What will happen if i cancel my credit card and i pay off all the balance?

What will happen if i cancel my credit card with a $0.00 balance. I just paid off my credit card last month. Im not going to use it and i want to cancel it. Is it a good idea to cancel my card with a 0 ba;ance on it. Will it affect my credit score. Or what can i expect. Can anyone help me.|||Generally speaking, in most cases where someone closes their credit card they typically see a drop in their credit scores. The severity of the drop is dependent upon many factors, which makes it difficult to gauge how much it will be impacted. It is typically not advisable to close out an account, but there are cases where you can close the account and it may not negatively impact your credit scores. Below I will provide some scenarios you can consider to help you make a decision.





I will provide you with five scenarios to illustrate the possible impacts on your credit score.





Low balance, low available credit, new account


Let us start with an easy scenario first. Let us say the account has a zero balance, a relatively low available credit balance, and is among your newer accounts. In this situation, there will be virtually no negative impact on your credit score for reasons we discuss below.





Low balance, low available credit, old account


Now let us change the facts slightly. Let us say that this account is your oldest, has a zero balance, and a small available credit balance. The length of a positive credit history counts for about 15% of your credit score. The longer you maintain accounts in good standing, the better your score will be. This shows that you are able to make a long-term commitment to a creditor and are consistently responsible about making your payments. Generally speaking, if you have accounts with long history (five or more years) and no missed payments, you should keep these open and with a zero balance.





Low balance, high available credit, new account


Now let us change the facts slightly again. Let us say that this account has a zero balance, is not your oldest, and has a relatively large available credit balance. Let us add one fact here -- your other accounts have a relatively low available credit balances. Total debt and total available credit counts for about 30% of your credit score. A credit score considers how much debt you have compared to the total available credit on your accounts. If all of your accounts are maxed out, you will be considered a poor credit risk, because it appears that you are struggling to pay off the debt you have already incurred. If your account balances are relatively low compared to your available credit, this part of the risk analysis should help your overall credit score.





The score calculation also looks at these two factors independently. Having too much available credit, whether you have used it or not, could hurt your credit score, as statistical studies have shown that people with excessive amounts of available credit are a higher credit risk. Unfortunately, the bureaus do not define exactly what they consider excessive, so the best tip is to use credit conservatively and to keep your debt-to-credit limit ratio low.





If closing a high available credit balance account alters your debt-to-credit limit ratio significantly then you can see a decrease in your credit score.





High-balance account


The bank will expect you to pay the balance immediately if you choose to opt-out and the bank closes the account. If your cannot pay-off the balance then the delinquency will harm your payment history. Payment history counts for approximately 35% of your score, and is the most heavily weighted factor used in calculating your credit score. Consistently paying your bills on time has a positive influence on your score, while late or missed payments will hurt you in this area. If you have delinquent payments, the older the delinquency the less the negative impact on your score will be. Conversely, recent delinquent payments are very harmful to your credit score.





Unique account


The mix of types of credit counts for approximately 10% of a credit score. Having several different types of credit, such a credit cards, consumer loans, and secured debt, will have a positive influence on your credit score. Having too much of one type of credit can have a negative impact. If you have one or two other credit accounts, then closing this account will harm your credit score. Conversely, if you have a diverse array of credit accounts closing this account will not have a large impact, all other things being equal.





As you can see, the answer to the question "How much will closing one credit card account harm my credit score?" varies with each person and their unique circumstances and history. To learn more about how credit scores work I encourage you to visit FICO Score Calculation.





I hope this information helps you Find. Learn %26amp; Save.





Best,


Bill


www.bills.com/blog/|||Your credit score uses many variables... One is debt to income ratio, and of available credit, what percent do you have available. So if you have a credit card you owe nothing on, with a limit of 10,000 dollars, this is in your favor and shows you have available credit you are not using. If you cancel the card, this wipes out that available credit and will lower your overall credit score. Keep the card active by using it for a very small purchase once in awhile and pay off the balance|||keep the card. every 6 months but a pair of shoes or pants with it. pay it off quickly. this improves your credit rating even though its a small amount.|||Don't do this. Just don't use the card. If you cancel it your credit score will fall. For reasons that only you would understand....|||Your credit score will drop if you cancel the card.|||It is best to cancel your credit card with a zero balance. It will increase your credit score. When you call the company they will do their best and make offers to keep you from cancelling. Hang tough and congratulations.