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    4 Replies Latest reply on Mar 18, 2008 1:46 AM by BarryMBroker

    True or False? Credit Reports

    lowdose Wayfarer
      The more lines of credit on your credit report, the better?

      I overheard a conversation on a flight, and I've thought about it. I always thought that making timely payments on your lines of credit and then closing those lines once paid off was how you improve your score. Does the number of credit lines help/hurt?
        • Re: True or False? Credit Reports
          Ed O'Gee Adventurer
          Much like a consumer credit report, closing credit lines can actually hurt your business credit.
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          • Re: True or False? Credit Reports
            designer Tracker
            A few years ago, Suze Ormon was telling people on her show that you should NOT totally close your established credit card accounts that have a zero balance and that doing so would pull your credit score down. She also repeated it on Oprah and in magazine articles.

            Knowing this, I have a credit card that I never use but I am afraid to close the account for good. I also get stuck paying a $60 annual fee just to have the card I never use. I guess that's the price I have to pay for having available credit in case I need it. My only other choice it to call the bank and close the account for good. Something seems wrong with that picture? Catch-22?
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              • Re: True or False? Credit Reports
                AppleGraphics Adventurer
                Designer, I would close the account it may hurt your credit score a little but it is unlikely that the little nudge would decrease you enough to miss out on a better rate down the road while it is a certainty that the card has an annual fee. That being said I was in the same situation as you and when I called to cancel my account they of course asked why, I explained that I never used the card but I was still stuck with the yearly fee, they then offered to waive my fee for that year if I stayed so I still have the card. Basically what I am saying is there are always options.
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              • Re: True or False? Credit Reports
                BarryMBroker Newbie
                Credit scoring programs work in a very complicated way but one fact is that closing your lines DOES NOT help your score. The more AVAILABLE credit you have, the higher your score.