Which is worse for your credit?

Deal Score0

Which is worse for your personal credit, Having a credit card with a large credit line but no balance or to cancel the card? I’m speaking credit score/report wise.

  1. Reply
    November 10, 2011 at 7:05 am

    Cancelling the card. If you have no balance, why don’t you charge like $ 25 a month and pay it off each month? that can really boost your score over time!

  2. Reply
    Amber E
    November 10, 2011 at 7:49 am

    probably closing the card

  3. Reply
    November 10, 2011 at 8:03 am

    Definitely, having a credit card with a large credit limit! It proves: 1. Someone trusts you! 2. You don’t need the money!

  4. Reply
    Whitney M
    November 10, 2011 at 8:48 am

    I dont think either is bad for your credit. canceling it wont do that much damage b/c u just dont want it. Having it and no balance it good because you have it just use it once a month and pay it off and you will get great credit. keep it for emergencies.

  5. Reply
    November 10, 2011 at 8:53 am

    Neither are bad, but neither are good.

    You can have a $ 15,000 credit line, but no balance, and no one cares. What they look at, and judge your score by, is if you DO have a balance, and you DO make payments to it.

    Ideally you want a couple hundred dollar balance, and make the minimum payment monthly, to raise your score as high as you can.

    I’m saying like a $ 200 balance, and pay $ 25 a month – Don’t go crazy.

  6. Reply
    tudorjason (matt)
    November 10, 2011 at 9:16 am

    Let’s just say that you described two ends of the credit spectrum. One of the best things for your score and report is having a credit card with a high limit and no balance, and one of the worse things for your score and report is to cancel the card. Having a high credit line, especially with no balance, means that you have a very high credit available. Canceling a card starts the clock to erasing your history. The amount of available credit and credit history are two major components to your score and report.

  7. Reply
    November 10, 2011 at 10:05 am

    Neither is bad, but if u have a credit card with a credit limit of say $ 5000 and u go for a loan for a car and it’s $ 20,000, the Bank considers the $ 5000 card as available credit u can possibly get and they figure that into weather u might get into trouble paying for it. Some Banks will ask u to close a card if u have too much credit available.

  8. Reply
    lucky s,
    November 10, 2011 at 10:51 am


  9. Reply
    annie w
    November 10, 2011 at 11:41 am

    The credit card with no balance has no effect on your credit. Closing the account has a negative impact on your credit score. Better to keep it open.

  10. Reply
    greg w
    November 10, 2011 at 12:21 pm

    You need to show that you are responsible with your card, by charging a small amount and paying it off shows you are that responsible person, you need to build your credit.

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