to qualify for the capital gains tax exclusion when I sell?

    You can exclude capital gains on the sale of your primary residence if you meet the IRS's ownership and use requirements.
  • 10 metros where a home costs about $1,000/month

    HSH.com identifies 10 metro areas where you can afford the principal, interest, taxes and insurance payments on a median-priced home for only around $1,000 per month.