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

The Home Affordable Refinance Program (HARP) has been extended though December 31, 2018. Are you eligible? Learn about HARP here.

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

  • Metropolitan area definitions

    Metro area definitions for the 50 metropolitan areas in "The salary you must earn to buy a home in 50 metros"
  • How did we come up with these salaries?

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

  • Can I use a USDA-backed loan to purchase a manufactured home?

    A USDA-backed loan may be able to be used, but there are a number of restrictions.
  • HSH.com on the latest move by the Federal Reserve

    The Federal Reserve concluded a meeting today with a quarter-point change in the federal funds rate, but no changes to other monetary policy tools.