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.
If I cancel seldom used credit cards, will this have an adverse effect on my credit rating?
Recommended Reading
-
How should I pay my closing costs?
Generally, there are three ways to approach the issue. Each option has different effects on your mortgage costs. -
How do I calculate my savings when I prepay my mortgage?
Most of HSH.com's prepayment calculators allow for regular principal prepayments. -
How do I calculate the monthly payment on my HAMP mortgage?
We do have a mortgage calculator which will do this for you, but not automatically. -
Should I refinance with a bank, direct lender or credit union?
There are a number of factors in play here, and how you personally value each will determine what is better for you. -
Why are mortgage rates higher for mobile homes?
Mobile homes are treated differently since they present different risks, and different or additional risks equal higher interest rates.
