Two ways how ending a credit card account can hurt your credit history

If you have many credit cards and credit cards are seriously in debt, chances are good that you should be thinking about getting rid of some credit cards. The curious fact is that if you get rid of a credit card without giving attention to the points listed below, you may be shooting itself in the foot. Yes, it could impair its history of additional credit. Here is how this happens.
Assume which will have 3 credit cards with the following data
Card A: $ 2000 credit limit - $ 1000 Outstanding Balance Card B: $ 5000 credit limit - $ 2500 Outstanding Balance cards C: R limit of $ 10000 credit - $ 5000 Outstanding Balance
With these credit cards the data that emerges is that you have a total credit limit of $ 17000 of which you have a balance of $ 8500, or 50%. The truth is that the percentage of your outstanding balance with credit limit should be reduced. The credit rating agencies prefer that the limit is around 30%.
Now suppose you decide to end your credit card and the transfer all their credit card balances B assuming he has a low APR. Now you have a total credit limit of US $ 15000 and balance of $ 8500 (providing the balance transfer does not increase credit limits). With this step your outstanding balance with credit limit proportion rises to 57% (rounded).
So, the net result is ending a credit card will increase its ratio of debt to limit what is not good for history.
Secondly credit, the age of credit cards also matters when it comes to determining credit history. The credit card that stays with you for more than 6 months is good to keep the credit rating agencies give a lot of weight because of the age of a credit card. So if you choose to order a credit card and it is an old, to give it a second thought. The whole history of credit associated with this credit card can be wiped out in an instant with this decision.
The image that emerges of the above facts is that if you want to finish a credit card make sure that your outstanding balance with credit limit continue or ratio It is weak and does not increase. Secondly, not finish a credit card that has a good credit history record time. cherri luisa



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